Conceptual Foundations of Management Accounting in Budgetary Institutions

Abstract

AbstractBudgetary accounting is used in budgetary institutions to ensure state goals. Nevertheless, for more effective functioning, it is necessary to introduce management accounting tools, which help solve operational tasks and develop strategies and tactics of the institution. The conceptual foundations of management accounting in the process of identification, measurement, accumulation, analysis, preparation, interpretation, and presentation of financial and production information contribute to operational and strategic decision-making by the management of the organization. The research part is based on the results of an expert survey. Respondents were experts in the field of accounting, grouped into three focus groups: accounting specialists of a budget institution, accounting specialists of a commercial organization, and researchers (teachers). The evaluation of the effectiveness of the research is based on a comparative analysis of the aggregate data for all experts and between different focus groups of specialists. The theoretical basis of the research includes the author’s scientific works in the field of management, budgetary, and financial accounting. Based on expert opinion, we proved the relevance of the functioning of management accounting in the institutions of the budgetary sphere, where the most popular tool is budgeting. During the research, we considered the key differences between the main categories of management and budgetary and financial accounting. We also assessed the barriers to applying management accounting in the institutions of the budgetary sphere. Based on the research results, we introduced the management accounting concept of budgetary institutions. To ensure an effective operation of a business entity in today’s economic environment, all levels of management must be provided with relevant and reliable information. This information can be obtained through management accounting. To establish the differences and individualization of management accounting of budgetary institutions, we considered the key categories of management and budgetary and financial accounting. Based on the accounting data, the subject can, in the early stages, identify possible problems that could entail negative consequences, thus ensuring the economic security of the institution. This research is based on theoretical knowledge and the opinion of experts from various fields. Thus, the results largely appreciated the relevance of the conceptual foundations of management accounting in general and for institutions of the budgetary sphere in particular. The advantage of accounting is its setting on the basis of individualized organizational and economic characteristics of the institution. The evaluation of the study results of the conceptual framework of budgetary institutions has shown that the management accounting for them is as important as for commercial organizations.KeywordsManagement accountingBudgetary accountingFinancial accountingManagement accounting for budgetary institutionsBudgetingBudgetary institutionsCommercial organizationsManagement accounting toolsLimitations of implementing management accountingFunctions of management accountingJEL ClassificationP40P47P49