Management accounting reports are prepared. Management reporting and what it includes

The main purpose of the formation of management reporting is to satisfy the information needs of management within the company by providing indicators in kind and value, thanks to which it is possible to evaluate, control, plan and predict the activities of its divisions.

Such reporting is carried out on a voluntary basis. It does not need to be sent to the authorities.

Management reporting - what does it include?

In the structure of management reporting relating to the positions of Gen. director and his deputies, the following information can be prescribed:

• The cost of manufactured products;
• Characteristics of the unfinished process of manufacturing products;
• Volumes of production of goods sent to the warehouse;
• Volumes of materials and semi-finished products that are used in the manufacture of goods.

Formation of management reporting

Formation of management reporting is carried out in the following order:

1. Clarification from Gen. the director, as well as his deputies, what information he needs to submit and with what frequency.
2. Ask the company's accountant for basic details.
3. Formation of documentation, which will reflect the main performance indicators. The employee responsible for reporting can generate such documentation separately for each governing body.
4. Direct reporting.

Preparation of management reporting

The requirements for the preparation of management reports are as follows:

• The information contained in the report must fully comply with the purpose for which this report is being formed;
• The report should not contain biased opinions and subjective assessments;
• The report must be compared with the plans;
• The report should not contain unnecessary information - the smaller it is, the easier it is to comprehend its content.

Management reporting - an example

Here is an example of a management reporting structure:

Composition of reporting	Main users of reporting
Report on the financial results of the company (master reports)
Cash Flow Statement	Firm Management and Budget Committee
Statement of profit and loss incurred
Forecast (management) balance
Management reports on financial results of the company
Analysis of the composition, structure and changes in the income and costs of the company, as well as assessing their relationship	Company management and shareholders
Analysis of changes in profit indicators
Profitability analysis
Reporting on the execution of operating budgets for various purposes
Accounts receivable report	Sales Manager, Accounting Department financial department
Accounts payable report	Purchasing manager, financial department and accounting department
Material Purchasing Report	Managers production department and supply department
Report on the sale of manufactured products	Sales department manager
Inventory report for materials and finished goods	Managers of the sales department and the supply department, head. warehouse
Report on existing work in progress	Chief engineer, production and sales department managers

Stages of formation and preparation of management reporting

Important aspects in the preparation of management reporting: forms and examples. Management reporting is one of the most important sources of obtaining information about the results of a company's activities, based on a combination of financial, sales, marketing, production and other indicators.

Information in management reporting should be economically interesting and actively used by managers, founders and business owners. The data disclosed in management reporting is necessary for the analysis of all activities. This helps to timely identify the causes of possible deviations from the parameters set by the business strategy, as well as show the reserves (financial, material, labor, etc.) that have not been used by the company so far.

Below are 7 stages of formation and preparation of management reporting.

Step 1. Diagnosis of the existing management system in the company

This step is necessary for the analysis organizational structure company, the process modeling format is determined. If the company has business process schemes and their descriptions, these documents are analyzed and the main problem areas that require optimization are identified.

Diagnostic goals	Search systems approaches to increase the efficiency of management reporting
Classification and analysis existing forms reporting	According to the form of presentation- tabular, graphic, text; By business segment– purchase reports, sales reports, tax report; By addressing the presentation- reports for the management, reports for the leaders of the Central Federal District, reports for managers; By the amount of information operational reports on current projects, investment reports, final financial reports, summary (master) reports; By content - comprehensive reports, analytical indicators, reports on key indicators KPI performance.
Improving the quality and reducing the time for obtaining the output analytical information necessary for the adoption of quality management decisions.	Analytical reports are of high value when they can be obtained in a short time and contain information in a form that best meets the needs of the employee who makes decisions based on this report.
Increasing the reliability of stored information.	To make decisions, you need to rely only on reliable information. It is not always possible to understand how reliable the information presented in the reports is; accordingly, the risk of making poor-quality decisions increases. On the other hand, if an employee is not responsible for the accuracy of the entered information, then with a very high degree of probability he will not treat the information with due care.
Increasing the analytical value of information.	The non-systematic approach to entering and storing information leads to the fact that, despite the fact that large amounts of information have been entered into the database, it is almost impossible to present this information in the form of reports. Non-systematic here refers to the input of information by employees without developing general rules, which leads to a situation where, in terms of meaning, the same information is presented for different employees in a different form.
Exclusion of inconsistency and inconsistency of information	In the case of fuzzy certainty in the issue of division between employees of duties and rights to enter information, there is often multiple entry of the same information in different divisions of the company. Together with a non-systematic approach, the fact of duplication of information can even be impossible to determine. Such duplication leads to the impossibility of obtaining a complete report in the context of the information entered.
Increasing the predictability of obtaining a certain result	Decision-making is almost always based on an assessment of information from past periods. But it often happens that the necessary information was simply never entered. In most cases, the missing information would be easy to store if someone had assumed in advance that it would ever be needed.
Result	Based on diagnostics and decisions taken being finalized job descriptions, existing business processes are being reengineered, reporting forms that do not carry information for data analysis are excluded, KPI indicators are introduced, and accounting systems to obtain actual data, the composition and timing of management reporting are fixed.

Step 2. Creation of a management reporting methodology

This stage is necessary for delegating authority in terms of drawing up operating budgets and determining responsibility, specific centers of financial responsibility (FRC) for the preparation of certain budget plans(segments of management reporting).

Figure 1. The sequence of stages in building a management reporting methodology.

Goals and objectives to be solved as a result of the introduction of management reporting in the company:

• Establishing and achieving specific key performance indicators (KPIs);
• Identification of "weak" links in the organizational structure of the company;
• Improving the performance monitoring system;
• Ensuring transparency of cash flows;
• Strengthening payment discipline;
• Development of an employee motivation system;
• Rapid response to changes: market conditions, distribution channels, etc.;
• Identification of internal resources of the company;
• Risk assessment, etc.

Composition of management reports depends primarily on the nature of the company. As practice shows, the composition of management reporting (master report) usually includes:

• Traffic report Money(direct method);
• Statement of cash flows (indirect method);
• Gains and losses report;

Figure 2. An example of a management reporting structure.

Figure 3. Relationship between the classifier of management reports and objects management accounting.

Consolidation of budgets

The formation of consolidated management reporting is a rather laborious process. Consolidated financial management reporting considers a group of related entities as a single entity. Assets, liabilities, income and expenses are combined into common system management reports. Such reporting characterizes the property and financial position of the entire group of companies as of the reporting date, as well as the financial results of its activities for the reporting period. If the holding company consists of companies that are not related to each other at the operational level, then the task of consolidating management reporting is solved quite simply. If business transactions are carried out between the companies of the holding, then in this case everything is not so obvious, because it will be necessary to exclude mutual transactions in order not to distort data on income and expenses, assets and liabilities at the holding level in the consolidated financial statements. In the budget policy of the company, it is necessary to fix the rules and principles for the elimination of VGO.

Therefore, it is more appropriate to use Information Systems. For these purposes, you can apply the system "WA: Financier". The system makes it possible to eliminate intra-company turnovers at the level of primary documents and quickly obtain correct information, which simplifies and speeds up the process of generating management reporting, and minimizes errors associated with the human factor. At the same time, reconciliation of intragroup turnovers, their elimination, corrective entries and other operations are carried out automatically.

An example of management reporting: Company A owns company B 100%. Company A sold goods for the amount of 1500 rubles. The purchase of this product cost company A 1000 rubles. Company B paid for the delivered goods in full. At the end of the reporting period, company B did not sell the goods and it is listed in its financial statements.

As a result of consolidation, it is necessary to eliminate the profit (500 rubles) that the company has not yet received and reduce the cost of inventory (500 rubles).

To exclude GGO and profits that company B has not yet earned. You need to make adjustments.

The result of the consolidation of management reporting

Figure 4. Forecast balance (management balance).

Definition of key performance indicators (KPI - Key performance indicators)

Introduction of key benchmarks allows you to manage financial responsibility centers by setting limits, standard values or limiting limits of accepted indicators. The set of performance indicators for individual CFDs significantly depends on the role of this responsibility center in the management system and on the functions performed. The values ​​of the indicators are set taking into account strategic plans companies, development of individual business lines. The scorecard can take a hierarchical structure, both for the company as a whole, and with detailing to each center of financial responsibility. After detailing the top-level KPIs and transferring them to the levels of the CFD and employees, they can be linked to staff remuneration, etc.

Figure 5. An example of using key company indicators.

Control and analysis of management reporting and execution

For the execution of budgets included in management reporting, three areas of control can be distinguished:

• preliminary;
• current (operational);
• final.

Target preliminary control- this is the prevention of potential violations of the budget, in other words, the prevention of unreasonable expenses. It is carried out before business transactions. The most common form of such control is the approval of requests (for example, for payment or shipment of goods from a warehouse).

current control budget execution implies regular monitoring of the activities of financial responsibility centers to identify deviations in the actual indicators of their activities from the planned ones. It is carried out daily or weekly according to operational reporting.

Final control budget execution is nothing more than an analysis of the implementation of plans after the close of the period, an assessment of the financial and economic activities of the company as a whole and by objects of management accounting.

In the process of budget execution, it is important to identify deviations at the earliest stages. Determine which methods of preliminary and current budget control can be used in the company. For example, introduce procedures for approving requests for payment or release of materials from a warehouse. This will help avoid unnecessary expenses, prevent budget overruns and take action in advance. Be sure to regulate the control procedures. Create a separate budget control regulation. Describe in it the types and stages of audits, their frequency, the procedure for reviewing budgets, key indicators and their deviation ranges. This will make the control process transparent and understandable, and increase the performance discipline in the company.

Figure 6. Monitoring the implementation of planned indicators of management reporting.

Step 3. Designing and approving the financial structure of the company

This stage includes work on the formation of classifiers of budgets and budget items, the development of a set of operating budgets, planning items and their interconnections, the imposition of types of budgets on the organizational links of the company's management structure.

Based on the organizational structure of the company, a financial structure is developed. As part of this work, financial responsibility centers (CFRs) are formed from organizational units (divisions) and a model is built financial structure. The main task of building the financial structure of an enterprise is to get an answer to the question of who and what budgets at the enterprise should be. A properly built financial structure of an enterprise allows you to see the “key points” at which profits will be formed, accounted for and, most likely, redistributed, as well as control over the company’s expenses and incomes.

Center for Financial Responsibility (CFD)- an object of the company's financial structure, which is responsible for all financial results: revenue, profit (loss), costs. The ultimate goal of any CFD is profit maximization. For each CFD, all three main budgets are compiled: income and expenditure budget, cash flow budget and forecast balance (management balance). As a rule, individual organizations act as CFRs; subsidiaries of holdings; separate subdivisions, representative offices and branches large companies; regionally or technologically separate activities (businesses) of diversified companies.

Center for Financial Accounting (CFU)- an object of the financial structure of the company, responsible only for some financial indicators, for example, for income and part of the costs. For the DFS, income and expenditure budgets or some private and functional budgets (budget labor costs, sales budget). The main production workshops participating in single technological chains at enterprises with a sequential or continuous technological cycle can act as a digital financial institution; production (assembly) shops; sales departments and divisions. Financial accounting centers may have a narrow focus:

• center contribution margin(profit center)- a structural unit or a group of units whose activities are directly related to the implementation of one or more business projects of the company, ensuring the receipt and accounting of profit;
• revenue center- a structural unit or a group of units whose activities are aimed at generating income and do not provide for profit accounting (for example, a sales service);
• investment center (venture center)- a structural unit or a group of units that are directly related to the organization of new business projects, the profit from which is expected in the future.
• cost center- an object of the financial structure of the enterprise, which only responsible for expenses. And not for all expenses, but for the so-called regulated expenses, the spending and savings of which the management of the central heating center can control. These are divisions serving the main business processes. Only a few support budgets are prepared for the CZ. Auxiliary services of the enterprise can act as a central lock ( maintenance department, security service, administration). Cost center may also be referred to Cost center (cost center).

Figure 7. Designing the financial structure of the company.

Step 4. Formation of the budget model

There are no strict requirements for the development of a classifier for internal management reporting. Just as no two companies are exactly the same, so too are no two budget structures the same. Unlike formalized financial reporting: income statement or balance sheet, management reporting does not have a standardized form that must be strictly followed. The structure of internal management reporting depends on the specifics of the company, the budget policy adopted in the company, the wishes of the management on the level of detail of articles for analysis, etc. We can only give general recommendations on how to draw up the optimal structure of management reporting.

Figure 8. Scheme of interaction budget forms on the example of the simplest budget model.

Classification of items on the example of the Statement of cash flows

Figure 9. Execution of the cash flow budget (CF (BDDS)).

Step 5. Approval of the budget policy and development of regulations

The budget policy is formed in order to develop and consolidate the principles for the formation and consolidation of indicators for these items and methods for their assessment. This includes: the definition of a time period, planning procedures, budget formats, an action program for each of the participants in the process. After the development of the budget model, it is necessary to proceed to the regulation of the budget process.

It is necessary to determine which budgets, and in what sequence, are formed in the company. For each budget, it is necessary to allocate a person responsible for preparation (a specific employee, CFD) and a person responsible for budget execution (direction manager, head of the CFD), set limits, normative values ​​or limiting boundaries for the performance indicators of the CFD. It is imperative to form a budget committee - this is a body created for management purposes budget process control over its implementation and decision-making.

Figure 10. Phases of enterprise budgeting planning.

Step 6. Audit of accounting systems

At the stage of development and approval of the composition of the company's management reporting, it is also necessary to take into account that the classifier of budget items should be sufficiently detailed to provide you with useful information about the company's income and expenses. At the same time, you need to understand that the more levels of detail will be allocated, the more time and effort will be required to compile management reporting, budgets and reports, but the more detailed analytics you can get.

It is also necessary to take into account that as a result of the development of a management reporting methodology, it may be necessary to adapt accounting systems, because. in order to analyze the execution of budgets, planned indicators will have to be compared with the available factual information.

Step 7: Automation

This stage includes work on choosing a software product, creating terms of reference, implementation and maintenance of the system.

Management reports, their purpose

Distinctive features of management reporting from the usual accounting

Financial analysis and planning based on management reports

It was always necessary to generate management reports, it's just that the term "management" was not applied to such internal reports.

Management reporting is a set of internal reports of the enterprise, which are formed on a voluntary basis. The main purpose of their compilation is to obtain reliable information about the state of affairs of the enterprise on a specific date, for example, to provide the management or owners of the enterprise.

The legislation of the Russian Federation does not provide for unified forms of management reporting due to the voluntary nature of its formation, therefore, each enterprise has the right to independently develop reporting forms. As a rule, the usual forms are taken as the basis financial statements.

The main difference between accounting and management reporting is in the recipient, the end user. Mandatory accounting reporting is necessary for managers - to analyze the activities of the enterprise for the past reporting period, for auditors and the tax service - to verify the correctness of the reflection of the facts of activity.

Voluntary management reporting is required exclusively for the head of the enterprise, his deputies or other authorized persons ( management staff and managers, for example), as well as for the owners of the enterprise to analyze the work of the enterprise and plan further activities in the short or long term.

In addition, accounting reports are prepared for the whole enterprise, and management reports, if necessary, are presented in the context of structural divisions, separate divisions, subsidiaries, etc. Such detailing makes it possible to identify problem areas.

Note!

Management reporting experts note that it is not worth overloading reports with information, otherwise the document will be difficult to perceive.

The frequency of compilation and the composition of management reporting depend solely on the requirements of end users (for example, management). Reports can be generated daily, weekly, monthly, quarterly and yearly.

As a rule, management reports include planned and actual indicators. This makes it possible to carry out a plan-fact analysis and calculate relative coefficients that characterize the efficiency of financial and economic activities.

This is not a complete list of reports that can be included in management reporting. We repeat that the purpose and content of the reports directly depend on the requirements of the recipients. Therefore, the following secondary management reports can be generated:

• on the actual cost of production in comparison with planned indicators;
• on execution production plan;
• execution of the marketing plan;
• for work in progress;
• on stocks of raw materials and finished products;
• O accounts receivable;
• about accounts payable, etc.

Income statement

This is perhaps the most important management report. It reflects information about the real profit / loss of the enterprise.

Report Form financial results(Form No. 2) of financial statements was approved by Order of the Ministry of Finance of Russia dated July 2, 2010 No. 66n (as amended on April 6, 2015) “On Forms of Accounting Statements of Organizations” and has a fairly detailed form.

In a management report, it is permissible both to group some lines of the report, and, conversely, to give a more detailed breakdown (first of all, this concerns the expenses of the enterprise).

The final recipients of the document can also request details on revenue (for example, broken down by type of product).

A fragment of the management report on financial results - in table. 1.

Table 1

Fragment of the management report on financial results, thousand rubles.

Name	Meaning
Cost of sales
Gross profit(lesion)
Profit (loss) from sales
Percentage to be paid
other expenses
Current income tax
Net income (loss)

The main thing that we see from this report is the positive financial result of the enterprise: the revenue exceeds the costs of the enterprise, which it incurred for the production and sale of products.

However, every enterprise is constantly striving to increase profits. For this, as a rule:

• increase the selling price of a unit of production (which, as a result, increases the amount of revenue);
• reduce the cost of sales (with the same amount of revenue, this increases profit, including profit per unit of production).

When planning financial results on the basis of management reporting, the actual and planned sales volumes are taken into account. Such planning is rather conditional, since the cost of sales includes both fixed and variable costs, and the former practically do not change with an increase or decrease in the volume of sales.

We will carry out preliminary calculations for the preparation of a planned report on financial results.

We know that the revenue in the amount of 68,074 thousand rubles. received from the sale of 257 units. products at a price of 264,880.00 rubles. per unit (the analyzed enterprise produces one type of product).

Next reporting period it is planned to sell 294 units.

Thus, the planned revenue will amount to 77,875 thousand rubles. (264,880.00 rubles × 294 units) at a cost of 64,767 thousand rubles. (220,295.70 rubles × 294 pcs.).

Forecast report on financial results - in table. 2.

table 2

Forecast report on financial results, thousand rubles

Name	Meaning
Cost of sales
Gross profit (loss)
Profit (loss) from sales
Percentage to be paid
other expenses
Profit (loss) before tax
Current income tax
Net income (loss)

With such planning, profitability indicators (products, enterprises, sales, etc.) remain unchanged, because when forecasting, only fluctuations in sales are taken into account.

We calculate the main indicators of profitability, which characterize the profitability of the enterprise and the economic feasibility of its activities.

Profitability of core business (R 1) is the ratio of profit before tax to the proceeds from the sale of products. This ratio shows what part of profit is in the composition of revenue.

In our case R 1 = 10,078 / 68,074 × 100% = 11,728 / 77,875 × 100% = 15%.

The higher the profit margin in relation to revenue, the more profitable the enterprise is considered.

Product profitability (R 2) is the relation net profit to full cost. This indicator is very important for analyzing the effectiveness of activities: it shows how profitable the products are, how much profit the company received from the total costs of its production.

In our case, R2 = 8062 / 56616 × 100% = 9382 / 64767 × 100% = 15%.

For your information

At the stage of analyzing management reporting and planning activities in the short or long term, problem areas can be identified, such as high costs for the production of products, low revenue, etc.

Based on the results of the analysis, they form a policy further development enterprises make decisions, for example, to refuse to produce any type of product, to expand the sales market, optimize costs, increase / decrease the retail price, etc.

Management balance

The form of the management balance sheet is not approved at the legislative level, therefore we recommend using the form of the usual balance sheet.

For your information

Depending on the wishes of the end user, you can delete unnecessary balance lines, group individual items or, conversely, describe them in detail (for example, borrowed funds, if their share in the balance sheet currency is significant).

An example of a management balance sheet is in Table. 3.

Table 3

Management balance, thousand rubles

Assets	Meaning
I. Non-current assets
Intangible assets
fixed assets
Total for Section I
II. current assets
Accounts receivable
Total for Section II
BALANCE
LIABILITY
III. Capital and reserves
Authorized capital
Reserve capital
Total for Section III
Total for section IV
Borrowed funds
Accounts payable
Section V total
BALANCE

We made the usual form of the balance sheet simpler - we removed articles with zero values, with the exception of section IV, in order to focus on the fact that the company has no long-term obligations.

Based on the management balance sheet, the main indicators of the financial condition of the enterprise are calculated. On this stage not needed complex analysis reporting - it is enough to focus on the problem areas of the enterprise:

Security ratio own funds (To OSS) is calculated as the ratio of the difference equity and non-current assets to current:

TO OSS \u003d (Total for Section III - Total for Section I) / Total for Section II,

in our example, K OSS \u003d (11,042 - 4,806) / 40,875 \u003d 0.15.

The value of the indicator indicates an unsatisfactory balance sheet structure and a high probability of insolvency of the enterprise as a whole.

About good financial condition enterprises and the possibility of pursuing an independent financial policy for them is indicated by the value of the indicator more than 0.5.

Debt ratio(K h) is calculated as the ratio of the total debts of the enterprise to its own funds:

K z \u003d (Total for section IV + Total for section V) / Total for section III;

at the analyzed enterprise K z = 34,639 / 11,042 = 3.14.

The normative value of the indicator is below 1. Otherwise, they say that the amount of borrowed funds exceeds their own.

Based on the results obtained, it is possible to predict the balance sheet model for the next reporting period, for example, using the percentage of sales method.

To compile it, you need the following data:

• on actual sales for the reporting period (for our example - 257 units), for which the management balance sheet was compiled;
• about the planned sales volume in the next period (for our example - 294 units).

The coefficient of change in sales volume (K meas) is calculated as follows:

K meas = Q 2 / Q 1 ,

Where Q 1 - the volume of sales of products for the previous period, pieces;

Q 2 - the volume of sales of products for the planned period, pcs.,

in our case K meas = 294/257 = 1.144.

The amount of net profit according to the forecast (see Table 2) is 9382 thousand rubles. provided that the company will not distribute profits as dividends due to high level short-term liabilities that need to be repaid.

Net profit can be used, for example, to increase retained earnings (5486 thousand rubles) and to pay off liabilities (3896 thousand rubles).

Based on this methodology, we will make a forecast balance (Table 4).

Table 4

Forecast balance, thousand rubles

Assets	Meaning
I. Non-current assets
Intangible assets
fixed assets
Total for Section I
II. current assets
Accounts receivable
Cash and cash equivalents
Total for Section II
BALANCE
LIABILITY
III. Capital and reserves
Authorized capital
Reserve capital
Retained earnings (uncovered loss)
Total for Section III
IV. long term duties
Total for section IV
V. Current liabilities
Borrowed funds
Accounts payable
Section V total
BALANCE

Based on the proposed changes, we calculate the coefficients:

TO OSS \u003d (16,528 - 5,498) / 46,761 \u003d 0.24;

Kz \u003d 35,731 / 16,528 \u003d 2.16.

So, thanks to the measures formed on the basis of management reporting, it was possible to increase the independence of the enterprise from borrowed sources of financing and improve the ratio of own and borrowed funds.

To consolidate the effect, it is worth analyzing the profitability of the enterprise and finding an opportunity to increase the level of profit to strengthen financial independence.

Income and expense statement

The statement of income and expenses allows you to analyze the volume of cash flows, proceeds from the sale of products and the costs of its production and sale, calculate coefficients that characterize business activity And financial stability enterprises.

First, the enterprise forms a planning document on future income and expenses, and on its basis - the actual management report. Based on it, planned and actual indicators are analyzed.

An example of an income and expense statement is presented in Table. 5.

Table 5

Management Income and Expenditure Statement

No. p / p	Name of income (expenses)	Plan	Fact
	Income	18 560,00	16 704,00
	Advance payment to Beta LLC
	Advance payment to Gamma LLC
	Advance payment to Omega LLC
	Final settlement of Beta LLC
	Final settlement of Gamma LLC
	Final settlement of Omega LLC
	Expenses
	Payment wages+ insurance premiums
	Advance payment to the supplier LLC "Norman"
	Advance payment to the supplier Diksit LLC
	Final settlement with the supplier Norman LLC
	Final settlement with the supplier Dixit LLC
	Rent
	Public utilities
	Telephony and internet costs
	Depreciation deductions

When presenting management reports to management, one must be prepared to answer questions. For example, if there is no income - “why?” In this case, it is necessary to find out why the funds were not received - there were no shipments, the customer delays payment, etc.

If the expense part of the report has changed a lot, it may be necessary to prepare a more detailed report on certain items.

An analysis of the income and expense statement will allow you to understand in advance that in a certain period there will not be enough funds in the account, for example, to advance to suppliers. Then the management will have the opportunity to quickly respond to the situation, for example, to agree on the postponement of the advance payment.

Naturally, such reports are constantly adjusted depending on changes in planned payments.

Cash flow statement

The cash flow statement (ODDS) contains information on cash flows (according to the settlement account and / or cash desk), reflecting both planned and actual receipts and expenditures of funds.

The structure is similar to the cash flow budget (BCDS), distinguishing feature- the presence of actual indicators characterizing the execution of the budget.

ODDS allows you to assess the financial capabilities of the enterprise, track the availability of funds in the account and in the cash desk of the enterprise, balance the receipts and expenditures of funds, and therefore control the liquidity and solvency of the enterprise.

The ODDS, like the BDDS, includes cash flows from current investment and financial transactions.

Current cash flows- these are receipts from the sale of products, rental payments, expenses for paying for the services of suppliers and contractors, remuneration of employees of the enterprise, tax payments, etc.

Investment cash flows- these are transactions associated with the acquisition, creation or disposal of non-current assets, for example, the cost of development and technological work, granting loans, payments in connection with the acquisition of shares, etc.

To cash flows from financial transactions include receipts from operations related to raising financing (cash deposits, payments in connection with the repurchase of shares, payment of dividends, redemption of promissory notes, etc.).

In order to effectively plan spending and cash receipts, it is necessary to conduct a plan-fact analysis, especially in a crisis situation, when payment discipline worsens and the company may not have enough money to make payments.

Management ODDS increases the efficiency of planning and budgeting in general.

An example of a cash flow statement is presented in Table. 6.

Table 6

Cash flow statement for July 2017, thousand rubles

No. p / p	Index	Plan	Fact
	Balance at the beginning of the month	12 200,00	12 200,00
	Cash receipts
	Income from core activities
	Customer advances
	Gamma LLC, contract No. 212/T dated 06/28/2017
	Revenue from the sale of goods (works and services)
	Alfa LLC, contract No. 12 of 01/30/2017
	Gamma LLC, contract No. 212/T dated 04/28/2017
	Beta LLC, contract No. 17 dated 03/24/2017
	Omega LLC, contract No. 1 dated 12/23/2016
	Norma LLC, contract No. 7 dated February 16, 2017
	Income from financial activities
	Proceeds from investment activities
	Spending money
	Spending on core business
	Settlements with suppliers
	Payments for components
2.1.1.1.1	Product No. 1
	Plant them. I. I. Ivanova
	JSC Alfa
	OOO "Diagonal"
	JSC "Yaroslavl"
	Other providers
2.1.1.1.2	Item no. 2
	Plant them. I. I. Ivanova
	JSC Alfa
	OOO "Diagonal"
	Other providers
	Salary
	Division No. 1 (Moscow)
	Insurance premiums
	Division No. 1 (Moscow)
	Division No. 2 (St. Petersburg)
	General running costs
	Division No. 1 (Moscow)
	Communication services
	Wages (account 26)
	Insurance premiums (account 26)
	Fare
	other expenses
	Communication services
	Wages (account 26)
	Insurance premiums (account 26)
	Consumables, office equipment
	Transport costs
	other expenses
	General production expenses
	Division No. 1 (Moscow)
	Wages (account 25)
	Insurance premiums (account 25)
	Tools, materials for production purposes
	other expenses
	Division No. 2 (St. Petersburg)
	Wages (account 25)
	Insurance premiums (account 25)
	other expenses
	taxes
	income tax
	Property tax
	Spending on financial activities
	Spending on investment activities
	Cash flow from core business
	Cash flow from financial activities
	Cash flow from investment activities
	Surplus / shortage of funds at the end of the month
	Cash balance at the end of the month

The first thing that the head or other end user of the ODDS will pay attention to is the negative value of the cash flow indicator.

For your information

Cash flow is a calculated indicator for each type cash flow(current, financial and investment activities), which is the difference between receipts and expenditures of funds.

A negative cash flow indicates that cash receipts are lower than expenditures. And if the company did not have a cash balance from the previous month, it would not be able to make payments.

In the example, the ODDS is broken down by product manufactured and separate divisions(Moscow and St. Petersburg). Management may require a more detailed breakdown, for example, if planned figures differ significantly from actual figures.

Based on the ODDS, for example, for a month, the cash flow for the next month is predicted, taking into account the expected receipts.

An analysis of the actual spending of funds for a month allows you to classify expenses in terms of constancy and obligation, to form a certain “constant”, that is, the amount of cash flow that is needed monthly.

On the basis of payment registers and payment calendars, in terms of advance payments and final settlements from customers, the income part of the ODDS is formed.

Such cash flow planning ensures the effectiveness of cash flow management.

Note!

The plan-fact analysis of the ODDS allows you to set a limit on the balance of funds at the end of the month in order to ensure the solvency of the enterprise at the beginning of the next reporting month and in case of insolvency of counterparties.

Actual production cost report

One of the main tasks of each enterprise is to form such a market price that it covers the costs of producing the products sold, while being competitive, consistent with the quality of the products and ensuring market demand.

After the market or contract fixed price is formed, it is necessary to try to keep the cost price - if the cost price exceeds the price, the enterprise will not receive profit. You can control the situation with the help of managerial actual production cost statement(Table 7).

Table 7

Report on the actual cost of production, rub.

No. p / p	Costing article	Plan	Fact	Changes, +/-
	Material costs
	Insurance premiums
	overhead costs
	General running costs
	non-manufacturing expenses
	Full cost
	Price without VAT

This report reflects the deviations of the planned costing indicators from the actual ones. And if they are significant, additional analysis is needed to find out the reasons.

As a rule, at this stage of compiling management reporting, a group of costs is also established that have the largest share in the composition of the cost and, on the basis of this, a cost reduction policy is formed to increase the profitability of products. For example, in order to reduce material costs, they renegotiate contracts with suppliers for more favorable conditions or looking for new ones; in order to reduce the wage fund, they reduce the number of workers, involve third-party organizations in the performance of work, etc.

Taking into account measures to optimize the cost structure, an updated structure is planned for the next reporting period.

Consider an example of compiling a planned calculation of the cost of production, taking into account the growth in volumes while maintaining general business expenses (as an unchanging component of the cost structure, regardless of volume fluctuations) at the same level (Table 8).

Actual general business expenses per unit of output (see Table 7) - 41,642.70 rubles. with a sales volume of 257 units. products in the reporting period. Consequently, the total amount of general business expenses is 10,702,173.90 rubles. (41,642.70 rubles × 257 pcs.).

The planned sales volume for the next reporting period is 294 units. Let's divide the total amount of general business expenses (10,702,173.90 rubles) by the planned volume, we will get specific general business expenses per unit of output (36,401.95 rubles).

The remaining cost items are accepted for the planned period unchanged according to the actual data of the cost report.

Table 8

Planning the cost structure taking into account the proposed measures, rub.

No. p / p	Name of costing items	Fact	Plan	Changes, +/-
	Material costs
	Labor costs of key production workers
	Insurance premiums
	overhead costs
	General running costs
	Production cost
	non-manufacturing expenses
	Full cost
	Price without VAT

We left unchanged all cost items included in the cost, with the exception of general business expenses, which conditionally do not change depending on the growth in sales volumes.

Thanks to the optimization, the planned specific profit per unit of production, while maintaining the retail price at the same level, will be increased by 5,240.75 rubles, by the total forecast sales volume - 1,540,780.50 rubles.

If no measures are planned to optimize costs, the planned cost structure, as a rule, takes actual data for the previous period.

Report on receivables and payables

The report on receivables and payables can be combined into one management document or divided into two separate documents. It allows you to assess the solvency of the enterprise and track the turnover of debts using relative ratios.

The very fact of the formation of receivables and payables is inevitable due to the time gap between payments and the transfer of finished products.

For your information

Accounts receivable - funds owed to the enterprise by debtors; Accounts payable is money that a company owes to its creditors.

The report on receivables and payables is compiled on a specific date, and the final recipient sees information about the status of settlements with counterparties and can quickly monitor the fulfillment of obligations.

An example of a managerial report on receivables and payables of the enterprise- in table. 9.

Table 9

Report on receivables and payables as of 21.07.2017

No. p / p	Debtors/ Lenders	Amount, rub.	Shipment		Payment made (advance)		Amount of debt as of 21.07.2017
			date	Amount, rub.	date	Amount, rub.
	Debtors
	OOO "Beta"
	Lenders
	OOO "Norman"

Analyzing the report data, the manager will see that on 06/09/2017 the enterprise advanced 80% of Norman LLC (880,000.00 rubles). The products were shipped in full on 06/15/2017. But as of July 21, 2017, the company had not yet fully paid off - a debt in the amount of 220,000.00 rubles.

At the same time, Beta LLC made an advance payment (50%) in the amount of 5,500.00 thousand rubles, the products were shipped in full on 06/23/2017. But the final payment of 50% was not received by the enterprise.

As a rule, contracts with counterparties specify the terms of delivery and the time interval between delivery and final settlement (for example, final settlement is carried out within five working days from the date of acceptance by the buyer of the delivered products). For violation of the terms of payment, sanctions are assumed (for example, a penalty in the amount of 0.1% of the amount of the delayed payment and for each day of delay).

Therefore, in the event of claims from creditors, the enterprise will be forced not only to make the final settlement, but also to pay penalties, and these are additional unforeseen costs.

Other management reports

Management report on the execution of the production plan

Contains planned and actual figures. At the request of the final recipient, it is detailed by workshops.

Ideally, these reports should be generated on a monthly basis. This will allow you to control the execution of the annual production program, to see the overall production picture.

Let us also pay attention to the fact that, as a rule, awards production workers directly dependent on the implementation of plans. Therefore, it is also possible to provide for forms of an explanatory note in case of non-fulfillment of the production plan, which should be drawn up by the heads of workshops or other authorized persons of the enterprise, be sure to indicate the reasons for the failure to meet deadlines (for example, the identification of additional malfunctions, lack of stock necessary materials to complete production, etc.).

Management report on the execution of the marketing plan

The marketing plan (forecast of sales volumes), as a rule, is made by the marketing department.

The report on the execution of the marketing plan reflects planned and actual indicators. Fluctuations in plan-actual values ​​within 10% are considered acceptable. Otherwise, it is necessary to adjust the plan taking into account the identified deviations.

In addition, it is necessary to analyze the causes of deviations. Perhaps a competitor has entered the market with more low prices, buyers are not able to purchase goods at the offered prices, etc.

The management report on the execution of the marketing plan allows you to "keep abreast" regarding fluctuations in external environment and quickly respond to changes:

• monitor the actions of competitors (including potential ones);
• increase or maintain the competitiveness of the enterprise;
• track the demand for products and the solvency of buyers.

Management report on work in progress

Work in progress (WIP) is a product that has not passed all production cycle. Specific gravity WIP costs in general expenses businesses can be quite significant.

As a rule, the management report on work in progress is detailed - all costs included in the cost price (material costs, wages, overheads, etc.), the percentage of work completed and the expenditure of funds according to the standard are indicated (for example, materials were used in the amount of 1000.00 rubles ., and the standard for finished products is 2000.00 rubles, therefore, the percentage of spending is 50).

The report may also include data on the complexity of the work.

Report on stocks of raw materials and materials

Stocks of raw materials and materials must ensure uninterrupted production process.

Often suppliers offer discounts when buying large quantities of goods, raw materials, components. But businesses should be aware that the cost of maintaining and storing these items may exceed the benefit gained from the discount. At the same time, by buying large quantities, you can save on transportation costs.

As mentioned earlier, one of the reasons for not meeting the production plan may be the lack of materials in the warehouse. Therefore, a report on the stocks of raw materials and materials must be generated in accordance with the production plan.

This report is usually generated by supply structural units enterprises (material supply department, material support service, etc.).

When planning stocks of raw materials and materials, it is necessary to take into account the data of the production plan (usually annual) and the norms for the consumption of raw materials and materials per unit of output. You should also provide for an insurance stock of materials in case of changes in the external environment (growth in demand, an increase in the delivery time of materials, an increase in the cost of goods and materials, etc.).

The management report on the stocks of raw materials and materials should also reflect the actual indicators with reference to the production plan.

Finished Goods Inventory Report

It is necessary to form stocks of finished products to ensure the continuity of the production process. But even here there are pitfalls: an increase in stocks of finished products increases the cost of their storage. And in the event of a decline in demand, this finished product may not be in demand at all. The situation will only get worse if the products are perishable and have a certain expiration date.

The enterprise should establish such an optimal volume of stocks of finished products that will meet the needs of consumers.

The report includes planned and actual indicators. Sometimes managers require additional information - the planned volume of production and sales, so that all the movements of finished products are presented in one management report.

In addition, similarly to the report on the stocks of raw materials and materials, here you also need to take into account the safety stock in case of defects in production, unforeseen and force majeure circumstances, as well as in case of deviations of the sales forecast from actual indicators.

Management accounting is intended to represent the actual state of affairs in the enterprise and, accordingly, to make management decisions based on these data. This is a system of tables and reports with convenient daily analytics on cash flow, profit and loss, settlements with suppliers and buyers, production costs, etc.

Each company chooses the method of management accounting and the data necessary for analytics. Most tables are created in Excel.

Examples of management accounting in Excel

Main financial documents enterprises - cash flow statement and balance sheet. The first shows the level of sales, the cost of production and sale of goods for a certain period of time. The second is the assets and liabilities of the company, equity. Comparing these reports, the manager notices positive and negative trends and makes management decisions.

Reference books

Let's describe the account of work in a cafe. The company sells products own production and purchased items. There are non-operating income and expenses.

To automate data entry, an Excel management accounting table is used. It is also recommended to compile reference books and journals with initial values.

If an economist (accountant, analyst) plans to list income by item, then the same reference book can be created for them.



Convenient and clear reports

It is not necessary to fit all the figures on the work of the cafe in one report. Let it be separate tables. And each occupies one page. It is recommended to widely use such tools as "Drop-down lists", "Grouping". Let's consider an example of tables of managerial accounting of a restaurant-cafe in Excel.

Revenue Accounting

Let's take a closer look. The resulting indicators are found using formulas (usual mathematical operators are applied). Table filling is automated using drop-down lists.

When creating a list (Data - Data Check), we refer to the Directory created for income.

Cost accounting

The same methods were used to complete the report.

Gains and losses report

Most often, for management accounting purposes, the income statement is used, rather than separate income and expense reports. This provision is not standardized. Therefore, each company chooses independently.

The generated report uses formulas, auto-completion of articles using drop-down lists (links to Directories) and data grouping to calculate results.

Analysis of the cafe property structure

The source of information for analysis is the asset of the Balance (sections 1 and 2).

For a better perception of information, we will make a diagram:

As the table and figure show, the main share in the property structure of the analyzed cafe is occupied by non-current assets.

By the same principle, the liabilities of the Balance are analyzed. These are the sources of resources at the expense of which the cafe carries out its activities.

Should provide all users with the information they need to make decisions. Therefore, it is necessary to determine both the list of management reports and their content.

It should be noted that this work, unfortunately, does not have any clear and unambiguous technology. We can say that the development of management reporting forms is a kind of art.

After all, you need to be able to develop such formats of management reports that, on the one hand, would contain really useful information, and on the other hand, the cost of obtaining this information would be acceptable for the company's management.

By the way, questions of the ratio of utility and cost will arise throughout the project on setting up and automating management accounting.

Thus, this article discusses all the practical aspects related to the development of a management reporting system. In particular, when developing management reporting formats, it is necessary to take into account the main characteristics that they must satisfy.

In addition, this article presents a classification of management reporting and indicators that may be contained in it.

Characteristics of management reporting

Management reporting, in general, can be characterized only by qualitative requirements. While some companies may use quantitative parameters.

Perhaps the most common quantitative characteristic of management reporting is the number of pages in a management report. It is believed that one report should be placed on one page, otherwise it will be very difficult to analyze it. True, it does not specify what page format we are talking about and what font.

I have seen reports printed on an A3 page in very small print at some companies that strictly followed this principle. Yes, formally these reports were placed on one page, but it was very difficult to use them.

In general, it is not necessary to apply this quantitative restriction so straightforwardly. If the management report is placed on two pages of A4 format, and at the same time, indeed, none of the data of such a management report is superfluous, then it is not at all necessary to print it in very small print in order to place it on one page.

Although quite often, upon closer examination of such long management reports, it turns out that they can quite easily be placed on one page. One company, for example, had a management report that, despite the use of very small print, barely fit on two pages.

Moreover, significant items of the management report were not detailed enough, and less significant items were presented with excessive detail. After a simple procedure (reduced excessive detailing of non-essential items), the management report fit on one page without any problems, and it became much easier to use in practice.

Sometimes management reporting is made “big”, because, just in case, they include the maximum possible detail in it. For example, such an article of a management report as "Revenue from sales" in the sales report can be printed with a breakdown to groups, or it can be printed with a breakdown to a specific position.

It is clear that in the second case, the management report can turn out to be much more cumbersome. By the way, in order to avoid such problems with the visualization of management reporting, it can be viewed in in electronic format using a software product that, if necessary, allows you to expand a particular hierarchical indicator.

So, if we return to the consideration of the qualitative characteristics of management reporting, then among the most important are the following:

understandability;

significance;

reliability (reliability);

comparability.

Clarity of management reporting

It should be noted right away that knowing the goals of preparing a specific management report can significantly increase its understandability for the user. The goals of preparing management reports should be determined even when developing a classifier for management reporting.

So, it is obvious that management reporting should be understandable to users, but one important caveat must be made here. In order to understand management reporting, users must have certain knowledge. In particular, you need to know at least the basics of economics and finance.

Of course, company managers are not at all required to know in detail the methodology for generating management reporting, but they must understand the meaning of each indicator of the management report they use. This knowledge includes, among other things, knowledge of management accounting policy, since the values ​​of most indicators of management reporting directly depend on it.

Therefore, within the framework of the project for setting up and automating management accounting, training should be planned, including for company managers. By the way, the lack of training in such projects has a very negative impact on the final results, but, nevertheless, very often this issue is given too little attention.

Thus, the information contained in management reporting should be understandable to users familiar with the principles of management accounting and the basics of economics and finance.

The Importance of Management Reporting

In addition to comprehensibility, management reports should also have one more important property - to contain meaningful information. It would seem obvious that management reporting is prepared to make decisions, and not just to be. Nevertheless, quite often management reports are overloaded with completely unnecessary data.

Again, one of the reasons for such information overload of management reporting is the lack of necessary preparation and planning of the management accounting project.

In particular, the managerial reporting classifier is not thought out in advance, the goals of the reports are not defined, etc. As a result, it turns out that gradually almost all management reports are littered with completely unnecessary information. It means that it is unnecessary for this management report.

By the way, fans of adding additional information to management reports, so to speak, can take advantage of the opportunities software products, which allow you to display not all indicators. On the one hand, you can immediately provide all potentially interesting indicators for a particular report in the settings, but, on the other hand, when you visualize it, highlight only a part of them.

It should be noted that the significance of a particular indicator in management reports may depend on the period for which it is compiled. For example, in one company dealing with road construction, the management apparatus demanded from its production units (DRSU - road repair construction sites), scattered throughout the region, daily management reporting.

It is clear that remote objects require operational control. But, as it turned out in the analysis of management reporting, among the indicators that were collected every day, no more than 30% were really significant. The preparation of all other indicators of daily reports was simply an inefficient use of the time of specialists working in DRSU.

So, the information contained in management reporting should be useful for decision-making and help evaluate past, present and future events, confirm or correct past estimates.

Reliability (reliability) of management reporting

The reliability of management reporting is also a completely logical characteristic, like the previous two. Although one of the differences between management accounting and accounting is that very scrupulous accuracy is not always required here.

After all, sometimes it is much more important for a manager to receive a management report that is not absolutely accurate, but within the required timeframe, than a report that is verified to the last penny, but with a delay. This remark does not mean at all that accuracy does not matter at all for management accounting.

But the most important thing is that management reporting should disclose the actual activities and state of affairs in the company, be free from significant errors.

There are certain conditions for ensuring the reliability of management reporting:

truthfulness;

neutrality;

dominance of essence over legal form;

prudence (conservative).

Truthfulness of management reporting

Truthfulness means that management accounts must truthfully reflect the transactions and other events on which they are based. Insufficient veracity may be due to difficulties in identifying events and evaluating them.

This can happen, for example, when filling in analytics values ​​during data entry into the accounting database, especially in cases where it is impossible to determine analytics based on primary documents.

Or it may turn out that the original primary document did not arrive on time, and the "internal" primary contained errors.

Neutrality of management reporting

Neutrality implies that the information contained in management reporting should be unbiased and should not influence decision-making in order to achieve the planned result. This can happen quite often when managers rely too much on their intuition.

That is turnkey solution they already have in their head, and with the help of a management report, they only want to confirm its correctness. In such cases, the management report may be "adjusted" to the already prepared result. Naturally, here we are not talking about some kind of conscious distortion of the data.

"Adjustment" may consist, for example, in the exclusion from the management report of indicators that clearly show the disadvantages of a prepared or already implemented solution. Another way to "fit" may be to use a different accounting policy when calculating some indicators.

After all, the same indicators can have different values ​​when using different principles for recognizing and evaluating business transactions. True, this method of "fitting" can be successfully applied, mainly in the development of planned management reporting (budgets), because. actual reports can only be obtained on the basis of information already entered, which means that it is quite difficult to change management accounting policies.

True, the management accounting policy can initially be chosen in such a way that when using it, the indicators that are of interest to the owners of the company would look more attractive.

Predominance of essence over legal form of management reports

The predominance of the essence over the legal form is also a completely logical condition for ensuring the reliability of management reporting.

Events must be presented in accordance with their economic entity and economic reality, and not only with their legal form, which do not always correspond to each other.

Obviously, this condition is directly related to management accounting policies, more precisely, to the possible differences between management accounting policies and accounting policies.

Prudence (conservativeness) of management reporting

Prudence or conservative management reporting means that under conditions of uncertainty, care must be taken in making judgments so that assets are not overstated and liabilities are understated.

When there is a high degree of uncertainty, events should only be disclosed in the notes to the reports. In other words, management reporting should not be "dressed up" in such a way that it would be more pleasing to the management and/or owners of the company.

Comparability of management reporting

Such a characteristic of management reporting as comparability is no less important than the previous three discussed above. It is clear that if the management reporting formats change too often, it will be very difficult to control and analyze the dynamics of the indicators of such reports.

Of course, it is not always possible to develop desired shape management report. In order to finally verify the completeness of the form, as a rule, it is required to draw up a management report several times in order to test it on the numbers.

At the same time, adjustments to the management reporting formats are possible, but in the future it is advisable not to make changes to the management reporting forms unnecessarily. Such a need may be due to a change in the company's strategy, which may require planning and monitoring of new indicators that were not previously in management reporting.

Yes, in this case, the formats of management reports can be changed, but still, the company usually does not change its strategy so often, therefore, management reporting forms should not change often.

The number and composition of management reporting may change for another reason. If the company has a budget management system, and the planning model was detailed for certain reasons, which led to the emergence of new budgets and new indicators, then, naturally, it will be necessary to increase the number and composition of actual management reporting so that you can receive plan-factual reports for further analysis.

Such actions, of course, may also lead to a change in the existing formats of actual management reporting.

Classification of indicators of management reporting by the parameter "time"

All indicators of management reporting in terms of the "time" parameter can be divided into three groups:

interval (negotiable);

instant (balance);

mixed.

Interval or turnover figures management reporting provide information for a certain period of time (day, week, month, quarter, year, etc.). Such indicators may include, for example, sales volume, sales proceeds, profit, cash flow, etc.

Instantaneous or balance indicators of management reporting provide information at a specific point in time. Such indicators can be, for example, cash balance, accounts receivable/payable, inventory, etc.

Mixed indicators are formed from interval and instant. Examples of such indicators can be the turnover of assets (all or some elements: receivables, inventories, etc.), return on assets, return on equity, etc.

It is necessary to pay attention to the fact that for the analysis of management reporting it is better not to use instant indicators in their pure form, because they can vary greatly in each period. It is better to rely on interval or mixed (interval together with instantaneous) indicators.

For example, if a company has an increase in accounts receivable or inventory, it is not possible to draw an unambiguous conclusion based on this information. If the turnover period of receivables or inventories increases, then this is clearly a negative trend, but the growth of receivables or inventories in itself does not say much.

Classification of management reporting by temporal characteristics of indicators

All management reporting on the temporal characteristics of indicators can be divided into three main groups:

actual management reporting;

planned management reporting;

plan-fact management reporting.

From the name of these groups of reports, it is obvious what information they contain. However, a few comments need to be made.

When generating actual and planned management reporting, the same management accounting policy of the company should be used. Otherwise, it is difficult to analyze plan-fact management reporting.

After all, some plan-factual deviations can only occur due to differences in accounting policies that were used in planning and accounting.

When forming plan-factual management reporting for financial responsibility centers (FRC), it must be remembered that in this case it is necessary to use the principles of flexible budgeting.

Thus, when forming the plan-actual budgets of the Central Federal District, it is first necessary to calculate a flexible plan, and then calculate the plan-actual deviations. If this is not done, then the assessment of the results of the work of the CFD in the reporting period will be incorrect.

Classifier of management reporting (by types of reports)

Before you start developing management reporting formats, you must first create a report classifier, that is, a complete list of all necessary reports with brief description their content.

Of course, management reports can be classified in different ways. In fact, it is not so important which particular classification will be used in each particular company. The main thing is that it be carried out and clearly recorded in the relevant regulatory documents.

As a rule, the classification of management reporting is contained in the Regulation on Management Accounting. Naturally, the classification of management reporting should be convenient for practical use.

An example of a possible classification of management reports is presented in figure 1. It should be noted right away that the names of report groups are not generally accepted. Each company, in general, can use its own classification of reports.

Fig.1. Classification of management reporting

Although in terms of financial reporting, certain standards have already been established. That is, in every company, regardless of its activities, organizational structure, business processes, etc. Three financial statements must be prepared: an income statement, a cash flow statement, and a balance sheet. Rice. 1).

This is necessary in order to control the financial and economic condition of the company. As a rule, the main users of financial statements are the owners and CEO of the company. It should be noted that the participation of the CEO in the development of management reporting formats, at least financial reports, is necessary condition the success of the management accounting project.

This does not mean at all that the CEO himself should develop the formats, but he should consider the draft management reporting forms proposed by the project working group on setting up management accounting and, naturally, should delve into the essence of these reports.

In fact, one of the reasons for the general director's indifference in such projects may be his habit of managing not according to the system, but "by the eyes." CFO one company at the very beginning of a management accounting consulting project complained to our consulting team about the CEO.

He said that if you announce to the CEO that he must understand three financial statements, then, most likely, nothing will come of this venture. The financial director explained that for several years he had been making similar attempts, so to speak, to accustom the general director to the use of management reporting in managing the company, but for him even one report is a lot.

It really took us quite a long time to convince the CEO that it is simply impossible to achieve manageability of the financial and economic state in a different way, especially in rapidly growing companies. Therefore, we conducted individual lessons with him, first on the study of financial reports, and then on operating ones.

By the way, financial statements are so called because they contain only cost indicators. Financial statements, of course, may contain relative performance(for example, return on sales or return on assets), but these indicators are derived from cost.

That is, there are no indicators in financial reports that are measured, for example, in pieces, kilograms, kilometers, etc. All items of financial statements are measured in money. But in operational reports, just in addition to cost indicators, there may be natural ones.

Objects of management accounting

Operational reports can actually consist of several groups (see below). Rice. 1). In order to make it easier to understand the considered example of the classification of management reports, it is necessary to combine the classifier of management reporting with the classifier of accounting objects (see Fig. Rice. 2).

Fig.2. Relationship between the classifier of management reports and objects of management accounting

Financial statements are prepared for such an object as a company as a whole or for a group of companies, if we are talking about the holding. By the way, the preparation of consolidated financial statements for the holding can be quite a difficult task.

If the holding consists of companies that are not related to each other at the operational level, then the task of consolidating financial statements is solved quite simply. If business transactions are carried out between the companies of the holding, then in this case everything is not so obvious, because it will be necessary to take into account mutual transactions in order not to distort data on income and expenses, assets and liabilities at the holding level in the consolidated financial statements.

So, financial reports provide information about the financial and economic condition of the company as a whole. But in order to understand why such values ​​of financial statements indicators turned out, it is necessary to dive to a lower (operational) level. Management reports of the lower level can be of different types depending on the objects of accounting.

Among the lower-level accounting objects, business processes, projects and divisions can be distinguished. Moreover, projects can be divided into current and investment. The fact is that the current activities, due to which the company earns profit, can be organized in different ways.

Some companies (process companies) make money by organizing a chain of regular business processes from supply to sales, while others (project companies) make money by building a system to perform time-limited actions (projects). Process companies can include, for example, organizations involved in mass production, or trading companies engaged in regular wholesale or retail sales.

Typical representatives of project companies are construction organizations, because they earn profit through the construction and sale of certain facilities. The construction of such facilities in this case is the current projects. As a rule, all these objects are unique in their own way, so this type of activity cannot be considered as more or less typical as mass mass production.

In fact, in recent years, there has been a growing tendency to blur the line between process and design organization current activity. For example, some manufacturing companies can work using the order principle, which can be regarded as project activity. And among construction companies there are those who regularly build more or less typical objects, for example, towers for mobile operators.

A company may have several hundred such more or less typical objects during the year. Nevertheless, the current activities of any company are more related to either process or project activities. This is the basis for the development of a classifier of management accounting objects and a classifier of management reporting.

Thus, a process company simply does not have such an object as current projects. But in addition to current projects, regardless of the organization of current activities, any company can have development projects. The purpose of these projects is fundamentally different from the goals of current projects.

Current projects allow the company to earn profit from the existing potential, and development projects are designed to significantly change the company's potential, which in the future, of course, should have a positive impact on the final financial and economic condition of the company.

So, to control the current activities of process companies, functional (process) management reports are used, which contain information on financial and economic indicators that characterize the effectiveness of the implementation of business processes. The number and composition of functional reports are determined individually in each company.

To control the current activities of project companies, management reports on current projects are used, which contain information on financial and economic indicators that characterize the effectiveness of the implementation of business projects.

To control the effectiveness of investment activities, investment reports are used, which contain information on financial and economic indicators that characterize the effectiveness of the implementation of development projects.

And finally, to control the work of financial responsibility centers (FRC), reports on the CFR are used, which contain information on financial and economic indicators that characterize the performance of those units that have been assigned the status of a CFR.

Note: the topic of this article is discussed in more detail at the workshop