Managerial accounting for the small entrepreneurship

Keywords: market relations, entrepreneurship, managerial accounting.

Under the leadership of Honorable President of Turkmenistan, our country, while achieving new heights of market economy development, defines further strategic tasks including the aim of strengthening of the national economy positions at the level of the developed states. Purposeful introduction, duly application and permanent purposeful perfection of the market relations follow the aim of increase of the results of functioning of the enterprises, institutions. The market relations will promote establishment of new positive possibilities of progressive development, intensify participation of small enterprises in the foreign economic relations, in the activities of the interstate committees on trade, economic and technological cooperation, including the establishment of relations with the other countries concerning the matters of small entrepreneurship. It is envisaged to accommodate the facilities for full, effective use of the international technical assistance in the small entrepreneurship development.

The center of assistance to implementation of foreign programs of support to small business will be established to promote smooth interaction of the entrepreneurs with the government authorities, associations of entrepreneurs and separate enterprises of different levels, as well as help in arrangement of all-round access to the database of foreign projects for support to entrepreneurs. In this context, the actuality of the financial reporting system perfection increases, as this is one of the effective tools of provision for economic profitability and strengthening of competitiveness of economic entities in the conditions of market economy. Provision for authenticity and competence is the main principle in arranging and keeping the managerial accounting.

The structure of managerial accounting is the aggregation of initial data within the accounting structure, the supply and control of costs for every object. Owing to the information technologies, positive opportunities emerge for provision and introduction of managerial accounting at the enterprises. In practice, it assumes computerization of managerial accounting and timely planning of activity of the internal subdivisions, efficient introduction and application of the advanced computers, software in the subdivisions of accounting and reporting of various enterprises. Managerial accounting and reporting at the modern enterprises allow arranging efficient work provided the full, duly job is arranged at all levels. These are: — Motivation of the managers of enterprises and organizations; — Availability of adequately qualified specialists; — Methodical adaptation in various branches; — Information supply; — System of bookkeeping and movement of goods; — Financial structure, managerial methods and accounting at enterprises and organizations. In practice, the results of automation of bookkeeping and managerial accounting can be seen through the experience of small enterprises. If the system of management in the organizational-financial divisions of some enterprises does not correspond to the requirements, it is necessary to insert some temporary changes in the financial 38 system and human resources. Thus, the managerial accounting introduction is necessary. Some shortcomings in the organizational-financial structure can slow efficient introduction of managerial accounting at small enterprises. Therefore, it is necessary: — Organize at CEO level of the enterprise the adequate process of taking and generalizing the managerial decisions; — Increase at management level the responsibility of the managerial staff for taking and fulfilling the decisions; — Grounding of differentiated accommodation of the staff of Division of Planning and Control; — Personnel replacements in the Divisions. At present, this is the question of high priority to introduce managerial accounting effectively at small enterprises, arrange an integral system of recording, motivate the specialists and also work up and apply basic indicators for comparison of the activities results. The bookkeeping and small enterprises are the object of managerial accounting. Nowadays, by reason of characteristic peculiarities of SME development, the necessity arises to perform deep, science-based studies especially in the spheres of production and services. The indicators showing the shares of small and medium entrepreneurs in the national economy structure should include: — Overall number of small and medium entrepreneurs in the market economy conditions; — Volumes of investments in establishment of small and medium enterprises, gross domestic product, output, fulfillment of work and rendering of services; — Attraction of funds of the economic entities and the region budget to the authorized capital of the small and medium business; — Influence of small and medium enterprises on working indicators of the employable population and on decline of unemployment; — Satisfaction of consumer demand for high quality, domestically produced goods (work, services); — Accumulation of labor potential of the population, promotion of private entrepreneurship initiative of the population, their economic activeness, with application of positive experience of other enterprises.

To be successful the owners of the small enterprises need investments and savings on the basis of personal motivation. Information of the small enterprises compared to the large enterprises helps increase the level of sales at local markets, increase the number of workers and interest of the unemployed population and as a consequence interest to advanced training. The foreign experience shows that the small enterprises prevail against the background of large enterprises by number, by assortment and quality of produced goods (performed work, rendered services). Applying of managerial accounting at small business enterprises allows see the financial position of the company, assess the assets, resources and take proper decisions. When introducing the managerial accounting at the small enterprises it is necessary to study the characteristic peculiarities of an enterprise and possess the necessary appropriate information. Financial resources, commodities resources and workforce are the main criteria of managerial accounting. Managerial accounting is the obligatory internal structure of an enterprise, and namely taking of strategic and tactical decisions in planning, operational control and management of all kinds of activities.

When developing the managerial accounting system (at any enterprises) the following main requirements should be taken into consideration for the purposes of being successful:

– Support in taking strategic decisions in the managerial accounting;

– Assistance in defining the kinds of solutions in the managerial accounting;

– Choice of relevant and effective financial indicators of an enterprise, when preparing the system of management;

– Provision of most necessary information to managers in case of managerial accounting;

– Splitting of all costs in managerial accounting to discretionary costs and the costs for technological processes;

– Periodical examination of the management. The above requirements, circumstances and conditions should promote successful fulfillment of managerial accounting at the enterprises of the small business.

References:

1. Gurbanguly Berdimuhamedov. «State Regulation of Socioeconomic Development of Turkmenistan» — study guide for higher education institutions. Parts I,II — Ashgabat, Turkmen State Publishing Service, 2010
2. Bulgakova S. V. «Managerial Accounting». — Voronezh city, Russia — 2015