How Can Smes Start Management Accounting Business?

What I talked about before is basically what jobs can be done in the enterprise as management accounting. When it comes to the end, all of them are management accounting, and each responsibility center needs to do management accounting business. Some people will say that the business department has its own main business. How can it be a management accountant? No matter what business is done, it is necessary to have written records, including professional data, including records of the resources or costs of performance and cost, which are related to management accounting.

But how can we start management accounting business in small and medium-sized enterprises and how to train professionals in this field?

All employees in a company are required to do management accounting work, but management accountants like project managers usually carry out management accounting business with project team members. But at present, many enterprises do not have managerial accountants' positions. Who will be responsible for this role? Generally speaking, the chief financial officer, manager, supervisor or general ledger accountant (a small enterprise may be an accountant) is more suitable for the role of management accountant.

Before the implementation of management accounting thinking in the whole enterprise, the finance department needs to do basic data collection and sorting in advance one or two years, and at the same time, it also requires the statistics of business data. This is a hard process but can not see the process of achievement.

For example, all materials, products, customers, suppliers, departments, employees and so on are unified coding within the company's scope. Materials and products are coded out of storage. This work involves almost all departments of an enterprise, and it is really not easy to do so. The key business processes are smooth, the division of labor is clear and the cost collection is in line with the business characteristics. Every business has original records at the time of its occurrence, and it can really achieve accrual basis.

With relatively complete and accurate historical data, management accounting Data analysis It's really useful. Through analysis, problems are found and solutions are put forward. At this point, management accounting is basically internal financial work, not passed to the business sector.

Starting a comprehensive budget is the first step to really bring management accounting to the company. The difficulty of starting a comprehensive budget in the first year is much more difficult. The business budget is put forward by various departments (reference historical data), Financial audit 。 The budgetary amount of the business department also needs the support of the business volume, such as the travel expenses of the sales department, the number of salesmen, the average number of business trips per year and the daily cost, which can basically calculate the annual travel expenses of the sales department. This audit budget can truly reflect the level of financial personnel, if you do not understand the business, easy to be led by the business department nose.

The budgetary amount of the business department is best calculated through business data. It should not be simply based on the proportion of the actual amount incurred in the previous year, the cost will float down, and the performance will also fall down (sometimes it is not directly visible). So when examining the budget, we should not only care about the cost, but also care about what kind of goals we need to achieve. With this kind of budgetary data supported by business data calculation, the audit is justified and the budget will be much more feasible.

Reduce as far as possible Business department It is very important to play digital games through budget. It is performance management that really lets all people accept management accounting. Budgeting is actually a means of enterprise resource allocation. It needs to assist a series of company policies, motivate employees to accomplish their goals through performance management, and performance management is related to the interests of each employee.

For example, some budget is frugal, the size of the space can be assessed in advance. In order to motivate employees, they will save part of the cost to reward employees. Some budgets do not need to be saved, but a certain reward fund can be allocated to achieve awards through evaluating its effectiveness. There are many ways and means. Every year, we need to adjust according to the actual situation and change year by year, otherwise everyone will adapt to it and lose the significance of performance management. Only by doing the performance management, can management accounting really become useful.

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