Departmental Accounting And Enterprise Cost Control

The survival and development of an enterprise depends on profit.

In recent years, many achievements have been made in the internal cost control of enterprises in China, but there are many problems at the same time. The main points are as follows: first, the concept of internal cost control in enterprises is backward.

At present, in the actual operation of cost control, enterprises in China are generally backward in concept. Many enterprises still limit the scope of cost control to the production process, and focus on reducing the cost to the single control of production cost, but neglect the impact of enterprise project development and product design on product cost.

Second, the cost control means is single.

In the current internal cost control of enterprises, most enterprises believe that the basic means to reduce costs is to economize, and one-sided start from reducing costs and even trying to avoid certain costs, and do not fundamentally solve the problem of cost control.

Third, the main idea of internal cost control is wrong.

For a long time, we regard cost control as a patent of a few senior managers.

Everyone thinks that cost control is a matter of the finance department, production department or management department, which leads to the indifference of the staff's sense of cost.

Fourth, there is a lack of systematic strategic cost management thinking.

The research of traditional cost management methods is aimed at a single cost management method. There is no research on the relationship between methods, and can not form a systematic strategic cost management system.

1. Significance of departmental accounting

It is difficult for enterprises to accurately determine the methods and standards of assessment for a department, especially the functional departments of enterprises, and it is difficult to define the criteria and results of the examination.

The effective control of enterprise cost can not be realized by one or two departments. The managers of enterprises have many ways to control costs, and the more common ones are: high centralization.

As far as tens of millions of people are concerned, a few minutes to a few cents must be signed by the supreme leader.

The middle-level leaders have the right to examine and approve certain quotas. If they exceed the quota, they must sign the above level directors, so that they will be examined and approved at various levels until the top managers.

The effects of the above two methods are generally not good.

The key to cost control lies in the "unit" of the enterprise -- the Department, rather than the "individual" employee.

To seize this fundamental, enterprise cost control problems can be solved easily.

Departmental accounting is an economic responsibility assessment method for departments. It is also an economic accounting method that fully empowers the department leaders.

The main contents are: the cost and profit indicators of the whole year are divided into groups and individuals, and are linked to rewards and punishments, so that the responsibilities, rights and interests are unified. Under the control of this index, the department managers can decide their own revenue and expenditure items. The company designated financial, business management, auditing departments and other departments (or a specialized project team) regularly conduct supervision and examination, cost examination, publish regularly, collect and reward rewards and punishments at the end of the year, and the departmental leaders have full autonomy in the whole department's expenses, but at the same time, they also assume full responsibility.

Departmental accounting can effectively solve the problem of cost control, and cost control is actually a process of full participation and individual control.

The whole staff participation means that every person in the enterprise will affect the result of cost control, but the key point of cost control is not the individual individuals, but the direct leaders of these individuals -- departmental leaders.

Modern enterprises are led by department leaders.

One of the most important functions is to control the cost of the department effectively.

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If the departmental leadership really implements effective cost control to the Department, it actually achieves the goal of cost control of the whole enterprise, so the implementation of departmental accounting method based on departments is an effective means of cost management.

The advantages of departmental Accounting: fully empowering the department leaders, greatly mobilizing the enthusiasm and responsibility of middle managers and employees, and linking cost profits with individual (departmental) interests. Every department, every supervisor and every employee will pay close attention to cost profit, pursue the best cost and maximum profit, so as to realize the reduction of company's operating cost and the maximization of profit.

Two, enterprises should do well in the following aspects.

1. leaders at all levels should pay attention to departmental accounting work and be determined to implement departmental cost accounting system.

Accounting personnel in various departments should understand operation, especially be familiar with production technology, value engineering, cost minimization theory and method, persist in combining technology with economy, grasp the theory and method of cost accounting, carry out scientific prediction, decision making, budget, control and analysis, and use computer to process relevant information, so as to meet the needs of modern cost management.

We need to make departmental accounting improve and feasible for cost control work in the future, rather than simply overspending and saving the actual cost of the Department.

2. enterprises should establish the concept of strategic cost management.

The enterprise value chain analysis is carried out to identify all the cost in the entire value chain related to the product, eliminate all "non value added operations" as far as possible, and increase the efficiency of the "value added operation" as much as possible, and reduce the occupation and consumption of its resources, so as to maximize the optimization of the "value chain" so that enterprises can gain advantages over their rivals in terms of revenue and expenditure.

The connotation of departmental cost prediction and control should also be extended to non-material costs, such as human resources costs, service costs, environmental costs, and related paction costs.

3. strengthen financial accounting and enrich the financial reporting system according to the requirements of fine management.

Strengthen the accounting link, according to the needs of unit management, make use of the advantages of computerized accounting, and divide detailed accounting of items, subdivisions and sub subjects to ensure the provision of accounting information as detailed as possible.

Through the mutual examination between departmental accounting personnel and cost accounting, to ensure the accuracy of accounting.

To increase the contents of accounting reports, and to submit a unified format of financial accounting reports, and set up and regularly submit budget income, expenditure implementation and the reasons for the difference, so that the users of the report can clearly grasp the progress of the implementation of the unit budget, and finally form a crisscross target cost management system in the whole enterprise.

4., carry out training in various channels and forms to raise the level of financial management of department leaders.

The right direction is half the success and the cost control is the same.

To do well in the work of departmental accounting, we must constantly improve the financial management level of departmental leaders.

First, through the layout of various special tasks, the department leaders should increase the awareness of standardizing financial behavior, grasp the methods, steps and key points of work implementation, such as holding a budget preparation arrangement meeting, which can make the department leaders pay more attention to the budget work, and improve the quality of the budget preparation of the Department through exchanges and drawing lessons from the advantages of other departments' budgeting.

Two is the department accounting staff and the cost accounting through the regular meeting system, discusses the problems found in the work practice, in order to improve the efficiency of cost accounting in solving specific accounting problems and implementing accounting supervision matters.

Three, the financial department should collect relevant financial laws and regulations, form a compilation, distribute it to all departments leaders and departments accounting personnel, so as to facilitate the lawful and efficient development of specific work.

5., enterprises should also raise the awareness of workers on cost control.

Enhance staff's cost concept and take cost control consciousness as part of corporate culture.

Cost involves the performance of all departments and staff of the enterprise. In order to really achieve the purpose of cost control, we must combine the above and below to establish a crisscross mass cost control organization to enhance the competitiveness of enterprises and meet the challenges of all parties.