METHODOLOGICAL ASPECTS OF DEVELOPING AN ANALYTICAL CHART OF ACCOUNTS FOR MANAGEMENT ACCOUNTING

Abstract

In the article the author considers the use of the chart of accounts in management accounting, analyzes its shortcomings and proposes the development of a more appropriate chart of accounts for management accounting in order to increase the relevance of management reporting. The main problems faced by business in management accounting without a chart of accounts are considered. The criteria for developing an analytical chart of accounts for management accounting are proposed. The structure of the management accounting chart of accounts is proposed, in which there are two key sections: permanent and temporary accounts. Permanent accounts form the balance sheet and keep the balances at the end of the period, while temporary accounts are closed at the end of the period and are used to form the statement of financial results. The structure of permanent accounts corresponds to the main objects of the balance sheet: assets, liabilities, and equity. The structure of temporary accounts corresponds to the main categories of income and expenses of the statement of financial results. The article proposes an approach to the development of the chart of accounts, which includes several stages: the formation of management reporting forms, the creation of analytical accounts, the definition of the hierarchy of accounts, the development of coding, integration with information systems, continuous monitoring and improvement of the chart of accounts. Building a management accounting system based on the chart of accounts proposed in the article will increase the analyticity of accounting information, provide transparency and clarity of the collection of disparate data in the final management reports. It will allow to quickly find in the accounting system the necessary information on reporting objects.