STRATEGIC MANAGEMENT ACCOUNTING

Strategic Management Accounting

Strategic Management Accounting

Introduction

At the founding of a company of its owners, in most cases are based on the strategic, long-term facilities, rather than short-term considerations, which give reason to apply the accounting estimates in the forecasting and analytical work. In this connection, considerable attention is being given to strategic management accounting, which emerged relatively recently, but already generated in a sufficiently broad area of ??scientific and practical activities. As part of strategic management accounting is performed a thorough analysis of the external business environment (competitors, suppliers, customers, external economic conditions, government action), where the organization carries out its activities, in which should be taken into account the organization's strategic position in the market, the differentiation of its products, and should also be built full value chain of the organization. As the characteristics of strategic management accounting is allocated:

Performance analysis of internal factors and processes.

Implementation of the analysis of external factors and processes.

Analysis of non-financial factors.

Assertion that the amount of output is not the most important factor in explaining the behavior of costs.

The existence of his system of analysis for each factor.

The assertion that not all determinants of cost are equally important at any given time, but some are important in each case.

Adaptation to the real business needs of the organization, thus playing a key role in its activities.

The process of strategic management accounting includes not only the records, but the following three elements, as well:

Strategic analysis.

Strategic planning.

Strategic control.

The result of strategic planning is the development strategy (business strategy, corporate strategy) of the organization - the organization of long-term program of action (for 5 years and over) in the business, which can be divided into the following components:

Podstrategii (production, marketing, financial, personnel).

Some (competitive) strategy (for each unit enterprises that can compete in different markets and produce various kinds of products).

In modern conditions to ensure optimal management of financial flows of almost any organization (entity, the enterprise) is of particular importance in connection with the crisis in many of them. If the company is in financial difficulties to varying degrees of gravity, the strategic management accounting financial flows becomes the means justify the program of financial recovery.

Methodology: Approach being used

Strategic management accounting financial flows can be characterized as a component of strategic management accounting, under which the information generated to ensure decision-making on financial flows management organization for the long term (5 years and over). Another way, strategic management accounting financial flows - is a means of justification of the financial strategy of the organization. Revealing the essence of strategic management accounting organization of financial flows logically justified turning to his tools:

Of ratios (ratios) for assessing the financial condition of the organization.

Classification of financial flows of the organization;.

Mathematical model of the financial flows of the organization.

The system of indicators to assess the relative financial status - a tool for strategic management accounting financial flows, financial strategy linking the organization with its operational and financial business activities. In other words, this system allows you to translate the financial organization's strategy ...