Dear Entrepreneurs and Managers,
You see that your business is doing well, but inside, you have a feeling that something isn't quite right?
If you have this feeling, it means there is, directly or indirectly, a problem with your accounting. If there is a problem with your accounting, it becomes nothing more than an additional workload for the business, and the labor resources you’ve paid for are being wasted. And that’s not even mentioning the other negative impacts.
So, what is accounting, and why is it necessary?
Accounting is the information system where data is recorded, classified, and collected, ensuring that the right decisions are made for the successful development of the business.
So, which types of accounting are used or should be used?
Often, an employee who is familiar with one type of accounting views and mixes up all other types of accounting, which is why accountants and managers, tax employees and accountants struggle to understand each other, and everyone thinks they are right. In fact, everyone is right; it simply happens because one doesn’t understand the purpose of the other type of accounting, which leads to conflict.
Don’t worry! We’ll explain it to you in simple language, because our job is to organize all types of accounting.
Let’s continue with Management Accounting:
There are interested parties in business data. "Interested parties" refers to individuals or legal entities, such as business owners, employees, and other companies they are in contact with, as well as government agencies and individuals in financial organizations. Based on the different objectives of these interested parties regarding the business data, three main types of accounting are used and should be used: Management Accounting, Financial Accounting, and Tax Accounting.
As you can see, the reason for different types of accounting arises from the question: "Who needs what?" In fact, the operations and processes in the business do not change. Each type of accounting records the same operation, but different accounting systems record different information about that operation for different users, or the same data is recorded in different forms and approaches. The difference simply arises from the differing information needs of the users of the data.
So, who needs which accounting and why?
First and foremost, the management and executive teams need an accounting system to measure, manage, and improve the productivity of internal operations. Because if you can’t measure something, you can’t manage it, and if you can’t manage it, you can’t change it.
So, what do managers want to see in accounting for these purposes?
They want a more detailed analysis of data, the ability to create forecasts and plans, and the ability to measure progress so they can manage it. Therefore, the accounting that provides analysis, plans, and result reports for managers and executives is Management Accounting. There are no strict requirements for setting up Management Accounting, nor are there universally accepted standards like in Financial Accounting, but there are developed principles and approaches. In this accounting system, everyone can record data according to their business processes and policies, and set up their analysis and operations in the necessary form.
As a result, Management Accounting is essential for managers and executives.
By using these services, you will have your business operations organized automatically, transparently, seamlessly, efficiently, and in compliance with standards and legislation. You will also have accurate, correct, relevant, and reliable information about all aspects and the current status of your business.
Management Accounting Setup
The accounting setup in the 1C software includes the definition of appropriate Accounting Policies tailored to the field of activity, classification of Revenue and Expense Centers, identification of business processes for daily operational activities, categorization of expense and payment items, counterparties, items, and other elements. It also involves the initialization of opening balances, the configuration of analytical reports, as well as guidance and training on the system's operation.
Management Accounting Execution
In the 1C software, the accounting of data is carried out based on the daily and monthly financial transactions submitted by the business, and the predefined reports are delivered to you on the specified dates.
Management Accounting Monitoring
In the 1C software, the daily and monthly transaction data of the business is recorded by its accountant and staff. However, our chief accountant reviews the processed transactions for compliance with accounting standards, conducts a monthly review, identifies errors, and provides explanations on how to rectify them.
Hurry up and take advantage of our Management Accounting services under CRYSTAL BUSINESS!!!