Management Accounting As a Tool For Organization Of Information On Innovations

Abstract

Innovative activity determines sustainable development and increases competitiveness of business entities. At the same time, high levels of risk of innovative activities, huge costs and the challenge of choosing sources of financing for the innovations are the main factors that hinder the formation of an innovative model of economic development. The purpose of the article is to generalize, systematize and develop methodological approaches to the formation of high-quality, complete and reliable information for investors, owners and managers of companies, which would ensure transparency of cash flows, control over efficiency of invested funds use, and minimization of business risks. In innovatively oriented companies, development of the necessary information base is carried out within the framework of internal management accounting systems. An important tool for collecting information about innovations is performance-oriented budgeting models, in which, on the one hand, spending of targeted funds is carried out in accordance with the principle of centralization, and, on the other hand, the set goals are achieved in accordance with the principle of decentralization, ensuring planning, execution and control of budget expenditures in direct connection with the specified and achieved results. The authors have developed a model taking into account companies' specifics (industry, scale of business) and information needs of its users (heads of organizations, investors, owners and the state) and which is oriented on determining the cost limit of the products being developed at the stage of research and design. The article proposes, as an important aspect in organizing a management accounting system for innovative activities, the use of flexible budgeting, which stands out by providing a hierarchical structure of indicators considering the lifecycle stages of an innovation, variability, and formation of an integral indicator that allows for monitoring and evaluation of efficiency of the general budget that characterizes the development strategy.