Management accounting



Management accounting provides updated information for further emergency decision-making and control, and monitoring. Management accounting is required for successful operation and development of a modern company.

Limited Liability Company “PM smart consulting” provides the following services for «Management accounting»:

Our employees have a vast experience of insider work in accounting departments of companies in various economics fields from positions of accountant to chief accountant. More information on «Accounting, management, tax accounting and reporting» you can find following this link.

“Enjoy what You like, we will take care of the rest of Your business”.

With love to our job and every Client.

Management accounting set-up

Nowadays set-up and maintenance of management accounting gains more and more importance, which leads to formation of management reports – the best information basis for management solutions.

However, any issues can come up while working with management accounting. The PMsmart team is always ready to help you.

We are skilled professional, and some of us have financial education. We have worked a lot at top management positions of financial departments, including those dealing with planning and accounting, to become experts in management accounting spheres.

Our main task is to create the best management accounting system for your business, which will lead to successful operation of your company, increase development rates, it will also let managers to get all necessary information in time, execute effort assessment of various company units.

We propose the following scheme for elaboration and implementation of management accounting for your company:

LLC «PMSMART» MANAGEMENT ACCOUNTING IMPLEMENTATION SCHEME
  • Elaboration and approval of a technical task 
    We study your request, requirements, expectations and define and approve scopes and terms of works and also content and scope of reporting documents.
  • Assessment of company strategy 
    We discuss your company strategy with you, understand priorities, define tasks and information requirements of your management team.
  • Management accounting system implementation
    • Creation of an information database to establish a management accounting system
      We elaborate a unified classification of cost item; separate constant and variable costs, direct and indirect costs; elaborate Regulations on management accounting and reporting; describe interaction with financial accounting and reporting.
    • Elaboration of a company financial structure
      We elaborate a financial structure of a company; assign management accounting functions to executive elements inside the company structure.
    • Creation of a cost management system 
      We elaborate cost reporting systems; elaborate cost optimization programs.
    • Management reporting system creation
      We define structure and formats of management reports via elaboration of unified report forms; define order of formation and submission of management reports in accordance with organizational and financial structure of a company.
    • Creation of a budgeting system on the basis of management accounting data
      We define types of budgets for planning; elaborate budget forms, elaborate procedures for budget forms completion; define control forms; elaborate reports comparing actual indicators with planned indicator and further analysis of differences.
    • Staff training 
      We provide staff training for management accounting (for executive staff). We provide staff training for management reporting for middle and top executive management.  

Nowadays, management accounting is a necessity for all companies, whether they are large, average or small.

Trust us and we will provide management accounting set-up and implementation at the highest level.

And remember…

“Enjoy what You like, we will take care of the rest of Your business”.

Management accounting keeping

Managers require not only information about the past activities, but also prospective information. Moreover, financial reporting is executed for a specific date, but business management requires current evaluation of events. Furthermore, while the financial accounting system uses general principles and regulations, management accounting regulations shall be set by each company on its own.

The main goal of management accounting for a company is to get as much information as possible to increase financial and cost management efficiency.

If your company doesn’t have a  management accounting system yet, the PMsmart can set up it for you from scratch.

More information on «Management accounting set-up» you can find following the link.

If you had attempts to create management accounting systems in the past but those were unsuccessful, PMsmart will help you to analyze reasons for that and then recommend an efficient management accounting methodology for your business in accordance with your needs and expectations. Our team will then implement the system and execute management reporting.

We are skilled professional, and some of us have financial education. We have worked a lot at top management positions in of financial departments, including those dealing with planning and accounting, to become experts in management accounting spheres. Our specialists know English and German languages and can prepare all types of reports and management accounting documentation in these languages at request.

PMsmart will elaborate management accounting system to improve your company management processes by:

  • more efficient usage of operating and financial resources;
  • improvement of services/product quality;
  • decrease its cost of production;
  • more efficient internal control;
  • increase competitive ability of your business.

Trust us and we will provide management accounting set-up and implementation at the highest level.

And remember…

“Enjoy what You like, we will take care of the rest of Your business”.

Management reporting

Efficiency of any business depends on quality of management decisions. High quality decisions require full and timely provided management reporting information.

Management reporting is internal reporting system of a company including analytical and accounting information in reports formed in accordance with internal company regulation distinguishing internal and external environment of a company in general and (or) its segments and fulfilling information requirements of internal information users.

During elaboration of management reporting for your business, our team will follow requirements to content and format of management reports:

REQUIREMENTS TO CONTENT OF MANAGEMENT REPORTS
  • time efficiency 
    information shall be presented to top management, middle management and also to heads and specialists of company departments on time;
  • sufficiency 
    information shall be sufficient for decision-making and shall not be excessive and distract managers;
  • usability 
    reports shall be useful for management decisions;
  • target orientation 
    report data must be delivered to executors while sticking to confidentiality principles;
  • objectivity 
    information shall avoid any prejudgment, subjectivity and mistakes;
  • comparability
    report data shall be comparable regarding time and company departments;
  • cost efficiency 
    costs for execution of management reports shall not exceed its efficiency.

As our experience shows, all management reporting data can be divided into three main blocks:

  • Management reports on financial status, operational results and changes in financial status of a company (income and cost budgets, cost estimates for company departments, production plan, cash flow budget, payment schedule, investment plan, etc.);
  • Management reports on key indicators (operational performance on income, profit and expenses, assets management, etc.);
  • Management reports on company budget implementation (reports on cash flow, incomes and expenses report, capital investments report, etc.). This block is represented as a “plan-fact” report on all budgets.

There can be no standard set of report types for management accounting with a single unified format and structure.

We focus on your requirements and request when choosing format and structure of management reports. Because we understand that with too little information you will not be able to make a balanced decision, and with too much information, it will be too difficult to differentiate the most important data for your company.

We provide services for creation of the most efficient set of management accounting documentation that meets any requirements of your company. 

Within this block of services you can request set-up and maintenance of management accounting described in «Management accounting set-up» and «Management accounting keeping».

And remember…

“Enjoy what You like, we will take care of the rest of Your business”.

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