Features of the formation of management balance

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How to draw up a management balance sheet? The management and accounting balance sheets are formed according to similar principles. However, it should be borne in mind that there are some features in the formation of the management balance sheet, which are significantly influenced by the following factors:

method of organizing management paraguay mobile phone numbers database accounting;

requirements that users place on reporting;

the purposes of drawing up a management balance sheet;

the degree of accuracy required, etc.

As stated earlier, the basis for management accounting is accounting information. There is no need to waste time searching for discrepancies between them. On the contrary, it is necessary to bring them closer together as much as possible, as far as the tasks facing both systems allow. This aspiration will have a positive effect on the labor intensity of the accounting process.

Very often, financial sector specialists consider management accounting to be a creative science that is not subject to regulation. This opinion is partly true, but still, compliance with certain principles is simply necessary.

Features of the formation of management balance

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The compilation of a management balance sheet does not happen just like that, the document is a consequence of the management accounting system, which has a certain methodology. Thanks to this, confusion in approaches to the formation of such data is eliminated.

A gross error is considered to be a situation in which in one period the organization's specialist in assessing non-operating income, when preparing reports, will take into account the detailed non-operating income and expenses, and in another period will simply use the final financial result for such transactions.

To avoid errors in the report in the management accounting system when forming the balance sheet, it is necessary to initially form the management accounting policy of the enterprise: accounting must be carried out in compliance with this regulation.

This point is especially important if it is necessary to form consolidated management reporting of several companies. When consolidating reporting, it is not necessary to take into account intra-group turnover and mutual obligations of the group companies.