The key role of management accounting in decision-making is to provide relevant information to managers in the various fields and management levels in the organization to make informed decisions. Therefore, the management accounting information system realizes the objective of providing useful and qualified information to control operations, utilize optimal resources, and help managers in planning, controlling and making management decisions which contributes to improve the efficiency of business production.
n trị - Kinh nghiệm quốc tế thực trạng ë ViÖt Nam ROLE AND IMPACT FACTOR OF THE ACCOUNTING INFORMATION SYSTEM OF THE CORPORATE MANAGEMENT #Dr Nguyen Dang Huy Hanoi University of Business and Technology Summary: Decision making is one of the basic functions of a manager Managers must constantly face decisions such as: What to produce? How to produce? Should you self-make or purchase parts, components, spare parts? How to price the product? Which distribution channels you use? Should you accept special orders? To succeed in making decisions, managers must rely on management accounting staffs to provide them with relevant information for each decision-making situation In this paper, we want to show the role and the factors that affect management accounting information for different decisions of managers The key role of management accounting in decision-making is to provide relevant information to managers in the various fields and management levels in the organization to make informed decisions Therefore, the management accounting information system realizes the objective of providing useful and qualified information to control operations, utilize optimal resources, and help managers in planning, controlling and making management decisions which contributes to improve the efficiency of business production Key words: KTQT: Accounting Management; HTTT: Information System; DN Enterprise The role of accounting management information for corporate management Provide information for the planning and budgeting process Planning is the building up of goals to be achieved and outlines the steps taken to achieve that goal These plans may be long or short terms The plan that the manager usually makes is usually in the form of estimates The estimation is the alignment of goals together and shows how to mobilize and use available resources to achieve goals The most important is that cash flow estimation is the most important because if there is a shortage of funds because it is not expected to be able to generate profit although the construction plan is very reasonable Therefore, the feasibility and feasibility of planning and estimating functions must be based on sound and well-founded accounting information Provide information for the implementation process With the implementation function, managers must know how to effectively link the elements between organizations, people and resources together so that the plan is most effective In order to perform well this function, the manager also needs a great deal of accounting information, especially international financial information Thanks to the information provided by the Management Accounting, the administrator can make the right decision in the day-to-day management of the operation in line with the common goal 33 n trÞ - Kinh nghiệm quốc tế thực trạng Việt Nam Provide information for the evaluation process After full planning and reasonable, organization implementation of the plan, the administrator requires examination and evaluation of its implementation The most commonly used method is to compare plan or estimate data with performance data to identify discrepancies between achieved results and objectives To this, the administrator should be provided with performance reports that act as a feedback step to help administrator identify issues that need to be addressed properly Provide information for the decision-making process The decision making is not a separate function, but a combination of all three functions of planning, organizing, testing and evaluating, all of which require a decision Much of the information provided by the International Monetary Fund (IMF) serves the decision-making function In order to have the appropriate information to meet the appropriate management needs, international economic analysts will perform professional analysis because such information is not usually available The Management Accounting will select the appropriate information, then synthesize, present them in the most understandable order, and explain the analysis process to the administrators The Management Accounting not only helps managers in decision-making not only by providing appropriate information but also by applying analytical techniques to different situations, from which the manager selects and makes the most appropriate decision Renovate the management of the business Enterprise resources are measured and quantified by economic indicators, expressed in terms of value to provide valuable information for the monitoring and evaluation function The process of assessing business performance is to identify the progress and identify the causes of the difference between achievement and objectives This process also helps businesses to detect changes that will occur If the results of the evaluation are correct, it will be good for the company to adjust the plan, which is the basis for future solutions Also through the process of assessment also helps businesses to discover the potentialities and strengths to be exploited and how to exploit them in the most effective way while detecting the weaknesses that need to be adjusted The information of Management Accounting is a collection of events and events that will become useful information only if and when it changes the decision about the future of the recipient It can be said that information is a means of unifying all activities of the organization It is considered as a means to provide enterprise inputs, which is the means by which organizations communicate with one another in order to achieve the common goal of the business Information is the basis for management decisions, especially as it is essential for the development and dissemination of organizational objectives, business planning, organization and personnel management, and checking the implementation of the plan The information facilitates good governance functions and integrates business activities with the outside business environment It is through the exchange of information that the business, especially the administrator who understands the needs of customers, the ability of suppliers and problems arising in the organization Mainly through information, any organization 34 n trị - Kinh nghiệm quốc tế thực trạng ViÖt Nam becomes an open system that interacts with its environment Therefore, the information plays an important role in corporate management Factors affecting Accounting Management Information Systemin the Enterprise The goals and strategies of the Enterprise and the demands of the administrator Developing a plan for operating costs of an enterprise means identifying goals and developing strategies to achieve them This is the key factor that managers need to consider in order to organize the Cost Information of Management Accounting System However, at present, the demand for information on economic cost from the business administrator is not clear The administrators making decisions are all based on experience and management habits that make it difficult to control costs and business outcomes This is a concrete evidence indicating the cause leading to the organization of Information System of Cost Management Accounting in the Enterprise have many shortcomings and limitations Organizational characteristics of production The production organization clearly shows the organizational form of the production process and the nature of the division of labor between the parts of production and production use, the characteristics of the combination of labor with the labor material and the labor objective in the production process In addition, the production organization is to show how the production divisions are organized: They can be organized in the form of technology, each of which implements a certain technology or organizes as the combination of both above methods Technical and staff qualifications to perform accounting work The amount of information that Management Accounting has to deal with and translate into useful information is significantly huge The process of information processing requires a combination of complex technical methods Therefore, facilities with computer systems and information processing software are very necessary in the process of organizing the accounting information system In addition, the level of knowledge and working skills of international staff also has a considerable impact on the quality of the Cost Management Accounting Information System However, most of Vietnam Enterprises are small and medium enterprises, the resources on facilities, personnel are also very limited This is also the cause leading to the system of information technology in the business environment be difficult to organize and develop Some of the shortcomings in the organization of Corporate Management Accounting Information System Current situation in organization of Corporate Management Accounting Information System At present, in general, Management Accounting works have been paid more attention in Enterprises, however, some Enterprises have not paid much attention to Management Accounting works and use of Management Accounting Information in the process of Corporate Management Among Enterprises that have done well in Management Accounting works, most Enterprises have implemented the organization of Management Accounting in 35 n trị - Kinh nghiệm quốc tế thực trạng ViÖt Nam one of two models: combination of the same accounting system with financial accounting or separation of financial accounting and Management Accounting However, the accounting information provided only focuses on financial accounting information, does not relate to Management Accounting information in general and Cost Management Accounting in particular, not meet the requirements to provide information to implement Management Accounting procedures integrated with the function of managers in Enterprises Information on Cost classification Classification of costs in terms of cost-of-living behavior has also been implemented in a small number of Enterprises Most companies, however, undertake to identify and classify costs by function and cost factor For example, in the Enterprises producing alcoholic beverages and beverages, the cost of producing cement products includes the cost of direct materials; direct labor costs include salaries, wage deductions, and general production costs; costs outside of production include costs of sales and Enterprises management costs Information on the construction of norms, cost estimation At present, mainly in the manufacturing companies are interested in and implement the construction of direct cost norms of raw materials, some companies set the cost of direct labor, a few of companies not set up general production cost norms, cost norms of sales and Enterprises management costs The construction of norms are usually constructed from the beginning of the year based on the economic and technical characteristics, characteristics of production and business of the company and the situation of implementing the norms of the previous year The cost estimation work is also focused on and implemented on a yearly basis New estimations help managers in planning work not have much effect in control activities For collection, processing, and providing information on the cost - About accounts and detailed accounting books: In the Enterprises, the collection of information for administrators performing administrative functions is based on the system of documents, accounts and general accounting books, detailed costs with indicators established for the requirements of financial accounting - About the information in the Management Accounting Statement: These statements are mainly of the detailed nature of the financial statements including: production cost report, detailed report of selling expense, detailed report of Enterprise management fees, full cost report for each product that are made according to detailed item cost, a few companies set up by variable fees, cost estimates For comparative analysis of cost information All analyzes of performance information were compared with estimates, with an emphasis on the variation in production costs However, when analyzing fluctuations in production costs, the company analyzes fluctuations in factors of production costs, selling expenses and enterprise management expenses for each manufactured and consumed products that are presented in Management Accounting Statements, but not implemented the cost analysis according to cost variables and cost estimates 36 n trÞ - Kinh nghiệm quốc tế thực trạng Việt Nam Some of the shortcomings in the organization of Corporate Management Accounting Information System Firstly, the accounting information provided is only focused on financial accounting information, not related to the Management Accounting information in general and the Cost Management Accounting in particular, has not met the requirements to provide information to comply with the Management Accounting procedures associated with the function of the managers in the Enterprises Secondly, in the process of classifying the costs, it is not derived from the characteristics and nature of the costs, such as taxes, fees, fixed asset repair costs, salary costs, etc that is not effective in management and control costs Thirdly, the estimation and cost norms have not been paid enough attention, so there is no initiative in the production plan, most depend on partners Analysis of cost - volume profit has not been done by enterprises, so cost information has not been effective in selecting the optimal production options The performance evaluation of components in enterprises has not been conducted Management Accounting work has not paid much attention, the system and books are very sketchy mainly using the detailed books of financial accounting, etc Some exchanges to improve the effectiveness of Enterprise Management Accounting Information System Establish management accounting system Currently, because Enterprises have not applied systematically in the system, the choice of accounting model is also asking a lot of questions The combination of mixed Management Accounting and financial accounting models will be able to use the financial accounting input data (detailed accounting accounts, consolidated accounts, detailed lists, etc.) as well as add the required data (internal reporting, production plan, etc.) In addition, the financial accounting and Management Accounting have a close relationship with each other in terms of information sources, data sources, etc., so the application of mixed financial accounting and Management Accounting model will take advantage of the relationship of gathering and providing information Identify and classify costs It is necessary to identify and classify costs by activity level including variable costs, cost estimates and compound costs At the same time, the information of the Management Accounting will be presented more clearly on the reports: production reports, reports on interest on variable costs, determining the price type, cost-output relationship model - profit (CVP), etc.; Thereby, the administrator will recognize the information more accurately Since then, Enterprises have the best decisions on selling prices, sales, breakeven output, safe area, etc For collection, processing, and providing information on the cost Cost information must ensure that the requirements for supplying information about cost objects include the management office parts of the company, the sales department, the production department; Information about the variable cost and cost estimates of each element of the cost factor On the basis of the accounts, the corresponding accounting details book will be made 37 n trÞ - Kinh nghiệm quốc tế thực trạng Việt Nam Develop Cost Management Accounting Reports System The system of Cost Management Accounting Reports may include: - Cost Estimates Reporting System such as expense report in production workshop; cost estimate report sales department; costing business unit cost report; cost management report of enterprise management; cost estimate report for the whole enterprise - Analytical and evaluation report system: There are the following reports: Report on the implementation of costs at the workshop; Report on the implementation of the cost of sales department; Report on the cost of business segment; Report on the performance of expenses of the enterprise management unit; Report on the implementation of enterprise-wide cost Conclusion The Management Accounting Information System plays an important role in economic management, especially in the context of international economic integration and in the 4.0 industry Therefore, the organization of the Management Accounting Information System for Enterprises in the quality of business for the management and the decision-making process is an objective inevitably With the current development of science, technology and information, the provision of Management Accounting Information must be done quickly, promptly, accurately and reliably in order to serve the management and decision making helps the company achieve its goals. -References Dr Nguyen Dang Huy, Administrative Accountant (2018), National Economics Publishing House 2.Hilton, RH, 1991 Managerial Accounting McCraw-Hill, Inc New York, USA Horngren CT, Bhimani A., Datar SM, Foster G., 1999 Management and Cost Accounting Prentice-Hall Europe Horngren CT, Datar SM, Foster G., 1997 Cost Accounting: A Managerial Emphasis (9thedition) Prentice Hall Europe Prentice-Hall, Inc 38 ... important role in corporate management Factors affecting Accounting Management Information Systemin the Enterprise The goals and strategies of the Enterprise and the demands of the administrator... integration and in the 4.0 industry Therefore, the organization of the Management Accounting Information System for Enterprises in the quality of business for the management and the decision-making... of the production process and the nature of the division of labor between the parts of production and production use, the characteristics of the combination of labor with the labor material and