Accounting and analytical support of management decisions in the short term

Abstract

Market economy with its inherent characteristics makes high requirements for analytical support of possible management decisions, which are focused primarily on the ability to continue the business in the long term on the basis of the efficiency of activity. In the system of information support of business, the most important role is played by a system of accounting with its components: financial, managerial, operational accounting, which logically follows from its informational function, and the functional purpose – the possibility of making management decisions. To achieve efficiency, the enterprise needs to have information about both financial and non-financial indicators, which can serve as key performance indicators. The role of information provision in society is increasing in the context of digitalization, which is based on digital technology that is developing exponentially. The digital economy involves the maximum automation of business processes and their analysis to the level of digitalization, which allows determining the real need of the enterprise to configure specific processes to use an electronic format. The study notes that the basic concept of accounting – going concern – lies at the origins of the study of accounting and the analytical potential of possible management decisions. Among the criteria for assessing the possibility of functioning in compliance with the principle of going concern, the indicators of solvency should be highlighted. The study reveals that in recent years, Ukrainian enterprises have been characterized by a negative value of working capital, which is a consequence of unprofitable activities. The negative value of working capital in addition to the potential insolvency indicates that part of non-current assets is covered by short-term liabilities, which is extremely unacceptable. This situation imposes a real threat to the continuation of the business due to the inability to meet its obligations in full and on time. The organization of managerial analysis, planning, and internal audit based on the cross-cutting integration of managerial accounting data can be one of the ways to improve the efficiency of current operations. With a fairly limited amount of information, the degree of influence of factors on the financial result, the cost per 1 UAH of production, and profitability, etc. are determined by conducting a multi-factor analysis.