Development of guidelines for and monitoring of accounting system introduction
Accounting system underlies business management system. Current accounting data are used for the following purposes:
- generation of management reports
- generation of financial statements and tax accounts
- measuring unit and personnel performance
- operating activities analysis;
- … and in other cases requiring decision making
So, accounting system is a component of modern business management system
Accounting system can take different forms:
- as an integrated ERP (SAP R/3, Oracle EBS, …) – type accounting system
- as a 1С-type system with separate management accounting and book keeping
- as spreadsheets or proprietary systems
To gain maximum effect from the running or new accounting system, it is necessary to determine the tasks set to the system by the enterprise prior to its introduction. Besides, the system may be already in place at the enterprise but needs upgrading due to emergence of new tasks. For example, the following tasks may be set:
- develop and introduce a system of indicators for evaluating unit performance
- develop and introduce a system of indicators for evaluating changes in the company value
- amend managerial accounting of subsidiaries
- change distribution of responsibilities between company units in relation to planning production activities and plan fulfillment
- secure transparency of company unit counterparty relations
- modify approaches to type of activity, product, service based cost management .
Each of the aforelisted changes in enterprise activities places demand on changes in the requirements to automated processes, and the development of the software as such may turn to be minor. Thus, a correct setting of the task and formulation of requirements to the accounting system is a methodological task. Its accomplishment requires highly skilled experts familiar with industry specifics, process engineering at the enterprise, having the necessary methodological tools, knowledgeable of accounting principles and capable of formulating proposals in plain language.
