MODERN TOOLS FOR MANAGEMENT ACCOUNTING AND THEIR ROLE IN ENSURING THE TOTAL VALUE OF THE ENTERPRISE

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Published: Dec 28, 2020

  Maksym Chut

Abstract

The purpose of the paper is to determine the role of modern effective tools for management accounting in the context of increasing the total value of the enterprise. The article deals with the basic tools of management accounting and details the essence of their transformation in modern conditions. Current market conditions require modification of individual management accounting tools and methods, which are described in detail and substantiated in the article. In Ukraine, the value of management accounting remains undervalued, because, unlike the major international accounting systems, the use of management accounts in correspondence with financial accounts is in no way intended. Management accounting as such is at the discretion of the enterprise. Therefore, this function - meeting the specific management information needs - is often entrusted with analytical accounting data which, by its very nature, cannot fully accomplish such tasks. The author specifies some atypical modern tools not only the management accounting process, but also its support. Business value estimation is presented as a kind of management accounting tool that allows, at the same time, to create reputation capital, and to become an element of it. As a result, the system of the newest management accounting tools in the system of value-based management was improved by determining the essence of transformation of its components, which allowed to establish their role in identifying and counteracting factors of negative influence in terms of growth of enterprise value. The research substantiates the role of each single up-to-date management accounting tool (application of modern e-document flow in management accounting, cost-oriented controlling, actuarial calculations, international accounts, electronic forms of analysis, forecasting and mathematical modelling, reporting forms and their dissemination by modern means of communication) in identifying and eliminating problematic factors to the implementation of value-based management.

How to Cite

Chut, M. (2020). MODERN TOOLS FOR MANAGEMENT ACCOUNTING AND THEIR ROLE IN ENSURING THE TOTAL VALUE OF THE ENTERPRISE. Three Seas Economic Journal, 1(4), 153-158. https://doi.org/10.30525/2661-5150/2020-4-22
Article views: 456 | PDF Downloads: 464

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Keywords

value-based, management, accounting, capital, reputation, business image

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