Budgeting Methods Research Articles

Elders in natural disasters: Community-based health organization (CBHO) education and preparedness.

The awareness of the elderly needs and assisting requirement should be added to education and preparedness disaster plans. In this study, we want to reach a comprehensive training program considering goals, objectives, time, budgeting, target group, syllabus, educational strategy, and teaching methods for CBOs interested and being served elders in disasters. This qualitative study has been done via interviews with key informants in CBHOs and NGOs and the ministry of health agents in Iran. Besides, content analysis of the documents and instructions provided by the government to direct partnerships with NGOs was reviewed, and focus discussion group to conduct a deductive content analysis research. All data were analyzed with MAXQDA 18. Content analysis reached two main goals and seven objectives. The first goal refers to the fact that an educational program should direct not only subjects concerning disasters' effects on the aging population, but also discerning elders' different needs, giving priority to the supply of the basic needs of elders, and looking ahead the physical and mental problems of the elders. The second goal refers to relief skills that CBHOs stakeholders need to obtain for serving elders in a disaster through participating in various exercises. The results can guide community-based stakeholders in considering all the needs of the elderly during disasters and teaching all the syllabus of this research would reduce the adverse effects of disasters on the elderly.

СТРАТЕГІЧНИЙ КОНТРОЛІНГ В АДАПТИВНОМУ УПРАВЛІННІ ВИТРАТАМИ ІНТЕГРОВАНИХ КОРПОРАТИВНИХ ОБ’ЄДНАНЬ ПІДПРИЄМСТВ

Effective cost management is crucial to an enterprise's development. Involving adaptive management principles allows for quick response to changing market conditions and rational allocation of expenses across projects and departments. Enterprise involvement in cooperation processes is a separate direction of adaptive potential accumulation that simultaneously expands the strategic controlling area. The aim of the article is to develop theoretical positions, methods, and practical recommendations for forming a cost management system based on the principles, procedures, and tools of strategic controlling. The research hypothesis is based on the necessity to update the cost management system of the enterprise by expanding cost management methods with strategic control tools and implementing cost-level adjustment adapters aligned with the business capabilities and results of strategic enterprise choice. The proposed adaptation mechanism fully complies with the functions and tasks of strategic and operational controlling. The article suggests that the classic approach to cost control can be enhanced by incorporating adaptation and mutual learning loops into the cost management system. It have been proved that strategic controlling should focus on anticipatory adaptation and formulating reference models for consolidated business capabilities within the integrated corporate entity, while operational controlling should regulate the level of costs using budgeting and plan-fact methods based on the capability map. It has been noted that a cost management system based on the principles of strategic control cannot be created independently of the general system of corporate governance, and the organization of strategic control involves coordinating the parameters of strategic choice of a corporate group with the processes of consolidating business capabilities and defining cost adjustment benchmarks. This approach ensures that the parameters of strategic choice will coincide with the parameters of corporate governance of the integrated group, with the main object of management being the value and needs of consumers in the output of the integrated value chain formation. The structure of enterprises integrated corporate association strategic choice about cost formation chains consolidation has been carried out. The logic of using the classifier of deviations causes in the costs level within the strategic controlling system has been determined. This logic have been mapped on the cost management system adapters work. Keywords: cost management, strategic controlling, adaptive management, corporate integration, business combinations, adaptation scenarios, cost level.

СТРАТЕГІЧНИЙ КОНТРОЛІНГ В АДАПТИВНОМУ УПРАВЛІННІ ВИТРАТАМИ ІНТЕГРОВАНИХ КОРПОРАТИВНИХ ОБ’ЄДНАНЬ ПІДПРИЄМСТВ

Effective cost management is crucial to an enterprise's development. Involving adaptive management principles allows for quick response to changing market conditions and rational allocation of expenses across projects and departments. Enterprise involvement in cooperation processes is a separate direction of adaptive potential accumulation that simultaneously expands the strategic controlling area. The aim of the article is to develop theoretical positions, methods, and practical recommendations for forming a cost management system based on the principles, procedures, and tools of strategic controlling. The research hypothesis is based on the necessity to update the cost management system of the enterprise by expanding cost management methods with strategic control tools and implementing cost-level adjustment adapters aligned with the business capabilities and results of strategic enterprise choice. The proposed adaptation mechanism fully complies with the functions and tasks of strategic and operational controlling. The article suggests that the classic approach to cost control can be enhanced by incorporating adaptation and mutual learning loops into the cost management system. It have been proved that strategic controlling should focus on anticipatory adaptation and formulating reference models for consolidated business capabilities within the integrated corporate entity, while operational controlling should regulate the level of costs using budgeting and plan-fact methods based on the capability map. It has been noted that a cost management system based on the principles of strategic control cannot be created independently of the general system of corporate governance, and the organization of strategic control involves coordinating the parameters of strategic choice of a corporate group with the processes of consolidating business capabilities and defining cost adjustment benchmarks. This approach ensures that the parameters of strategic choice will coincide with the parameters of corporate governance of the integrated group, with the main object of management being the value and needs of consumers in the output of the integrated value chain formation. The structure of enterprises integrated corporate association strategic choice about cost formation chains consolidation has been carried out. The logic of using the classifier of deviations causes in the costs level within the strategic controlling system has been determined. This logic have been mapped on the cost management system adapters work.

Методологія бюджетування у взаємозв’язку з управлінською звітністю

In order to effectively manage the company's resources, it is necessary to draw up financial plans, control the flow of income and expenses, and correlate strategic and managerial decisions with the current economic situation. These tasks can be implemented through budgeting. The article aims to generalize the theoretical and methodological principles of budgeting and management reporting and substantiate recommendations for their improvement based on the analysis of best international practices. It was determined that budgeting is considered as: 1) a management function characterized by general scientific and practical approaches to the goal, purpose, tasks and functional content; 2) an element of the management accounting system concerning management reporting. The factors causing the problem of low budgeting efficiency in Ukrainian enterprises were disclosed. The research draws a parallel between traditional budgeting systems, which have proven themselves in the practice of Ukrainian enterprises, and innovative ones of foreign origin. It was proposed to use instrumental technologies of Lean and frugal production in budgeting. It was recommended to develop the ideology of budgeting based on the philosophy of praxeology. This approach will increase the role of budgeting in making managerial decisions. It was determined that an important element of the budgeting process is the internal management reporting system, which is formed in connection with the design and content of budgets. Innovative budgeting methods are factors in the development of the management reporting system. Management reporting should be improved in terms of form, content and design. The authors consider the design of management reporting as a bridge between the executor and the consumer of the information product, capable of increasing the level of understanding and trust between the management accounting accountant and the decision-making centre, i.e. the manager (owner).

ЗАСТОСУВАННЯ МЕТОДУ БЮДЖЕТУВАННЯ, ОРІЄНТОВАНОГО НА РЕЗУЛЬТАТ, В УПРАВЛІННІ ДІЯЛЬНІСТЮ ВІЙСЬКОВОЇ ЧАСТИНИ

In order to increase the effective use of budget funds allocated to the military unit, the possibility of using a modern result-oriented budgeting method in the management of its activities is being considered. Based on the study of the basic provisions of the method and the specifics of the activity of the military unit, the initial conditions of its application are formed and an activity management scheme corresponding to the content of the method is proposed. In accordance with the scheme, methodological recommendations are offered for its implementation in the following stages: quantitative formation of indicators of the purpose of the military unit's activity and the results of the activities of its units based on a five-point scale using the coefficients of importance of units and types of work in each unit; proving by the method of decomposition the indicator of the purpose of the military unit in the form of tasks to its units, and in the middle of them ‒ according to the types of work. Considered the possibility of forming measures to perform tasks based on the use of optimization methods; formation of the budget of each subdivision under the condition that the budget funds will ensure the performance of the entire list of works by its personnel with the required final assessment. The budget is formed according to the articles of the estimate of the military unit in accordance with the established norms of expenses for the implementation of the activities of the units; organization of work in divisions for the execution of established tasks in accordance with the approved administrative regulations for their implementation, the method of evaluating results and the procedure for spending budget funds; ongoing management of the progress of works in the units by controlling their volume, quality and deadlines, so that the obtained results correspond to the planned ones, and the spending of funds is carried out within the limits of the formed budget. The adoption of motivational measures, including on the use of possible savings of the unit's budget.

Application Analysis of Internal Rate of Return Capital Budgeting Method in Project Investment Decision-Making

Capital budgeting is crucial for a company to make the right investment decision. Among the typically used evaluation methods, the net present value and the internal rate of return are the mostly commonly used and preferred. This paper aims to focus on IRR, providing a comprehensive view of IRR that includes its basic characteristic, advantages and disadvantages when using it as the investment creation, as well as the improvements of its modified version MIRR, there will also be a comparison between the NPV and IRR to illustrate their difference. The study could enable the audience a comprehensive understanding of IRR in project appraisal, and whether to choose IRR or NPV as the investment criterion under different circumstances of the project or base on their own preferences. This research can provide more comprehensive and more realistic economic evaluation decision-making information, making the project economic evaluation more scientific.

Розвиток механізмів бюджетування фінансової діяльності банків в умовах міжнародних економічних відносин

The article examines the budgeting mechanism of banks’ financial activities in the context of international economic relations. The essence of financial planning of banking activity, as well as its role in the bank management system, is substantiated. The method of bank budgeting was considered. Recommendations for the implementation of modern automated information and analytical budgeting systems in the bank, used in foreign practice, are proposed. The proposed procedure for the formation of the bank’s financial plan, which will make it possible to improve the budgeting of the bank’s financial activities, since with the help of budgeting it is possible not only to increase the income and reduce the expenses of the bank, but also to obtain an increase in economic efficiency indicators by improving the quality of the services provided and the degree of satisfaction of customers and employees of the bank. Budgeting is a technology of business management at all levels through budgets, including setting goals, monitoring performance, analyzing and making appropriate adjustments. The processes of financial planning and budgeting are future-oriented decision-making. In the process of budgeting, managers make more reasonable management decisions based on budget information, and a system of responsibility distribution and motivation of bank branch managers and business line managers regarding the results of their work. Budgeting forces planning, producing a comprehensive financial model of the bank, clear for analysis, key parameters and improving coordination. Banks that effectively use budgeting get the opportunity to plan the needs for financial resources, thereby reducing the risks of unforeseen expenses, obtaining cost savings due to the coordination of all types of activities, and determine ways to eliminate problems and obstacles that arise in the process of activity. The process of drawing up the planned budget consists of four stages: 1) determination by the management of the main directions of the bank’s activity; 2) budget centers prepare their budgets; 3) conducting analysis and checking of budget proposals by the management, the result of which is the adjustment of their budgets by the budget centers in accordance with the recommendations of the management; 4) approval of budgets. The first stage includes the following four components: a) determination of guidelines for the bank’s activities in general; b) determination of planned values of macroeconomic indicators (analysis of the external environment); c) determination of guidelines for the principal areas of activity; d) determination of internal regulations, including those regarding non- operational activities.

Capital budgeting methods - The practices of Polish companies listed on the Warsaw Stock Exchange

Purpose of the study: In this study, the authors analyzed of the use of capital budgeting methods (CBM) by Polish companies listed on the Warsaw Stock Exchange (WSE). The study's main objective was to investigate the practice of capital budgeting in companies operating in Poland and listed on the WSE, especially to analyze the dispersion of capital budgeting methods and the factors influencing their selection.
 Methodology: For achieve the research objectives, a survey method was chosen. The authors received 34 correctly completed questionnaires (from 252, the return rate was 13.5. Descriptive statistics and multiple regression analysis with the use of Statistica were used in the study.
 Main Findings: The survey indicated that CBMs are relatively frequently applied in particular; IRR was used (often or always) by 64.7 per cent of companies and NPV by 60.6 per cent of companies. The analysis of company characteristics shows that the use of CBM is influenced by the origin of equity, managerial ownership, employment, and foreign sales (all independent variables are statistically significant).
 Applications of the study: The authors believe that the study's results will be of interest to researchers in other countries and will fill a gap in the management accounting literature. The study's results may also be useful from a practical point of view.
 Novelty/Originality of the study: The survey shows a large sample of companies, what CBMs are used by Polish companies and how often they are used. A broader set of explanatory variables was also used, which allows for a comprehensive description of campaign practices and makes it possible to analyze whether and which companies' practices are consistent with previous studies.

PELATIHAN KONSTRUKSI ANGGARAN YANG EFEKTIF DAN EFISIEN BERBASIS METODE ABC DI PKBM AL KHODIJAH KOTA MALANG

Every organization is required to develop an activity-based financial system that is effective and efficient. Therefore, the financial performance of the organization must be based on the form of a budget that reflects these objectives. A budget that is able to reflect effectiveness and efficiency is the activity based costing (ABC method) budget method. Through this activity-based costing-based budgeting method, organizations can see and monitor the use of budgets and costs in accordance with the activities needed to carry out organizational performance. Activity-based budget construction training can provide assistance and benefits in the implementation, monitoring and evaluation of performance. Thus, all budget requirements and cost items can be tracked and their use can be accounted for. Activitybased budgeting also greatly facilitates rational and reliable decision-making so that in the end it can reflect an organizational management based on good corporate governance

DBP: Distributed Power Budgeting for Many-Core Systems in Dark Silicon

Power budget is an important power constraint provided to guarantee the thermal reliability of an integrated system. In this work, we present DBP, a distributed power budgeting method, for dark silicon many-core systems. In DBP, there are two new techniques proposed to bring accurate and optimized power budgets in a distributed way. First, a distributed active core locating technique is developed to find an active core distribution that leads to a high-power budget. Second, a distributed power budget computing technique is introduced which computes the power budget for each active core accurately. Experiments show DBP outperforms the state-of-the-art power budgeting methods’ thermal safe power (TSP) and greedy dynamic power (GDP) on many-core dark silicon systems by providing a high and accurate power budget with low overhead and good scalability.

Türkiye’de Üç Gün Hastalığı ve Ekonomik Boyutu

Bovine Ephemeral Fever (BEF) is a viral infection that causes a significant decrease in milk and meat production, infertility in cows and bulls, abortion and a significant economic loss due to its rapid spread in the herd. Partial budgeting method was used in the study to measure the economic impact of vaccine use and non-vaccination use. In line with preventive medicine, it has been determined that if animals are vaccinated regularly, there is an average of 8.10 (dolars) vaccination cost per animal, but the average treatment cost of an animal that has not been vaccinated during the epidemic is 20.2 (dolars). It was determined in the economic analysis that in addition to the treatment costs, the loss of milk for a dairy cow increased to approximately 85 (dolars), for a livestock to 148 (dolars) with the loss of condition, but the economic loss increased due to high morbidity. In this context, early diagnosis, detection and monitoring of spreading conditions are as extremely important as vaccination in the fight against BEF infection. It can be said that the economic loss will be minimized with the vaccination and preventive medicine practices to be made by rapid intervention to the disease with the early warning system created by the Ministry of Agriculture and Forestry for this purpose in Turkey.

Recovery dynamics of ecosystem carbon budgets in a young silver birch stand chronosequence after clear-cut – Estonian case study

ABSTRACT Clear-cutting is an extensively used silvicultural method in the Nordic and Baltic countries, which strongly influences the site’s carbon (C) budget. In the current study, C budgets for a young silver birch stand chronosequence (2–8-year-old) were compiled using the C budgeting method. High variability of annual NEP between stands of similar ages occurred, as the C accumulation ability of young stands was site specific. Heterotrophic respiration (Rh), the main C efflux from the ecosystem, varied between (3.7 and 6.3 t C ha−1 yr−1) across all stands. Modelling of the annual NEP dynamics across the chronosequence revealed the C compensation point at a stand age of 6 years. The estimated cumulative C loss for the period when NEP was negative was almost 5 t C ha−1 and the amount of lost C could have been recaptured already in a 10-year-old stand. The C sink capacity of the studied sites depended mostly on the production of herbaceous plants until the production of the new tree generation became the main driver of ecosystem’s net primary production. Hence, site’s C accumulation capacity largely depends on the density and quality of the new forest regeneration.

An assessment of management skills on capital budgeting planning and practices: evidence from the small and medium enterprise sector

Budgets are a compass and guiding light for businesses. Therefore, management and owners of small and medium enterprises (SMEs) must carry out suitable and precise capital budgeting activities and methods to ensure business longevity and progression. There is a high risk of SMEs failing soon after they are found, with one likely cause being poor management skills. Thus, the study aims to assess the management skills of the capital budgeting planning and practices of SMEs. The objective is to ascertain the influence of management skills and owners on current capital budgeting planning and practice. The study adopted the quantitative method by administering questionnaires to 108 owners and managers in the Springfield Industrial Park. The findings of the study indicate that owners and managers were solely responsible for decision-making. Secondly, owners and managers lacked the financial skills, ability to control and lead staff. The study was limited to owners and managers in the SMEs and therefore cannot be inferred to any other area or subject/s. Future studies can be conducted in other regions, of which a comparative study is recommended that owners and managers in SMEs improve their business knowledge, as well as upskilling their financial ability in the capital budgeting process. Thus, the implications of improving owners and manager’s business knowledge will lead to timeous, smarter, and informed decision-making. It is therefore recommended that owners and managers take up short courses to improve computer literacy and financial skills in business processes.

Analysis of annual budgeting method at Barrick Lumwana Mine

Analysis of annual budgeting method at Barrick Lumwana Mine

Structural Equation Modelling Approach to Evaluating Capital Budgeting Factors in Oman

Objective – This study aims to critically evaluate capital budgeting factors in Oman’s manufacturing sector using the structural equation modelling (SEM) approach. Methodology – One hundred and twelve managers participated in the pilot survey conducted in different parts of Muscat, Oman, from September 2020 to January 2021. The managers responded to questions set on a 5-Likert scale bordering on aspects of managerial and organisational attributes, the rationale for selecting specific capital budgeting techniques, the impediments to the use of advanced capital budgeting techniques (ACBTs), and the traction of non-financial, environmental, social, and governmental (ESG) factors. IBM SPSS v.23 and analysis of moment structure (AMOS) v.20, descriptive analysis, correlation, and multiple regressions were used. SEM was applied to determine the strength of the relationship between the latent capital budgeting variables tested in the model. Findings – The results show that the model has an acceptable fit that meets the recommended values. Specifically, the use of advanced capital budgeting methods (ACBMs) relative to financial and non-financial factors in the capital investment decision model is the most influencing path in this SEM model; The rest of the observed relationships are insignificant at a 5% significance level. Novelty – Using relatively more advanced capital budgeting approaches such as real options could significantly impact financial and non-financial factors, thereby opening the prospects for more integrated project appraisal approaches. Cash flow, net present value (NPV), environmental, social, and governance (ESG) considerations, top management role, and clarity of business policy are among the determinants of sustainable capital budgeting. This is perhaps the first study that has applied the SEM approach to generating more insights into capital budgeting factors than previous studies emphasizing the Omani non-oil sector. Type of Paper: Empirical JEL Classification: G11, G31 Keywords: Advanced capital budgeting methods (ACBMs); Confirmatory factor analysis; Exploratory factor analysis; Investment decisions; Oman, Real options; Structural equation modelling. Reference to this paper should be made as follows: Gordon, S.A. (2022). Structural Equation Modelling Approach to Evaluating Capital Budgeting Factors in Oman, J. Fin. Bank. Review, 7(2), 107 – 121. https://doi.org/10.35609/jfbr.2022.7.2(2)

Capital budgeting and Kelly betting

Capital investments are easily interpreted as bets and vice versa. The mathematical theory of betting, often known as ‘Kelly betting’, has implications for all financial decision-making under uncertainty. There have been attempts to exploit Kelly betting methods in financial portfolio optimization, but there has been little analysis of conventional capital budgeting methods against a Kelly framework. A simple comparison between methods reveals that capital budgeting decisions made using conventional finance methods can embed the error that Kelly theorists call ‘overbetting’. The outcome of overbetting is that the firm reduces its expected compound capital growth rate while simultaneously adding to the volatility of its anticipated growth path. That unfortunate pairing is mathematically precluded under Kelly betting rules but is implicitly, albeit unknowingly, sanctioned by accepted capital budgeting practices in finance. JEL Classification: G11, G12, G31

Capital Budgeting Technique Used in Nepalese Manufacturing Small and Medium Sized Enterprises

This paper examines the extent of usage of capital budgeting techniques in small and medium sized enterprises (SMEs) and factors influencing on the choice of capital budgeting techniques adopted by SMEs. A self-administered structured questionnaire survey was conducted with 48 small and medium sized manufacturing enterprises operated in Banke district and information has been gathered through questionnaires and personal interviews. The respondents were chief financial officer and concerned authorities of the firm responsible for long term investment decision. Results of the study reveal that payback period is the dominant capital budgeting technique used in SMEs. The results found that net present value was also the most prevalent capital budgeting method. Net present value as the capital budgeting technique is higher in SMEs who operate in the industry for more than 10 years. Easy to explain to top management, obsolescence due to technological developments and simplicity leading to less time and cost involved revealed the main reasons for using the payback period method. Some of the firms are using discounted cash flow methods of capital budgeting and preferring net present value over internal rate of return.

Методолого-організаційні підходи до забезпечення ефективності управління та використання бюджетних видатків

Introduction. The low pace of socio-economic development of the country indicates signi?cant problems in ensuring the e?cient use of ?nancial resources of the state. This issue is relevant in a state of martial law, ever-increasing social needs, limited ?nancial resources. Problem Statement. Determination of the economic essence of the e?ective use of budget expenditures and the development of an e?ective methodological and organizational approach. Purpose. To generalize the available tools, theoretical knowledge, practical experience to develop certain methodological and organizational approaches to ensure the e?ectiveness of management and use of budget expenditures in modern conditions of socio-economic development of the country. Methods. General scienti?c and special methods are used: analysis, synthesis, grouping, description, modeling, comparison, theoretical generalization and abstract-logical. Results. Attention is focused on the fact that “e?ciency” as an economic category is a complex issue. Scienti?c approaches to the toolkit of criteria application and performance evaluation developed by Ukrainian and foreign scientists have been systematized. The economic essence of the e?ective use of budget expenditures and the methodological and organizational approach proposed by the author is revealed. Along with the program- target method of budgeting, it is an additional tool that will improve the mechanism of management and use of budget expenditures, will enable managers of budget funds to always achieve the goal of budget programs, investment projects, the best indicators of the country’s socio-economic development, and increase the e?ectiveness of budget policy. Conclusions. The ?nal decision on the issues of expanding knowledge about the economic essence of the e?ective use of budget expenditures, introducing the tools of the methodological-organizational approach, along with the program-target method of budgeting, depends on the state authorities. It is advisable to follow the practice of EU member states in order to ensure the transparency of the budget system, improve the budget process, increase the level of citizens’ incomes, social standards, the e?ectiveness of budget policy, and the dynamics of the country’s socio-economic development.

Adaptive Re-use in Hospital Building for Development Efficiency, Case Study: Regular ward use for a new function of the psychiatric ward at RSUP Dr. Kariadi

This paper aims to develop design guidelines in the architectural design process, especially for developing new facilities in the hospital complex, which is optimized by using existing buildings transformed into a new function. A specific approach for the adaptive re-use technique will help find a comprehensive method and efficiency of construction budgeting. This paper will discuss changes and developments for providing space for specific healthcare treatment facilities that are always developing every time as long as the hospital still stands, besides developing services or specific treatment for a specific disease for improving healthcare services. To answer hospital design and development, which can be adapted for every development, we can also develop adaptive re-use technique as one of the alternatives for accommodating fulfilling the need for new functions or adding new treatment facilities in the existing hospital. Existing buildings can be transformed into new functions with minimum editing or retrofitting procedures, so the existing building can extend the duty for accommodating building functions. This technique is also to save the budget for construction of the new building, for at least use the existing structure as a basic start and find out for optimum re-adjustment in other parts of buildings components to fit new function. The case study took at RSUP Dr. Kariadi Hospital, which transformed from an existing regular ward into a psychiatric ward with specific requirements in inpatient facilities. The result of the research can be used as a guide in the design process for developing the new function in hospital buildings that fulfills the efficiency of the construction budget. A specific approach to the design model will help find a comprehensive design method.

Management Accounting Development in the Process of Digital Economy Formation (Case of Georgia)

In the article there is given the assessment of digital economy in Georgia. It is established that effectiveness of managing activities of the organization depends on the information level support. There are discussed the issues of evaluation of the management accounting system functioning, development of cost accounting and budgeting methods, selection of the automated system for information and analytical support. The management accounting data allows not only to analyze the financial results of the organization activities, but also to manage costs, formulate assortment, investment, contract and pricing policies, and, consequently, directly to manage the organization work. The management accounting, which is the special system of knowledge, skills and abilities, can be described as the combination of two main subject areas: as a science and as a practical field of activity. The digital economics and management accounting are interrelated, because along with their development, the management accounting data appear digitally, processing them while using the innovative technologies. The management accounting should be flexible enough to provide any data needed to make the managerial decisions. The management accounting automation is the individual and complex process, as it is necessary to “transfer” the requirements of owners, managers to the accounting system, in terms of software product functionality and parameters, in accordance with the approved regulations. There exist the ready-made software products designed for automation of accounting, however, for medium and large business entities, the best option is to refine the software package for their specific activities, which will allow them to get the maximum efficiency. The article discusses the options for setting up the management accounting system in the organization, substantiates the benefits of implementing “1C: ERP Enterprise Management” as the mechanism for effective management of the company resources. Keywords: Automation, information technology, digital economy, management, Management accounting, control. JEL Codes: D83, L86, L96 The scientific works of the following authors are dedicated to a similar topic: Tchiladze .I; Sokolov I.V.; Vakhrushina M.A.; Ivashkevich V.B.; Kaverinoi O.D; Karpova T.P; Khorngrena CH.T; Foster D.J; Antonia R.N; Parker R.N and others.