Application of budgeting as a key element of management accounting in the project management system

Keywords: process activity, project activity, project, financial structure, organizational structure

Abstract

Importance. The limited resources inherent not only in the Russian economy, but also in the global economic system, lead to the need to form new forms of economy and methods of managing them.
Project management emerged as a response to the problem of limited resources, since its essence is to direct material, financial and labor resources to clearly defined goals within a specified time
frame. Thus, the application of the project approach in the management of an economic entity allows you to create fundamentally new types of activities, develop and implement innovative products, and implement progressive methods in production activities. However, the functioning of this management system is impossible without information support of the necessary level of detail for making effective management decisions. The development and implementation of the management accounting system provides an opportunity to create a relevant information base for the implementation of projects in accordance with the established time, resource and quality constraints. It should be noted that management accounting tools that are effective in process activities are not always able to demonstrate similar results when implementing the project approach. In this regard, the research aimed at adapting budgeting to project-oriented activities is an actual and practically significant task that can increase the competitiveness of domestic economic entities.
Objectives. Justification of the relevance of budgeting as a key element of management accounting in project-oriented activities, highlighting the key features of building organizational and financial 
structures in process and project activities.
Methods. In the process of studying budgeting as the main element of the management accounting system in project-oriented organizations, methods of logical, statistical analysis, as well as General
scientific methods of cognition were used.
Results. The article presents the organizational and financial structure of the economic subject from the point of view of process and project activities, and suggests the cash budget of the project
and current (process) production, which is necessary for the formation of an information base that allows for operational and effective management of the business entity.
Conclusions and Relevance. The main task of all organizations, regardless of the volume, type of activity and form of ownership, aimed at maximizing profits, is the optimal consumption of resources, which is subject to management at the planning stage, which requires the development of an objective and flexible budgeting system that meets modern business conditions. The main purpose of management accounting is to generate information about costs in the context of the financial and organizational structure of an economic entity.

Metrics

Metrics Loading ...

Author Biographies

Alexey N. Bobryshev, Stavropol State Agrarian University

Dr. Sci. (Econ.), Prof., Department of Management Accounting

Nelly P. Agafonova, Stavropol State Agrarian University

Postgraduate Student, Department of Management Accounting

References

Anushenkov, K. A. (2016) Project management and implementation at the enterprise. Business and strategy, 3(4), 9-12. (In Russ)

Bulgakova, S. V. (2015) Directions of development of managerial accounting in the modern economy of Russia. Proceedings of April scientifi c readings named after Professor L. T. Gilyarovskaya. Voronezh, pp. 158-161. (In Russ.)

Bulgakova, S. V. (2016) Projects as objects of management accounting. Proceedings of April scientific readings named after Professor L.T. Gilyarovskaya. Voronezh, pp. 163-166. (In Russ.)

Bahrushina, M. A. & Bahrushina, A. A. (2019) Institutional regulation of management accounting: domestic and foreign practice. Management accounting, 2, 3-10. (In Russ)

Bahrushina, M. A. (2014) Problems and prospects of development of Russian management accounting. International accounting, 33, 12-23. (In Russ)

Volkova, A. V. (2015) Project Management against the background of innovation development. Region: systems, Economics, management, 1(28), 97-100. (In Russ)

Endovitsky, D. A. & Pankratova, M. V. (2018) Analysis of the impact of the idea of corporate sustainability on the modern practice of internal control of corporations. Modern economy: problems and solutions, 3 (99), 49-64. (In Russ)

Ivashkevich, V. B. (2017) Managerial accounting as a profession. International accounting, 20, 3 (417), 124-134. (In Russ)

Ivashkevich, V. B. (2019) Digital economy and accounting. Vestnik IPB [Bulletin of professional accountants], 2, 9-12. (In Russ)

Kaspina, R. G & Khapugina, L. S. (2013) Application of a process-oriented approach in management accounting when forming a business model of an organization. International accounting, 39 (285), 2-8. (In Russ)

Kasenova, N. U h. (2014) Project management development in Russia: historical aspect and modern trends. Economics and entrepreneurship, 1-2, 74-77. (In Russ)

Kolobkova I. E. & Yanchenko A. Yu. (2016) Types and characteristics of organizational structures that arise in the design method of management. Azimut of scientifi c research: Economics and management, 2(15), 122-125. (In Russ)

Komov, A. V. (2018) Concept and principles of project management. Science and education today, 2, 87-88. (In Russ)

Kostyukova, E. I. & Bashkatova, T. A. (2015) Adaptation of existing methods and systems of managerial cost accounting to determine the reasonable cost-cost of products of starch production. Accounting in agriculture, 4, 44-53. (In Russ)

Kostyukova, E. I. (2019) Budgeting of cash fl ows in the management accounting system. Bulletin Of the Institute of friendship of the peoples of the Caucasus Theory of Economics and management of national economy, 1 (49), 21-27. (In Russ)

Sidorova, M. I., & Gordeeva, E. I. (2014) Managerial accounting and management: issues of cross-functional interaction. International accounting, 35, 2-15. (In Russ)

Kutsenko, E. I. (2017) Process approach to project management of enterprises. Economics and entrepreneurship, 10-1, 871-875. (In Russ)

Sytnik, O. E. & Frolov, A. V. (2019) Accounting fi eld of the economic subject-vision of the future. Bulletin of the Chechen state University, 36, 4. 29-35. (In Russ)

Khruzhiy, L. I. & Katkov, Yu. N. (2014) Cognitive management accounting in the system of sustainable transformation of the organization. Modern scientific Bulletin, 2(3), 87-92. (In Russ)

Khoruzhii, L. I., Pavlychev, A. A. & Khoruzhii, V. I. (2018) Methodological approaches to the separation of production and management accounting. Accounting in agriculture, 1, 45-59. (In Russ)

Published
2020-06-30
How to Cite
Bobryshev, A. N., & Agafonova, N. P. (2020). Application of budgeting as a key element of management accounting in the project management system. Proceedings of Voronezh State University. Series: Economics and Management, (2), 3-12. https://doi.org/10.17308/econ.2020.2/2897
Section
Accounting, statistics