There are three methods used in preparing management reports in an organization:
Parallel accounting method
According to it, any operation must be reflected in different accounting systems, for example, accounting and management. This method is characterized by detailed specification and high accuracy. At the same time, it is the most expensive to use.
Transformation method
One type of accounting is used cyprus email list to generate financial statements in accordance with different methodologies. At the end of the reporting period, all final statements are converted to another system.
Methods of preparing management reports
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This method is quite simple, but at the same time has some limitations. For example, reports can only be generated in periods, and the detailing is not as accurate as other methods.
Sequential method or translation method
It is somewhat similar to the parallel accounting method, but differs from it in that the process takes place in a common database, in which one operation is characterized by the features of different accounting systems.
For example, when reflecting an operation, specialists first consistently fill in the details required for RAS, after which the analytics for management accounting are filled in. This method is characterized by an optimal ratio of costs and results of accounting.
In order to implement this accounting method at an enterprise, it will be necessary not only to describe the model of each type of accounting, but also their interrelations, which will lead to the emergence of a general form of accounting using various methods.