Organization and Development of Intra-structural Processes of

Accounting and Control of Financial Results as a Basis for Efficient

Enterprise Management

Alexey Vasilyevich Fedorov

State University of Management, Ryazan Avenue, 99, Moscow, Russia

Keywords: Intra-structural processes, accounting, control, financial results, management.

Abstract: The article deals with the organization and development of intra-structural processes of accounting and control

of financial results. Their importance and role in improving the efficiency of enterprise management were

considered. We identified a set of measures, the implementation of which would ensure the achievement of

the planned indicators of the company's financial results.

1 INTRODUCTION

In the current market conditions, various factors of

the business environment have a significant impact on

the company's activities. The modern business

environment is characterized by a high rate of change

in demand, changing market conditions, exposure to

a variety of consumer requirements, and many others.

The business response should be immediate and,

ideally, proactive. Enterprise systems shall meet

rapidly changing environmental conditions (Vlasova

N.S., Aytekova B.Z., Abilova D.S. 2019). Factors of

influence determine the conditions that require

assessment and analysis when making management

decisions aimed at achieving the financial results of

the enterprise outlined for the planning period. The

quality of management decisions in modern

conditions directly depends on a thorough analysis of

the external environment (Burdina A.A., Nekhrest

A.A., Frolov Y.N., ).

The ability of management to correctly assess the

situation and make high-quality management

decisions largely depends on the level of

implementation of intra-structural processes of

accounting, control and the management system as a

whole.

Currently, economic entities have a real

opportunity and the right to independently determine

financial, managerial, and economic policies.

However, having freedom of choice, enterprises face

https://orcid.org/0000-0001-6522-3983

difficulties in implementing both the construction of

processes of interaction between structural divisions,

regulations of procedures, and introduction of

accounting, control, and management procedures.

As the main reasons influencing the search for

solutions to the tasks facing the management of

enterprises, we can distinguish, first of all, the lack of

market information both in the professional field of

activity and related areas. The availability of full-

fledged reliable information about the company's

place in the market, its position, and impact on the

business environment, allows the management to give

an objective assessment of the company's position

and make a high-quality management decision aimed

at achieving maximum financial results. The lack of

efficiency and access to the planned financial result

forces the company to resort to attracting paid

resources (Burdina A.A, Moskvicheva N.V, Oktay

M.-A.N. 2019).

It is also important to highlight the business need

for highly qualified specialists trained to work using

modern methods of processing financial and

managerial data, the results of which can be used for

enterprise management.

The use of modern methods will be significantly

more efficient if the proposed solutions can be

implemented based on IT products and advanced

software. The introduction of modern achievements

and technologies enables to take deeper account of

the conditions and features of the market environment

232

Fedorov, A.

Organization and Development of Intra-structural Processes of Accounting and Control of Financial Results as a Basis for Efﬁcient Enterprise Management.

DOI: 10.5220/0010697600003169

In Proceedings of the International Scientiﬁc-Practical Conference "Ensuring the Stability and Security of Socio-Economic Systems: Overcoming the Threats of the Crisis Space" (SES 2021),

pages 232-236

ISBN: 978-989-758-546-3

in which the company implements its projects, and to

understand the correctness of the decisions made.

The purpose of the article is to propose a

mechanism for the organization and development of

intra-structural processes of accounting and control of

financial results. In this article, we would like to

combine all the resources that an enterprise can have

and find a solution that could be accepted as a recipe

for efficient management. The task of achieving the

goals of improving the tools and building internal

accounting and control processes has always been

relevant.

Consideration of the organization of accounting

and control is reflected in the works of many well-

known scientists. Methods and recommendations of

such authors as V.B. Ivashkevich, M.V. Melnik, T.M.

Rogulenko are relevant for the development of such

management solutions that would allow achieving the

highest indicators of financial results.

The need for accounting, designed to manage the

activities of the enterprise, has existed since its

incorporation. Initially, accounting was intended for

owners and served their interests. With the

introduction of regulations and the definition of

common approaches, accounting and reporting have

also become popular with external users. The

increasing complexity of production processes and

the development of financial relations have not only

preserved the need for accounting and control but also

forced us to look for ways to improve the mechanisms

of implementation and efficiency of processes

(Ivashkevich V.B, 2016).

The fundamental task of the enterprise is to make

a profit in such volumes that would not only ensure

the fulfillment of the assigned expectations of the

owners in the form of dividends but also develop

production capabilities for the future. Traditional

methods of enterprise management, based on a

widely used linear-functional management structure,

do not allow us to quickly adjust and respond to

changing environmental conditions. Processing and

accounting of input indicators take sufficient time,

which significantly affects the receipt of data for

making management decisions and affects the

efficiency and effectiveness of the business. We can

often see the implementation of the enterprise

management mechanism, where business processes

carried out by structural divisions are implemented

without exchanging production information, and

operational management decisions can be made only

based on accounting data for the previous reporting

period.

In modern conditions, domestic enterprises are

called upon to reform existing business practices

based on modern enterprise management concepts,

since the main direction of efficient activity is to

ensure profitability at any stage of the life cycle. It is

the structural divisions that are obliged to pay close

attention to the level and quality of their expenses,

which have a direct impact on the result of their

activities (Kolesnik N.F., Shibileva O.V., 2019).

The enterprise is a mechanism that turns the

strategy of the owner and top management into

money (Savchuk V.P., 2007).

Business owners and the company's management

naturally face the issues of developing and

implementing a mechanism for organizing intra-

structural processes for accounting and controlling

financial results, which increases the efficiency of

using the company's resources, allows identifying

reserves for increasing profits, and ensures survival

and adaptation to modern market relations.

As practice shows, the losses from the lack of

properly organized business processes are

significantly higher than the losses from abuse in

enterprises. The company's products can be

demanded on the market, and consumers declare their

intentions in advance to purchase goods that are still

at the production stage, but the intra-structural

processes at the enterprise are organized in such a

way that they result in a violation of delivery terms,

violation of storage conditions, overproduction, and

other processes caused by the lack of organization of

accounting and control processes. Ignoring the

increasing demands of customers leads to a loss of the

market and a decrease in the level of financial results.

Based on the experience of managing successfully

developing economic systems, the most significant

changes in the accounting and control process are

associated with the implementation of the strategic

orientation of the management process and ensuring

continuous indicative planning, as well as

strengthening the role of control processes and their

merging with accounting operations (Melnik M.V.,

2014)

The development of modern management

solutions is the definition of possible ways to improve

the efficiency of the enterprise. The quality of the

organization of accounting and control at the

enterprise is largely determined by the quality of the

formation of the information base. The basis of the

information resource of the enterprise consists of

accounting and management data, budgets of various

levels, and internal forms of analytical reporting.

Based on the primary accounting data, an information

base is formed to analyze and adopt high-quality

management decisions in the field of formation and

functioning of the internal environment of the

Organization and Development of Intra-structural Processes of Accounting and Control of Financial Results as a Basis for Efﬁcient

Enterprise Management

233

enterprise (Ilyasova M.K., Memetova E.E., 2017).

Operational processing of primary documents and

entering data into the accounting system allows

creating an information resource that is a source of

data for the operation of the management decision-

making mechanism.

The purpose of the work is to develop and

implement a system of accounting and control of

financial results based on the organization of internal

processes and procedures of budget management.

The development and improvement of internal

processes of accounting and control of financial

results allow the enterprise's readiness to change the

business environment and implement the most

efficient management of the enterprise. Within the

framework of building internal accounting and

control processes, the following tasks will be solved:

 improving the management efficiency of

structural divisions of an enterprise or group of

enterprises;

 ensuring resilience to the impact factors caused

by the changing business environment;

 ensuring control and continuity of business

process management;

 providing flexible feedback and system

response to changes in the parameters of the

control mechanism;

 determination of the sequence of actions of the

personnel involved in the work within the

framework of the functioning of intra-structural

accounting and control processes in case of

deviation of controlled parameters from the

basic ones.

2 MATERIALS AND METHODS

Work on the organization and implementation of

intra-structural accounting and control processes is

carried out in stages while developing the main

measures that reflect the sequence of tasks to be

solved. The set of fundamental measures should

include:

 defining the control scheme;

 determining the list of structural divisions of

the enterprise or legal entities planned for

inclusion in the work under the holding form of

management (application of a cross-work

scheme when the structural division is

managed from the parent company but forms

the business processes in all the enterprises

participating in the group);

 determining the areas of responsibility of

managers and authorized employees following

the management scheme and local regulatory

documents;

 determining the list of structural units that are

planned to be involved in the internal

accounting and control processes;

 development and implementation of local

regulatory documents, instructions, and other

regulatory documents that define the

procedures for interaction of departments;

 development of a plan for the implementation

of internal accounting and control processes;

 procedure for processing, exchanging, timing,

and composition of the transmitted

information;

 conducting IT consulting, identifying IT

technologies, software products, the use of

which in the developed and implemented intra-

structural accounting and control processes can

ensure the efficiency of both the processes

themselves and the effectiveness of

management decisions made on their basis;

 determining the list of control indicators,

parameters of values of indicators, stages, and

terms of carrying out measuring comparative

procedures;

 implementation of the methodology for

determining the dependence of indicators of the

revenue and expenditure parts of the budget;

 development and implementation of

procedures aimed at correcting the identified

deviations.

Implementing the enterprise management

system's proposed mechanism can be represented as

a system with rigid feedback. There is an input

parameter X(t), which enters the control mechanism

that implements the specified function, conducts

internal processing, and changes its value to the size

that consumers expect at the output Y(t).

The parameters X(t) and Y(t) are variables whose

dependence is determined by the parameters of the

function F(t). The description of this function takes

into account the dependence of parameters that, under

the influence of external factors, have such a control

effect that adapts the budget parameters to the current

situation and smooths out external influences. The

formation of the function equation is a defining

process, which is based on the identification of such

dependences of the parameters under study, for which

a certain value of the input parameter corresponds to

a certain value of the output parameter. The

peculiarity of the process is that a larger number of

parameters taken into account in the analysis

SES 2021 - INTERNATIONAL SCIENTIFIC-PRACTICAL CONFERENCE "ENSURING THE STABILITY AND SECURITY OF

SOCIO - ECONOMIC SYSTEMS: OVERCOMING THE THREATS OF THE CRISIS SPACE"

234

determines a larger number of factors of influence

and complicates the formula. As soon as we begin to

form the influence of the input parameter on the

processes, we immediately get a change in the output

parameter. The main task is to identify such a

dependence of the input and output parameters, at

which the dynamics of change becomes predictable

and lies in the field of our research interests.

The described methodology can be applied to

quickly adapt the budget to external factors. The cost

of produced products depends on the cost of their

production. A significant change in demand,

overstocking warehouses with a specific type of

product creates the need to reduce production and

limit the purchase of raw materials. The list and the

amount of costs for the production of one item of a

particular product range will be known components.

If the market situation changes and the volume of

sales changes, then the derived function of the

dependence of income and expenditure parameters

will help the system quickly adjust the budget and

limit the cost of forming stocks of the considered

item.

Linking the accounting parameters to the

reporting forms will enable to quickly determine the

indicators of financial results and create a basis for

making management decisions. A large number of

micro-budgets can function for each of the product

ranges within a single enterprise budget framework.

This scheme can be considered as a finely tuned

tool that implements both accounting and control

functions of the management process. The

presentation of the parameters functioning in the

system can be implemented in the form of a wide

range of elements, including accounting indicators,

the management or financial accounting, or even

combined parameters, the definition of which is

necessary for precise adjustment of management

decisions, for example, on control and maintenance

of a given level of financial results for one or more

enterprises of the group, control of covenants of credit

agreements or cost parameters, and much more. The

proposed scheme can be useful for solving various

tasks related to the organization and development of

intra-structural processes of accounting and control of

financial results. By identifying the dependence of the

scheme parameters on external influences of

changing market conditions, demand for

manufactured products, the level of technological

perfection of production equipment and production

processes, the formulation of pharmaceutical

preparations, changes in logistics solutions, as well as

the dependence of parameters on each other, we can

get as deep a matrix chain of parameters as possible

to describe the processes, identify the patterns of their

changes and the mutual influence on each other and

on the parameters under study.

The involvement of a larger number of

parameters, conditions, and data in the analytical

chain for detailing the decisions made, and, as a

result, reducing the parameters of the tolerances for

changes in the studied values, will depend on the task

complexity and the number of processes involved in

the solution.

By building a hierarchical structure of

management processes, we can rank the results of

indicators by their significance and importance for the

system, and determine the level of influence that they

can have on the effectiveness of the process (Burdina

A.A., Kaloshina M.N., Manaenkova E.T., Nekhrest

A.A., Rogulenko T.M. 2018).

Accordingly, focusing on the introduction of a

larger number of controlled parameters, the system

connects the decision with the influence of a larger

number of corrective processes but, at the same time,

provides a more accurate final result and a higher

sensitivity to the influence of external factors.

Expanding the number of parameters under study

requires the use of modern software. Solving the

problem on the basis of ERP systems allows

combining the information resources of the

enterprise: accounting, financial and management

data, and speeding up the processing of accounting

information, which significantly improves the quality

of management decisions and control functions.

3 RESULTS AND DISCUSSION

Much attention has been paid to the consideration of

accounting and control issues in the works of leading

domestic and foreign scientists. However, the

organization and implementation of intra-structural

accounting and control processes at production

enterprises, the implementation and development of

management algorithms for accounting parameters

are not sufficiently disclosed and deserve more

attention. The applicability of the proposed tools is of

profound interest. The use of these tools based on

ERP systems allows expanding the scope of the

studied parameters and linking together various

functional and information blocks of the enterprise.

Y=F(X1, X2, …Xn) (1)

Organization and Development of Intra-structural Processes of Accounting and Control of Financial Results as a Basis for Efﬁcient

Enterprise Management

235

4 CONCLUSIONS

The activity of manufacturing enterprises encourages

the search for such management systems, accounting

and control organizations, the result of the

development and development of which would be the

achievement of management efficiency and planned

indicators of financial results.

The implementation of the approaches proposed

in the article at the enterprise allows us to take a more

extensive approach to the organization of accounting

and control, to look at the studied processes from a

different angle. The use of a mechanism for

controlling the deviation of basic parameters under

the influence of changes in the business environment

gives the company's management a lot of confidence

in the time of information processing and decision-

making.

Automation and efficiency of information

processing significantly affect the effectiveness of

interaction between structural divisions and

motivates management to develop intra-structural

processes of accounting and control of financial

results as one of the ways to improve the efficiency

of enterprise management.

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