Essence of Accounting. Management Accounting

So, for many, accounting is an orderly system for collecting, recording and summarizing information on facts of economic activity. And now answer the question, dear accountants, is this so for you? I'm sure that no, or just do not understand the question or for most of the answer will be "No". And for those who do not deal directly with accounting, but must know about its existence (managers, business owners) everything will be correct and this definition too.

So what is accounting? And why exactly accounting, and not some kind of economic, production, etc.? Let us first turn to the definition and understanding of the need for accounting. Probably everyone has heard such expressions as: "I'll take into account", "I'll have to take into account" or, more understandably, "I'll take note". So, from here, an objective necessity arises to take into account both the process of registration and generalization of information about phenomena and facts of economic (and not only) life. Saying "I'll take into account", we mean that in this case, to which this very "Uchtu" refers, we will do this or that action in some other format, not allowing errors that might arise in the case, do not possess We are able to remember, that is, to take into account. This is the accounting. More precisely not only this, but this is the basis of accounting. Now let's see why exactly accounting? Yes, or why, just this is what our practice has transferred from the practice of foreign, more precisely German, since the word "accountant" is of non-petty origin and means "book-holder". That's the whole riddle. Think, everyone knows about this, but this is far from true: many know only the translation of this word, and what is hidden under it - do not even think about it. A hidden under it is simply a method that we will call "accounting", and the basis of this method, as we all know - the brilliant invention of L. Pacioli is a double entry. It is through this tool that it becomes possible to reflect all the variety of operations that arise in the course of economic life. It is a double entry that allows you not to get confused and quickly turn to the information we need by encrypting it through accounts. And then quickly concoct the reporting on sovmestnyh records that are recorded in the main book (booze), and is responsible for these records a certain person (holder). That's why he's an accountant.

There is enough history, let's turn to what is accounting in modern Russian realities. For interest, ask your friends what they think about this question. You will be surprised, but many (7-8 out of 10 people) will say that it is taxes, balance. The most advanced will say that the identification of reserves, the prevention of negative performance results, property control also has an accountant. This is not bad, but it is not good either, since accounting is driven into the framework of only taxes and mandatory reports. And that's all. Well, that some more actually watch, they analyze what they taught - it's a huge plus! And only 2 out of 10 people will answer that accounting is a complex information system designed to provide information on the first request to anyone who is behind it to apply (of course having the authority to do so). Do you think it's just that? An is not present - as a result there are such concepts as "book keeping" and "the administrative account". For God's sake, but if it leads to duplication of departments - this is a disaster, and even what - bringing real losses to the company. I agree that in some not very clean companies such a statement of the question may take place, but this is not management accounting, but accounting for "black cash" and it has nothing to do with what we are talking about here.

In conclusion, I would like to add that managers need to take a very responsible approach to the issue of accounting, by assessing the degree of transparency of their business. After all, it makes no sense to keep accounting and another financial department, which was created not to perform its own operations, but for management accounting. No less absurd is the situation when some new automated products are introduced specifically for management accounting, or when the task is simply to introduce management accounting. But why introduce it? ... But this is already the topic of a separate article.