THE ROLE OF FINANCIAL REPORTS IN THE MANAGEMENT OF THE ENTERPRISE
Main Article Content
Abstract
Introduction. Modern financial statements are a thorough description of the company, which characterizes not only its financial and property status, but also the risks and prospects, which allows you to form a comprehensive view of the market. Analyzing and summarizing the information obtained, managers at various levels identify future options for the development of certain production situations, forecast trends and dynamics, form appropriate tactical or strategic steps for business development. Thus, the collected, summarized and processed information is the basis of the management process. That is, the work of the accounting system is aimed at implementing the functions of the management system. The article is devoted to the study of the essence and establishment of the role of financial reporting in the process of enterprise management.
Purpose. The purpose of this article is to establish the necessary content and features of financial statements, which would allow to fully meet the needs of management staff, while remaining economical, clear and sufficient in content.
Results. The author explores the main approaches to the definition of financial statements, which as a result allowed to define it as a set of indicators that are generalized accounting data in a form that fully meets the information needs of its users in the process of business management. In the process of studying the composition of financial statements, its types are identified, and as a result - their role in the management of the enterprise.
Originality. The author presents his own vision of the essence of quality accounting information and its main characteristics that can serve as semantic guidelines in the preparation of descriptive, non-financial textual parts of financial statements. This approach allows you to generate financial statements from the standpoint of presenting your own business from the best side, but in compliance with the principles and requirements of regulatory support. The article substantiates that the financial statements from the standpoint of management is a set of indicators that are generalized accounting data in a form that fully meets the information needs of its users in the process of managing business activities. The authors proved that the quality of accounting information covers its analytical content, timeliness and materiality, as well as compliance with the characteristics defined at the level of regulation and internal requests of management. Accordingly, the system of financial reporting, as a management tool covers the organization of work not only of the accounting department, but also the organization as a whole, which allows to meet the needs of management entities. The quality of accounting information is a fundamental prerequisite for the construction and operation of an effective management system, because accounting data is the basis for assessing the current financial and property condition of the enterprise, the dynamics and trends of certain parametric indicators.
Conclusion. A rational and efficient system of accounting and internal audit are integral parts of the modern management system, and the information that emerged in this system - its foundation. Having provided sufficient prerequisites for the quality of accounting information, the management system forms a number of characteristics and requirements for financial reporting, which it must meet for the purposes of effective management.
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