Production of products requires costs - labor and material. Labor must be paid, the company buys material resources, rarely acquires in exchange for products and services. Both require financial resources. Their main source is profit. The production cycle can be expressed as a chain: costs - products - revenue - income - profit. Its main links are the initial and final, that is, costs and profits. This determines the need for constant comparison of current and final (annual) costs and results of the enterprise, which is the basis of economic accounting.
Under cost accounting understand the management method based on the comparison of expenses and incomes in order to ensure the break-even activity of the enterprise. In recent years, judgments have arisen that the category of cost accounting is not characteristic of a market economy: the market “absorbs” cost accounting, it should be replaced by commercial calculation.
When defining the concept, one should proceed from the fact that, as an economic category, economic accounting expresses production relations that develop on the basis of the turnover of material and material and financial resources in the leading link of the economic system - the enterprise. Consequently, it does not cover all spheres of production relations, but only their separate, primary sphere. Production relations in the primary link are based on such value forms as goods, price, prime cost, cost, money, profit, self-supporting (entrepreneurial) income. Thus, cost accounting interacts with other categories determined by economic laws.
Under market conditions, production is carried out both in commercial and non-commercial enterprises. In relation to the latter, it is unlawful to apply the conditions and rules of commercial settlement. The demand for prudent economic management - the main condition for cost accounting - is common to all enterprises.
Structural subdivisions of the enterprise (teams, farms, workshops, etc.) are not legal entities, therefore they do not carry out commercial activity. Of course, an enterprise cannot operate on a commercial basis if its divisions do not operate on this basis.
Another thing is entrepreneurship. In the meaning of economic entrepreneurship, activities aimed at obtaining and increasing income, it is characteristic of both primary labor collectives and the entire enterprise. Entrepreneurship not only does not contradict economic calculation, but also constitutes one of its conditions. The performance of economic activity is reflected in the mass of profit as a realized part of net income.
Profit is generated from the proceeds from the sale of products, works and services of the main production; other sales (auxiliary production, sale of material assets); non-operating transactions - income from securities, from equity participation in joint ventures, rent, etc.
The organization of self-supporting activity presupposes the application of the corresponding principles of cost accounting. The main ones are the following:
economic independence of the enterprise in choosing the legal form and form of management, developing a production program, determining channels and methods for marketing products;
self-organization of activity of primary labor collectives;
freedom of entrepreneurship, competitiveness in the market environment;
cost recovery, profitability of production, self-financing of the enterprise;
a combination in the activities of employees of personal, collective and public interests;
responsibility of employees and the entire enterprise for the results of production;
accounting, control, economic analysis of expenses and incomes, economy mode, frugality.
Attempts to translate the principles of cost accounting into the activities of enterprises have been made repeatedly, but often without success. Among the reasons preventing its implementation were the monopolization of property; centralized control system, ignoring economic methods and excluding the independence of commodity producers in choosing the form of management and organization of production; non-equivalent intersectoral exchange; low motivation of employees to work; underdevelopment of industrial and social infrastructure, etc.
A number of these causes have now been eliminated, but some not only exist, but are getting worse. As a result, many agricultural enterprises remain unprofitable. However, this is not an argument that belittles the role of cost accounting as an economic category and method of management.
Economic accounting can be effective when the appropriate conditions are created.
Interaction and interdependence of cost accounting systems and market relations
A system is understood as a set of moments, interconnected and interdependent, forming a single whole. A systematic approach allows you to know the integrity of the object of study and the mechanisms that ensure it, to develop effective strategy research. The analysis of economic accounting as a system makes it possible to fully reveal and explain its essence, objective foundations, functions performed, identify the reasons for its insufficient impact on production, determine directions for development and practical measures to implement the goal and principles.
The expansion of the independence of enterprises, the appropriation of the means and results of labor by participants at all levels of economic relations (employee, primary labor collective, enterprise) and their disposal create economic, material, social incentives for self-development, the realization of a variety of interests.
The cost accounting system, like any other developing system. It acquires new properties, improves along with the development of production relations. This is facilitated by the economic independence of enterprises, the reorganization of the management of agricultural production, and the transition to a market economy.
In this regard, the question of the compatibility of cost accounting and the market is unjustified. The market, like self-financing, is an integral category of commodity production. The main features of commodity production, and consequently of the market, are the social division of labor and the economic isolation of commodity producers.
Through the market, as a consciously controlled element of the reproduction process, objective economic laws are implemented, which, under appropriate conditions, ensures the satisfaction of social needs, the continuity of expanded reproduction. Regulators of market relations are supply and demand, price, credit, taxes.
Thus, the market is a category of commodity economy, expressing economic relations between producers and consumers in the sphere of commodity exchange. It does not characterize the entire system of production relations, but only reflects the relations inherent in a given mode of production.
The systems of market relations and economic accounting have much in common. Such elements of both systems as the objective foundations of functioning, the functions performed, development factors, coincide or do not contradict each other. A number of these principles of cost accounting are also the basis for the regulation of market relations. Both self-financing and the market include such general tasks as management, coordination, and stimulation of production.
There are also differences determined by the specifics and scope of self-supporting and market relations. If cost accounting expresses the system of production relations at the level of the primary link (directly production, distribution, exchange and consumption), then the market represents only those relations that develop exclusively in the process of exchange, expressing the form of circulation of goods. At the same time, the connection between the market and other spheres of production relations cannot be denied. Economic relations in the market constitute a kind of subsystem in the system of production relations. Without exchange, the closed chain breaks: production - distribution - exchange - consumption. And since the market is based on a social need in the form of effective demand, not only production determines the market, but the market also influences production.
Consequently, cost accounting and the market are in interaction. This is confirmed by the NEP period, when high level and the continuity of production were ensured through the widespread use of market relations, and cost accounting was based, on the one hand, on the basis of taking into account market demands, on the other, on the basis of controlling the costs and incomes of enterprises. The market during this period played an exceptional role in solving the problems of cost accounting.
Self-supporting activities of the enterprise
The implementation of the principles of cost accounting and efficient management are possible if there are appropriate conditions - economic, on-farm, production, organizational, social.
In a number of economic conditions, a favorable price system is of particular importance. In a market economy, free (contractual) prices operate. However, especially at the transitional stage, they need to be regulated. As world practice shows, such a need also arises during periods of sustainable development as part of a system of measures to maintain and further boost the economy.
For agricultural products sold mainly to meet federal and regional needs, there should be guaranteed prices. They are set at a level that ensures that commodity producers receive the income necessary for expanded reproduction. Such prices are applied in cases where the average market price does not compensate for the prevailing average level of costs for the production and sale of products. Distribution of products through other channels is governed by supply and demand.
The growth in prices for industrial products should not outpace their growth in agricultural products. For these purposes, the function of the agro-industrial complex management bodies is to control changes in the indices of those and other prices, to ensure the equivalence of exchange with the help of federal and regional budgets. This is especially true of prices for scarce types of industrial products. Prices can be free for those products, the need for which is satisfied.
Parity can also be ensured in the context of sustainable partnerships between enterprises in different fields, for example Agriculture and mechanical engineering. It is effective to create joint-stock associations of industrial and agricultural enterprises, the founders of which would also be agricultural enterprises.
Agriculture is an unsustainable industry and needs special treatment financing. In all developed countries it is subsidized. The amount of subsidies is different, usually not less than 40-50% of the cost of commercial products. In addition, funds are allocated to compensate for part of the costs of holding individual events.
The Law of the Russian Federation "On State Regulation of Agro-Industrial Production" (1997) provides for the allocation of budgetary funds to support investment activities, measures to improve soil fertility, lending and insurance, compensation for part of the costs of acquiring material resources and energy carriers, developing livestock breeding and elite seed production, organizing professional training and some other purposes. However, the level of the economy does not yet allow for the full implementation of the provisions of the law.
Agriculture needs efficient system lending and insurance. Loans should be issued on preferential terms and for a long period. It is expedient to create agricultural cooperative and other banks on the principles of credit cooperation. In the formation of the share capital of cooperative credit institutions, state support on a repayable basis is important.
With an acute financial deficit, it is possible to obtain a loan secured by agricultural products and raw materials, both with and without the participation of the state. However, this form is associated with a risk for the enterprise-borrower.
The current system of taxation is burdensome for rural producers and enterprises of related industries. She's different a large number and high taxes. Often, up to 80% of the company's profits are spent on their payment. In a number of countries, the total amount of taxes is limited to 20-25% of profits, and only taxes on income, land and value added are established.
Directions for improvement tax system there may be a reduction in the types of taxes, a decrease in the taxable base by the amount of own funds aimed at improving land and modernizing production; establishment of tax incentives for agribusiness enterprises investing in agriculture, processing industry, social sphere; exemption for a certain period of time from taxation of priority sectors of production; introduction of tax incentives for newly created enterprises.
An important role belongs to on-farm production conditions. A stable production base of the enterprise is the basis for effective management. The components of this base - land, fixed assets, working capital, labor resources - must be at the level of sufficient security and be in a rational ratio, that is, the enterprise must have a balanced production potential.
The place of land in the production base of the enterprise is invaluable.
Pointing to its role, one of the founders of the doctrine of the land, J. Liebig, noted that the prosperity or impoverishment of nations depends on the state of soil fertility. The qualitative state of the land is associated with the timely implementation of a complex of agrotechnical measures, primarily the introduction of full doses of fertilizers, maintaining moisture supply. Where possible, the land area should be compact, free of stripes and wedging, with an adequate network of on-farm roads.
Forming the means of production, they proceed from the fact that their size and composition ensure the effective use of both themselves production assets, and land, labor resources.
A rational ratio of fixed production assets and working capital should be observed. It is believed that, depending on the specialization of the enterprise, it should not be lower than 1: 1.5-2.
The level of mechanization and automation of production processes, the possibility of using machine systems for the production of crop and livestock products depend on the technical equipment. It is important to have a highly equipped repair base.
Of the conditions affecting efficient management, one should single out the nominal potential of labor resources, the degree of their actual participation in the production activities of the enterprise, the age and professional composition of workers, the level of qualification, and seasonality of use.
Production conditions are closely related to organizational ones, they are interdependent. Market relations determine new approaches and ways of substantiating the production structure of an enterprise - the ratio of industries and elements of production. In the context of the cancellation of state orders for the supply of products, entrepreneurship and competition, the volume and range of products produced are focused on supply and demand. Possible situations are difficult to foresee. However, in order to avoid risk or to reduce it, before producing products, you need to compare options for its implementation, identify competitors in your region, find reliable partners, conclude sales contracts with them, preferably for a long time.
It is advisable to develop production on a diversified basis in order to be able to compensate for failure in one industry with success in another.
The production structure predetermines the organizational structure - the composition of the divisions of the main, auxiliary and service industries. Forming the organizational structure, they proceed from the optimal number and size of units, the requirements for providing primary teams with economic independence, creating conditions for entrepreneurial activity, and the manageability of the enterprise.
Certain requirements are imposed on the production and organizational structure, which must be fully taken into account when substantiating the composition and direction of the enterprise's production activities.
To organizational conditions effective management economy also includes the perfect structure of enterprise management - the composition of management bodies, functional services, their management, the order of subordination and interconnections. A rational structure allows you to effectively perform the functions and tasks of management. So, the main function of management - general management - solves the problems of foresight, rational construction of management structures, functional and organizational regulation, coordination, control and evaluation of the activities of the team, implementation of external economic relations.
Directions for improving the management structure are the optimization of functional services that determine the economic, technological, technical program; organization of the marketing service; strengthening the role of scientific, information and implementation departments (groups).
In conditions of independence of enterprises, the role of the economic service is increasing. Economic work should be aimed at observing the laws and principles of organizing agricultural production, applying economic management methods, progressive forms of production relations, organizing and material incentives for labor, developing entrepreneurship, in-depth economic analysis of activities, and developing a comprehensive program for the socio-economic development of the enterprise.
Main tasks economic work are to ensure expanded reproduction, increase production at the lowest cost, increase the independence of on-farm subdivisions, the material interest and responsibility of workers, and the social development of the team.
In market conditions, the tactics of the enterprise's behavior change: the starting point may not be the production of products and, subsequently, the search for buyers, but the initial study of demand, the calculation of the potential market capacity, possible sales volumes in terms of timing, quality and product range, and on this basis, planning and organizing production . These functions are assigned to the marketing service, whose tasks are: to determine the volume and structure of market needs for products and services, taking into account prices and costs; development of prospective and current business plans; organization of sales of products and provision of services; identification of reserves for the development of production.
At a number of enterprises, the marketing service includes a business planning group, sales departments, logistics departments, and a financial and settlement center.
The organizational conditions of production also include the development of on-farm norms and regulations, the timely and complete maintenance of planning and accounting and reporting documentation, and wide information support.
Favorable social conditions also contribute to the efficient organization of production - equipped housing for workers, electrification, gasification, telephone installation settlements, expanding the network of socio-cultural and commercial facilities, providing the village with consumer goods and services, improving working conditions and the living environment of the rural population, timely payment of earnings, a rational regime of work and rest, etc.
These conditions should constantly be the subject of attention of managers and specialists of the enterprise, management bodies of the agro-industrial complex at all levels.
Those who are older should remember how popular the idea of self-supporting was in the 80s. This is when plants and factories, as well as workshops and even brigades, were given the opportunity to steer their microeconomics. That is, they allowed the whole team to switch to a contractual basis and did not interfere in the distribution of salaries and bonuses.
T When we were unaware that the team contract has nothing to do with the economy. After all, if a plant has signed a contract for the manufacture of a thousand nuts, and the team wants and can make five thousand in order to earn more, then the whole scheme falls apart. Under socialism, of course, they still paid for the extra four thousand nuts, but much less. And then they took the products to the warehouse - until better times.
At the same time, the brigade was indignant at the flagrant injustice - the working people were little worried about the economy of a large plant. It seemed to him that the bosses were cheating, and the money was being put in his pocket.
It must be said that the bosses in their worldview differed little from the workers - it seemed to them that the higher bosses were deceiving the plant, moreover, in a more large scale. The idea of a systemic economic error has occurred to few.
With these delusions and prejudices, we came to the beginning of the 90s, when the country collapsed.
E If the USSR is presented as a large factory, then all the union republics were workshops of different size and functions in it. And when the parade of sovereignties began, almost no one perceived this process as a betrayal at that moment. No matter what anyone says today. For the most part, we reacted to the collapse of the USSR with understanding - the idea of self-financing, but now at the level of the republics, firmly settled in our brains. It was too hungry time, not up to geopolitics.
At that moment it seemed that this was not forever. This is just a way to make money directly, without the thieving and incompetent commanders who brought the country to food stamps.
I well remember the story of my father, an employee of one of the allied military departments, about how his colleague hastily packed up and left for his native Ukraine, because there he was offered a general's position. This was also treated with understanding - if that Ukrainian was offered to go somewhere to the ends of the world on the same conditions, he, too, would probably agree. In difficult conditions, in general, a year of service counted for two, and the salary was much higher.
Few people thought that the new state began its own construction. No one in a nightmare could have dreamed how it would end.
Let us return, however, to economics.
C ex cannot exist independently of the enterprise for which it was built, and there are many reasons for this. If he is transferred to self-financing, he will inevitably face insoluble problems - he will have to independently look for orders, increase overhead costs - pay salaries to managers, hire lawyers, full-fledged accounting, build his own warehouses, access roads, modernize at his own expense, and so on.
Of course, there are exceptions - if, for example, factory divisions gained independence, where initially few people worked, and the main function was the extraction and delivery of minerals that are in high demand all over the world from local mines to the enterprise. In other words, Azerbaijan, Turkmenistan, Uzbekistan and Kazakhstan are quite self-sufficient and can live in conditions of sovereignty, because oil and gas deposits were found on their territory during the Soviet era and earlier. They pursue an independent policy - each in its own way.
But even they can have problems. Sooner or later, they are very likely to face external aggression and they will need help. But the professionals from the plant's "security", who used to protect everyone from uninvited guests, remained in Russia. It is absolutely possible that someday the rich oil-producing republics, which today feel economically confident and do not spend as much money on defense as we do, will ask us for help in confronting an external enemy. And of course we will provide it.
Lithuania, Latvia and Estonia, regardless of the plant management, production shops cannot live. But they were lucky - for political, and not at all for economic reasons, they were taken over by a competitive "factory". And despite the fact that the production of these "workshops" remained unclaimed, the personnel did not disappear - they dispersed in a new large enterprise, got a job there in grassroots positions and live very well by Soviet standards.
Belarus realized in time that it is better not to spoil the production relations with the central office. In my opinion, it has achieved the ideal Soviet cost accounting solely thanks to the efforts of Alexander Lukashenko. This is a weak link - the future Belarusian nationalists will still have their weighty word to say.
Armenia, Tajikistan and Kyrgyzstan, after poking around the world and not finding "customers" but their products, resigned themselves to their secondary role and returned to where they started.
Moldova and Georgia, it seems, are still in the process of realizing their unenviable fate in this cruel world, and sooner or later they will realize that they can have a chance to provide a more or less decent life for their citizens only if they restore their former production ties. Moreover, Moldova may still have to go through the stage of reunification with Romania, which considers itself more developed. Of course, this union of beggars will only lead to tension in society and, most likely, will end badly.
H Finally, we come to the largest "workshop" - Ukraine, which, for political, and not at all economic reasons, is the entire Last year strenuously trying to change the "plant management". And this is the biggest problem for the community, because they have absolutely no prospects in this search.
The new "owners" have already wandered around the "workshop", which has acquired all the attributes of the plant - a director, a signboard, a logo and a charter, so they quite realistically imagine that under the guise of a working enterprise they are trying to sell them a huge, but terribly neglected room with broken dirty windows. It is absolutely impossible to heat it in the winter for the ridiculous money that it is able to earn on its machines of the past and the century before last. In addition, there are too many employees in the "workshop" - the EU will not provide so many jobs for nothing.
For nearly 24 years of independence, local bosses, foremen and foremen, trying to earn money, were slowly selling equipment and tools to the side at the price of scrap metal. Moreover, some of them did it quite smartly and even made a fortune for themselves on this simple matter.
Actually, what do the Ukrainians offer to the new “factory”, which they have planned for themselves as victims? Invest in the modernization of their beautiful "workshop", replace all the machines, whitewash the walls, clean up the first-aid post, bathrooms and the factory canteen. But the most important thing is to provide them with orders in the future. Because with the previous factory management they publicly broke the pots and even cut the power cable for TV cameras, which, in fact, fed Nenka with energy.
The Europeans got in. But potential new owners are very cautious and used to counting money - for a start, they gave a little to carry out reforms. That is, they asked at least to wash the windows and insert glass into them so that the “workshop” began to penetrate sunlight. Heated discussions began in the factory circulation about exactly how washing would take place, what color the rags should be, what kind of solution should be used, where to get glass cutters and glaziers, whether their qualifications were sufficient, and whether it would be better to hire foreigners.
However, it soon became clear that while noisy activists were dreaming about how light it would soon be in their dark shop, the money issued for reforms was simply stolen. Europe, seeing in a month all the same dirty windows, was puzzled and decided that she would never invest in this strange production, which is run by such a thieving public.
Moreover, no one needs the products that theoretically can be produced here. It's plentiful everywhere and much cheaper.
Ukrainians still naively consider their "workshop", which has formally turned into a "factory", a tasty morsel for the West, Russia's competitor. But they will be disappointed - an independent power is larger than Moldova, Lithuania, Estonia and Latvia combined. Such a state with a self-supporting thieves' mentality of any leadership, no matter how Maidan takes it to the very top, cannot exist independently, and no one but us needs cooperation with it.
However, now we don't really need it.
R Russia after the collapse of the USSR turned out to be both easier and more difficult than all at the same time. It is more difficult, because we continued to feel responsible for the population that remained in the territories that had fallen away, and tried to build on this basis relations with new countries that arose on our outskirts. Hence cheap gas and other preferences that long time received by the former Soviet republics.
It's easier, because it's easier for us to make up for lost production. In Russia, the state-forming elite has always been concentrated, the best managerial personnel, which the center sucked out of the provinces to solve common problems, and most importantly, a sense of continuity. That is, Moscow, as it was a “plant management” under the Soviet Union, has remained so, despite the loss of “shops”. With all international relations, existing interstate agreements and membership in international organizations. Up to the fact that we both were and remained a member of the UN Security Council, and the embassies of the USSR were inherited by Russia.
Of course, over the past two decades, we have come to understand that the heads of the "shops", who have become directors of small "factories", do not seek to return to their former role - to carry out the commands of the center. Now they are absolutely out of control, and they live much better than in Soviet times. Unlike their "workers", who are constantly instilled with the thought of the delights of their newfound freedom.
Faced with outright hostility, Russia finally set about replenishing the lost production facilities, if only so that former subordinates would not feel like indispensable members of the ex-Soviet cooperation and would not sell their rather modest participation in a mutually beneficial business at exorbitant prices. It turns out that we ourselves need independence from their whims and arrogance, which today is considered politics among the heads of workshops, foremen and foremen.
Economics is a very evil science. She does not forgive the mistakes of those who ignore her laws. Therefore, the fate of Ukraine will be the saddest among all former republics THE USSR.
Conducted a round table on the topic “Experience in the application of the internal cost accounting system in Russian companies". The round table was attended by top managers and specialists of companies that have successfully implemented and apply the internal cost accounting system, as well as consultants - experts in the field of self-supporting system implementation.
According to the materials of the round table in the journal " CFO» published the article “How to force the divisions of the company to reduce costs”
We publish the full transcript of the discussion.
Part one.
What is "internal cost accounting". Advantages and disadvantages of the system.
Alexander Kochnev, Managing Partner of ITeam consulting company
The first thing I would like to talk about is the concept of cost accounting. What is the management system, which is called cost accounting, and what problems it allows to solve, many people understand differently. As part of the preparation of this event, we formulated the following distinctive features of this management approach.
The subdivisions of the companies are endowed with a certain autonomy within their area of responsibility, i.e. have certain resources and manage them independently. Also, a part of the company's assets can be transferred to them.
In relations between divisions, internal tariffs are established. Divisions begin to operate on the principles of "customer-supplier", that is, they buy and sell their products and services from each other.
A system of motivating managers with a focus on financial results is being introduced. Divisional leaders are no longer just focused on operational performance, they are beginning to understand how they contribute to the financial result of the company and what results to expect in various divisions.
A certain formalization is introduced in the interactions between departments. Indeed, when working on the “customer-supplier” principle, certain rules, procedures and workflow become necessary. Relationships become more complicated, more formal.
Units are endowed not only with certain powers, but also with responsibility for achieving results, as well as for errors and losses associated with their activities.
It is clear that the implementation of such a system is not an easy task. And everyone who has done this knows this very well. What problems do you want to solve as part of the introduction of the cost accounting system? In my opinion, motivation is at the forefront. Initially, the problem of increasing motivation, primarily managers, is solved, and its consequence is the solution of a number of other tasks. For example, overcoming losses associated with theft. The right motivation encourages people to act more carefully, more economically in their areas. Responsibilities that were previously blurred are more clearly shared. The activity of companies in the market is increasing due to the fact that not only the top management, but also the heads of sales and sales support departments care about the results of the company's activities. Thus, the company is already more active in the market and seeks to develop new markets. Innovative activity is increasing, that is, the orientation towards the release of new products. But all this - with the right motivation - is embedded within self-supporting relations. And, finally, there are financial performance indicators of departments: measurable and, in a sense, unified. They are a universal measure of the activities of various departments, including those working for internal clients, i.e. inside the company. As a result, cost reductions are expected as each division struggles to reduce its own costs and improve its performance. Capital turnover indicators increase, that is, accounts receivable decrease, inventories decrease, turnover increases at all stages of working capital formation, profitability increases. The overall return on equity and the value of the company increase. That, in my opinion, is what those who want to introduce self-financing at their enterprise are striving for.
Vladlen Lunin, CEO of Martex Group
I would like to add a few words about the definition of cost accounting. There is another lot important factor, which is not always taken into account. This is building independent market relations within the company. This requires one more attribute free market– voluntary principle of service consumption. The enterprise has a very narrow set of mandatory services - mainly related to security. Because as soon as we make a service mandatory, we monopolize it and freeze costs in this area. And the whole task of the control system is to ensure not only to ensure economic indicators or some other abstract things, but to create constant pressure on non-production costs and constant stimulation of innovative activity in product development or cost reduction.
Of course, different circumstances must be taken into account. But we must strive to make the transition to self-financing voluntary. Possible variant– introduction of outsourcing to inefficient internal divisions. If the services provided by internal divisions are of lower quality than in the external market, then they are detrimental to the company. By comparing their services with those of external outsourcing companies, we force internal divisions to become as efficient as those on the market, or even more efficient. Thus, preferences are determined voluntarily. Sometimes we forget about the contractual principle. Many say: "We are all brothers, we have a holding company, let's force the divisions to buy our services." However, this is contrary to the principles of cost accounting. The voluntary principle of service consumption is an important factor in the introduction of cost accounting, it decides a lot.
Second important point, which you did not pay attention to, is the complete freedom of the heads of departments in the formation of the budget for income and expenses. I'm talking about initiation. For example, we do not include in the budget of departments the payment for the work of a secretary CEO. Because the CEO's serretar is the CEO's resource, who has his own budget - from which he finances her work. Meanwhile, when applying self-financing, they often act as follows: “Let's divide the costs according to some general principle: by the number of people, by area; but most importantly, approximately equally. In cost accounting, the main principle is: not equally, but according to consumption. That is, those who need the resource pay for it, those who do not need it do not pay. No one needs accounting, except for the general director and the owner - they pay for the accounting. If the department does not want to pay for the resource, then you need to look for someone who will pay for it. The resource can be subsidized by capital. If “Capital” (a division of the general director) cannot explain to itself why it should be subsidized, then this resource must be liquidated. There must be very strict principles. Cost management should be completely transferred to the lower level. It is not correct to draw up a budget of expenses and lower it to the department from above. With this regime of budgeting, everyone has the right not to be responsible for what is assigned to him. With self-financing, the unit is responsible for the costs that it chose itself. Revenues can be influenced by launching new products and selling them for more or more because of their novelty. the income received can be managed according to the principle of copyright for innovations. For example, the department has developed New Product, and automatically this product was included in the “license” of this division, which indicates which products the division sells. As a result, the department received new channel receiving income. Thus, we give the head of the division full control over income and expenses ...
Further, it is necessary to transfer managerial powers from top to bottom, that is, the management of marketing functions, the economics of the unit, business planning, financing of the unit's activities should be transferred to the head so that he is responsible for the profitability of his unit. In self-financing, it is necessary to focus on profitability, and not on some abstract indicators.
It is also important to ensure that top-level leaders do not interfere in the affairs of lower-level leaders. It is clear that this becomes possible at a certain stage, not immediately, because. At first, people are not ready to take full responsibility. But over time, senior leaders should stop interfering in the affairs of departments. Because when intervening, it is pointless to ask anything from the units. So, the basic principles that I would like to draw attention to are the full financial responsibility of the heads of departments and the non-interference of the top-level head in the affairs of the heads of the department.
Mikhail Korkishko, external manager of the FIS group of companies
These problems are understandable, but simply listing them without specifying their interconnections may even hinder the introduction of cost accounting. One of the problems faced in the implementation of cost accounting is how to correctly determine the products that the unit produces. If this is done incorrectly, for example, if there is no link with the goal of achieving the well-being of the company as a whole, then the unit, when introducing cost accounting, begins to work to the detriment of the company, improving its financial performance by worsening the work of the entire company.
In addition, I want to say that if in Moscow - big choice external services, there are simply no alternatives on the periphery. For example, I had to work near Nizhnevartovsk, in the city of Megion. There is located whole line city-forming enterprises. It is almost impossible to find an alternative to internal sources, up to the repair of cars.
There is another difficulty: the introduction of cost accounting requires a transformation of the organizational structure, and possibly (if several enterprises are involved) the legal structure of the group of companies. The legal structure is the most conservative, it reflects the process of formation and consolidation of the company. Organizational structure also conservative, it reflects the culture and traditions of the company. Often in the current structure, responsibility for products is blurred between different departments. If we want to concentrate responsibility, then a mandatory transformation of the organizational and, quite possibly, legal structure is required.
I would also like to note the following problem that we encountered when introducing self-financing. The introduction of cost accounting or, as it was said, market relations within the enterprise, puts forward completely different requirements for the management of structural divisions: each manager must become a businessman-entrepreneur. Perhaps this is one of the most important problems that hinders the introduction of market relations within the enterprise. Not only do we have few middle managers, but we still need to find an entrepreneurial leader. Question: why would a leader with entrepreneurial talent work inside the company at all? He can create his own company, develop his business on modern market. There is no reason for a person to work for some company owner when he is an entrepreneur by nature.
Now about freedom of choice. There is really no freedom of choice, even when it seems that there is. If we introduce complete freedom of choice, we will increase centrifugal forces within a group of companies or within structural divisions. In one of the companies or in a division, the question will arise: if we normally work at market prices within the company, then why are we inside? Such a company or division will be spun off and will operate freely outside the holding. In this sense, we will destroy the enterprise.
Replica: But there is an investment resource - the brand of the company.
Mikhail Korkishko
Wait. An investment resource, a brand - all this concerns the business as a whole. And we are starting to transfer service departments within the company to self-financing: supply, vehicle fleet, lawyers, etc. However, after a while, if complete freedom is granted, it turns out that they no longer need a brand or anything else. Therefore, with the provision of freedom to units, you need to be very careful.
In addition, when introducing self-financing, we often encountered the fact that everyone was transferred to self-financing. What for? Why spend colossal resources on determining the products of a structural unit, on finding management personnel, on developing indicators, on introducing accounting, if this unit makes an absolutely meager contribution to the common cause? When introducing self-financing at enterprises, it is necessary to focus on the main backbone of the business, on key divisions. In other words, self-financing should be introduced in subdivisions of the consumer value chain.
I would also note that those enterprises that are experiencing a growth crisis face the problem of reorganizing the activities of departments. That is, a small enterprise develops into a medium or medium - into a large one, and a rather tricky nuance of interaction arises. For example, the business was started by a certain community of comrades. And not necessarily they were the owners at the time of the start of the business. And the obligations of these comrades among themselves were not initially formalized. The business grew, and it turned out that the profit from the business belongs to only one or two owners from this group of comrades. This is despite the fact that when this business started, many people made contributions to it, so that it began to develop at all. Accordingly, after some time, a completely abnormal psychological and social situation is created at the enterprise. The "ancestors of the business", who are not owners, namely the founders, informally share responsibilities among themselves and within the company begin to create their own mini-businesses. But these mini-businesses are still generating revenue from the overall business through kickbacks, inflated prices, and so on. That is, the conflict between the owner and those who started with him can be a big problem when introducing cost accounting.
Posudnevsky Oleg, managing partner of the SoftProm group of companies
Based on my experience of implementing a self-supporting system in one of the holdings, and further communication experience in the provision of consulting services, I can say that the introduction of internal economic relations, if they are based on simple and understandable rules, ultimately leads to the “washout” of inefficient units and to improve the overall efficiency of the enterprise. When evaluating the result of the introduction of cost accounting, one must understand that in the short term it is always additional costs for setting up this accounting, for harmonizing norms, for introducing new principles. When endowing divisions with independent capital and resources, as a rule, it turns out that more resources must be given than the division initially has. Ultimately, business efficiency improves in 2-4 years. The first year or two will be expenses, and then - a positive effect. As for centrifugal costs, I would like to object here! If divisions that start doing business on their own can enter the market and sell alternative services, and they do not need to hold on to the internal consumer, this simply says that such a market exists. For this service, for this product, there is an alternative. Therefore, it is possible to clearly assess the effectiveness of the unit. Don't be afraid of centrifugal costs. Still, the damage from the activities of an inefficient unit is much higher than the risk of losing some part of the company. Moreover, in my practice, such a loss has never happened. If a unit can provide services both internally and externally, it will simply increase resources, it will receive additional funds, and it will start earning both on the external market and within the company.
Alexander Kochnev
What prevents centrifugal tendencies? Indeed, such a danger exists.
Vladlen Lunin
It is necessary to impose sanctions. First of all, the division must provide services within the company. If it becomes overly involved in external services, it must compensate the company for the losses incurred as a result of non-fulfillment of agreements on internal services. Thus, earned in the foreign market goes to payments for domestic sanctions.
Alexander Kochnev
But still, there should be a regulated market, and not a free one?
Vladlen Lunin
Naturally. It is prescribed what services, internal and external, should be provided, what are the conditions for the provision of services, tariffs. Time, quality of services, sanctions and so on are prescribed. Everything is very clearly regulated by internal documents, so all centrifugal tendencies are eliminated: divisions are primarily interested in working for the domestic market. If a division has learned to work equally well both in the foreign market and in the domestic one, you just need to divide this division. One part of it becomes completely market-oriented, is called a profit center and gets a whole bunch of problems, because now it needs to maintain competitiveness in the external market. And there is no time for jokes. This is inside, when the account system has not yet been established, it seems that something is cheaper on the external market. With the correct calculation of the cost of internal services, this happens very rarely. Inside, in the conditions of the socialist absence of an account, it is almost impossible to learn how to do something qualitatively. But if it worked out, they were divided into two parts and forward. One serves further internal divisions, the other makes money in the market, if it seems that the work only in the internal market is already detrimental to the division.
Mikhail Korkishko
There is a contradiction in your words. On the one hand, we allow free choice and competition of internal units with external service providers, despite their professionalism and so on. But if a division within a company successfully competes with external service providers, why then can't it do the same outside?
Vladlen Lunin
If we consume internal services, then we pay money for them. If we pay money, it means that the unit providing services has obligations, that is, a system of internal contractual relations is being formed. It should be written there that if the unit was paid money, then it must provide the appropriate services. If it violates the terms of the contract, the consumer units will refuse its services. The use of the services of internal divisions does not imply the possibility of a breach of obligations. Otherwise, all relationships will collapse.
Oleg Posudnevsky
One of the key principles of internal relations in such a company is the priority of internal services over external ones. Yes, it is possible to work with external agents, but internal obligations secured by relevant agreements take precedence. However, these obligations must arise. And at the moment of occurrence, alternatives are indeed possible here. You can establish an agreement with internal suppliers, or you can buy a service in the external market. Practice shows that people are afraid to go to the foreign market.
Mikhail Korkishko
I want to object. Internal divisions are afraid to enter the external market because they are not businessmen.
As for the issue of separating the internal division and creating a profit center, the problem of business dilution arises here. In other words, there are many directions within the business that, to put it mildly, begin to compete.
Lunin Vladlen
If they bring money, why not? If they are effective in this market? And, moreover, they are really effective, and not due to the cheapness of some internal resources.
Alexander Kochnev
In principle, such a way is possible, when we release some kind of enterprise that is already well-seasoned in the market. And it becomes an external counterparty to support the parent company.
Oleg Posudnevsky
I can bring specific example when, in the LIT group of companies, the warehouse division of the trading company, which was quite efficient and had a surplus of space, began to operate on the market. It began to successfully interact with large customers in the market. When the scale of this business grew, and the relationship with the internal sales division became much smaller in scale than the work in the market, a separate trading warehouse was created. For some time he performed work on the order of a group of companies, and then the trading division again organized its own warehouse. And this business remained independent.
Vladlen Lunin
A similar example is the emergence of MIAN, which also provides services in the foreign market. This is a natural course of development. If a division wins in the market, it means that it can stand out, but not break away from the parent company, because it has a credit resource for the development of various business areas. It is very difficult to just jump into the market and exist independently. Anyone who makes a business from scratch knows what it is. From the inside it seems that everything is easy. I believe that it is possible to make sure that these companies do not leave the holding.
Replica: What can be done in order not to lose the company and at the same time increase its efficiency. What are the main regulatory mechanisms?
Vladlen Lunin
- Licensing of activities.
- Product Licensing.
- Clear regulation of core activities.
- Description of the product and the scheme of its implementation. For example, the given profitability is 15 percent and the planned turnover. If the task is not completed, then the head of the unit is in danger of losing the right to manage his unit.
Oleg Posudnevsky
Allocating resources to the internal unit.
Alexander Kochnev
Resources are not transferred in their entirety. They are, in fact, transferred to management. The owner always owns the company, and capital and assets are transferred to the division for use.
Mikhail Korkishko
Tariff policy. Pricing. Control over pricing.
Alexander Kochnev
What else matters? The investment is owned by the parent company, even if the divisions are treated as separate businesses. A business can live without investment, but it cannot develop. And investments need to be managed only from above. The profit of the business unit is withdrawn, part remains for bonuses, something - for independent development, if provided.
Oleg Posudnevsky
That is, the unit cannot independently reinvest its profits. This decision must be made by the shareholders of the company.
Mikhail Korkishko
The profit of a division within a company is often generated from the expenses of other divisions, so investments must be managed from above.
Oleg Posudnevsky
It was said here that the reason for the collapse of the company and the separation of individual divisions from it is often the activity of the owners, who actually pull the organization apart. It is very important that the position of the owners be consolidated. The risk of collapse exists when different parts of the company are managed by managers who are also owners. Owners must be removed from the management process. When the position of owners is consolidated and managers manage the company, this risk is significantly reduced.
Yaroslav Alekseev, BEST-leasing company
As far as I understand, a company should have a strategy that it is going to implement. Cost accounting can be a tool for implementing this strategy. It may not be cost accounting, but some other management tool. There are many such tools. I think it is wrong to say that some problems arise as a result of the introduction of cost accounting. Such problems are defined and regulated by the company's strategy and various instruments, in addition to cost accounting. Moreover, the following statement is not entirely clear: the cost of internal services of a company, as a rule, is greater than the cost of services in the external market. If so, one can only feel sorry for this company. This means that it works extremely inefficiently. Because the cost of those companies that operate on the market was, at a minimum, based on the cost of capital and the rate of return, which, as a rule, should not be in internal pricing. To say that professionals work in the market, but in our company - so-so, someone came from the side and does not know how to provide services? Hire professionals in the market, they will work just as efficiently as in the external market, and even better. As for the services of those divisions that may separate, it should be noted here that we are developing not just the services that are on the market, but only those that we need to implement our strategy. And in this regard, it is incorrect to say that, due to their effectiveness, they will be in demand by the foreign market. In the foreign market, these can be completely different services with a different level of quality, with a different content. In addition, it has now been said that there is a big difference between Moscow and non-Moscow. I have not heard that in Moscow there is a large outsourcing market for some services. Maybe just IT and accounting. Everything else - try to outsource.
As for the fact that the owners - top managers will pull the company apart? If you have business leaders who ensure the efficient operation of departments that participate in the self-supporting system, then this is very good. I think that there are only a few people who can organize a business effectively. Your happiness if they are in your company. As a rule, there are no such people. At the same time, if you understand that you have such a potential, and these people are striving to start selling services on the foreign market and earn money, make them partners in your business, let them receive part of the profit and the added value that they create for you. Your company will only benefit from this. If they can make money in the market, let them make money. These are the development options.
The point is that, on the one hand, the head of the competence center should have freedom in determining income and expenses. On the other hand, the thesis was voiced that he should act within the framework of strict regulations, that he should be subscribed to some services. But in fact, the services it provides must be bought by someone. And these services should be clearly articulated and clearly described. If these services are formulated and described, then first of all this unit, the competence center, should strive to fulfill the needs of its internal customers. If, again, he is lucky, and he can enter the foreign market with these services, that's good.
Mikhail Korkishko
And what is it for? In order to minimize the cost inside. For example, we have a transport shop with an excess of equipment. If he is idle, then his services will be unreasonably expensive. If, in unoccupied periods of time, the domestic service provider brings them to the external market, he will be able to reduce the domestic tariff at the expense of this income and satisfy everyone.
Yaroslav Alekseev
I heard another example of solving a transport shop problem: one of the executives complained that they had 10 machines that were very hard to use efficiently; I need to use them somewhere else. In response, another manager said that they had sold all the cars in the bank, abandoned all drivers and left only one. So the problem was solved. If you have some free resources that are not used within the company, it is better to sell these resources. There is a strategy strategic goals. You strive to realize them. You should not be left with resources that do not have customers. If they are, then you will not be able to use them effectively. Simply because they prevent you from focusing. If there are such resources, you don't need them.
Mikhail Korkishko
If they are voluntarily consumed within the company, then they are needed. So, the person found how to optimize them.
Alexander Kochnev
See what kind of situation often occurs. The company has expensive resources. It could be anything. For example, a qualified analytical department or an IT department, where great specialists work. Or a transport base that is used unevenly. The company does not need to constantly download this resource. I do not want to lose him, because he is in demand. In this situation, it is just convenient to use some part of this resource in the external market. First, it reduces its cost to the company. Secondly, it does not lose its potential. Chrysler is an example. It has highly qualified strategic analysts who are engaged in market analysis and strategy development. They have internal rule A: about 50 percent of the work they have to look for in the external market. Thus, the company does not reduce the number of specialists. The same is true for IT employees.
Alexander Kochnev
Why is this being done? So that specialists do not sit without work. There are two benefits here. They earn and bring additional income. Secondly, they do not lose their professional level, but work and solve real problems.
A special economic category that expresses relations in the sphere of distribution, production, consumption, and product exchange. Many aspiring entrepreneurs are trying to understand what cost accounting is and how to use this economic term in their activities. In the context of the transition of the country's economy to a market option, this parameter is an important economic concept.
Features of self-supporting
This is a form of economic relations, material interest and responsibility between enterprises and the state, between the base company and its structural divisions between companies, and within organizations.
The introduction of self-financing implies rational management of the economy, payback of the costs incurred, the implementation of the savings regime, and the guaranteed profitability of the organization.
The essence of economic accounting
It consists in a combination of means and mechanism, thanks to which the final result appears - a full-fledged production management. It is the full cost accounting on the basis of commodity-money relations that guarantees the conformity of the resources of agricultural enterprises with the results of their direct activity. The system of such relations reflects the constant movement of resources, the renewal of the circulation of the company's funds. Arguing about what self-financing is, we note that it expresses which develop on the basis of financial and in companies of all forms of ownership.
Self-supporting scale
This term refers to the entire sphere of production relations built on the basis of terms: money, cost, product, cost, price, profit. The conditions of cost accounting are as follows: within the company there is an interaction of economic categories according to the laws existing in this area. It should be noted that the organization combines the labor force and the means of production, in connection with which the process of manufacturing products is carried out directly. All the basic principles of cost accounting can be attributed to the enterprise.
Features of agricultural organizations
The main development of cost accounting for such companies is determined by important principles:
- self-financing and cost recovery;
- state regulation of the economy, as well as self-government of the team;
- material interest of individual workers for the result of production;
- control over the financial activities of the organization.
Self-financing involves covering all costs by the company at the expense of personal financial resources. The proceeds of the company from the sale of its products should be enough for the accumulation and consumption fund. The state has the right to regulate such market parameters as tax and interest rates, tariffs. By controlling their level, it gets the opportunity to create optimal conditions for the sale and production of goods.
How to make cost accounting effective
It will be effective if, in addition to the principles mentioned above, each member of the labor collective will qualitatively fulfill the duties that are assigned to him. If the employee does not have a personal material interest, there will be no question of any efficiency. The enterprise should create a special incentive system for employees. It includes a variety of bonuses, additional payments at the end of the year, financial assistance. Only with the relationship between labor productivity and decent pay, the employee will be interested in the result, and the company will be able to count on significant profits.
In addition to material interest, such a factor as responsibility for the expenditure of monetary resources is also important. Responsibility for the use of material and monetary resources should be provided. In reality, this principle involves the commensuration of costs with the results of economic activity at each stage of production. With the constant control of the “ruble”, full self-supporting state-owned enterprises are implemented.
The importance of the financial and banking system for self-financing
It is the financial authorities that constantly monitor the timely payment of taxes by state and private enterprises. The use of credit sanctions by banking structures stimulates the heads of organizations to look for an option for the effective use of all available resources. Such methods of influencing enterprises as repayment, targeted use of loans, urgency, allow banks to influence the circulation and production of goods, timely identify and propose ways to eliminate mismanagement losses, unproductive expenses, and check accounts. Many companies are afraid of cost accounting, realizing that it has a lot of "pitfalls". This system is constantly being modernized, developed, and keeps pace with the changes taking place in the domestic and world economy. So what is cost accounting? This is where all the elements are interconnected.
Varieties of self-support
There is a subdivision of cost accounting according to the form of organization into on-farm and general economic. The first option involves economic relations with the state or other companies of individual farms. On-farm accounting is associated with relationships within the enterprise itself, for example, between individual departments. Among the currently common methods of management, the leading positions belong to three calculation options: commercial, intracompany, economic.
Economic accounting extends today to enterprises that are fully or to a greater extent owned by the state. Its task is to ensure the effective operation of the organization, aimed at full cost recovery, as well as dynamic development.
Commercial calculation operates at enterprises of all types of ownership, aimed at obtaining the maximum material profit. Commercial structures can count on state assistance, or a transfer. Cost accounting in this case depends on the volume of products, as well as the degree of independence (financial independence) of the company.
To compensate for the costs incurred, company owners are looking for ways to reduce financial, material, and labor resources. A feature of this variant of self-financing is the provision of operational independence to branches and subdivisions.
Intracompany settlement arose as a kind of financial relationship within the company. Its task is to create a full-fledged, balanced activity of all departments of the company.
The relationship of these three models is carried out through the economic mechanism.
Elements of the cost accounting mechanism
These include the following components:
- system of planning, stimulation, responsibility;
- a subsystem containing information, property, legal support;
- subsystem, including cooperation, organization, specialization.
Conclusion
Cost accounting provides a stable operating company with full reimbursement of costs incurred, stable profit. The company must receive such income that would fully cover the costs of production and have a good profit. The organization has a real opportunity for complete independence in its economic activities. The company itself plans sales, production, hires employees, manages property. Any self-supporting enterprise has its own bank account, complete system accounting.
Each enterprise has its own bank account and can receive loans from banks and other credit institutions. It also has an independent balance sheet and a complete accounting system. In case of improper performance by employees of their official duties expected If the enterprise fails to fulfill the output plan, if its quality deteriorates, the production of defective products, the irrational use of equipment and material resources, the company's income is significantly reduced. As a result, relations with customers, banks, suppliers of raw materials are deteriorating, there are problems with paying taxes, paying wages to employees. The results can be quite deplorable for the company, from administrative fines to complete bankruptcy.
Economic accounting (cost accounting) on collective farms and state farms is a socialist method of planned economic management, in which collective farms and state farms reimburse their production costs with money from the sale of products, receive profit and ensure the profitability of production.
Thus, self-supporting enterprises are self-sustaining, but this does not exclude the possibility of using bank loans and, in some cases, appropriations (gratuitous payments) from the state budget. In economic accounting, the centralized (state) management of the economy of agricultural enterprises is combined with relatively free management of the economy: each enterprise disposes of its main and working capital, has an independent balance sheet, bank accounts, enters into contracts with other enterprises, hires labor force receives bank loans.
The self-supporting independence of collective farms is predetermined primarily by the collective-farm-cooperative form of socialist property.
Each collective farm runs its economy at its own expense, the state provides assistance to the collective farms mainly in the form of credit, that is, in a returnable form, and is mainly interested in increasing the volume of state purchases of agricultural products from the collective farms.
State farms are less independent, since they are state-owned enterprises, and all the means at their disposal, as well as the products produced, are public property, that is, state property. Therefore, the state intervenes to a greater extent (through planning and financial control) in their production and economic activities.
The self-supporting relations of agricultural enterprises with the state are practically expressed in the fact that the state, through higher organizations, sets individual (most important) targets for enterprises (for example, for collective farms - purchases of basic types of products, state farms - the volume of production, and some others) and controls their implementation, and enterprises have the opportunity to independently plan other indicators and use all means and methods available to them to fulfill the plan and ensure continuous growth in production efficiency.
Self-supporting relations develop not only between agricultural enterprises and the state, but also within the enterprises themselves - between the economy as a whole and its individual divisions - departments, production sites, farms (the so-called on-farm settlement), which also have a certain independence in work, observe a strict regime economy, which allows reimbursement of production costs with their own money, are financially responsible for the results of work (quantity, quality of products and the cost of its production), which determine the wages of collective farmers and the wages of state farm workers.
Self-supporting enterprises themselves create economic incentive funds and other funds necessary for the fulfillment of the tasks assigned to them by the national economic plan.
Thus, based on the principles of self-sufficiency and profitability of enterprises, their economic and operational independence, financial responsibility and material interest in the results of economic activity, cost accounting is a powerful tool for national economic planning and contributes to the achievement of the greatest results in the interests of society at the lowest cost of material resources and labor.
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