Within the framework of modern business, a high-quality and timely management accounting and reporting system is becoming a key factor in the successful functioning of the company at all levels of management. This system ensures the fulfillment of a number of important tasks aimed at achieving the strategic goals of the organization, among which are: planning, cost analysis and control, as well as making informed management decisions.

One of the central tasks for any manager is to maximize the efficient use of the company’s available resources. To achieve this goal, information about the availability and status of these resources is extremely important. In the modern context, management accounting is an integrated system that covers the following aspects:

– financial flow planning: includes forecasting both income and expenses, which helps ensure financial stability and avoid deficits;

– attracting and distributing financial resources: this is a key task for optimal cash flow management, which requires a thorough analysis of funding sources;

– accounting for actual costs: it is necessary to keep detailed records of all costs, which allows them to be compared with planned indicators and promptly respond to deviations;

– reporting: the creation of both internal and external financial reporting is an important element in management, which contributes to the transparency of processes for all stakeholders;

– control and monitoring: it includes the organization of control measures to monitor all of the above processes, which allows not only to identify problems, but also to take timely measures to eliminate them [1].

It should be noted that an effective management accounting system contributes to a more sustainable growth of the company, as it allows management to quickly improve business processes, reduce costs and increase the productivity of the team. In conditions of high competition in the market, the availability of such a system becomes not just desirable, but a necessary condition for achieving success and sustainable development of any business.

The main task of the management accounting department is to provide managers and managers with valuable information necessary for informed decision-making and successful business management. Each decision made can have a significant impact on the financial and operational results of the company, which underlines the importance of accurate and timely information for management. In this context, effective decisions made by management become the basis for the sustainable functioning and growth of the enterprise.

In other words, the decision-making process can be considered as the formation of a final judgment, which involves choosing the optimal course of action among the many available alternatives. This covers all aspects of an organization’s business, whether it’s financial planning, resource management, marketing, or new product development. The use of analytical tools and management accounting methods allows not only to assess the current situation, but also to predict the consequences, thereby ensuring a strategic vision and long-term stability of the business.

The following key areas are important aspects of enterprise management:

1) Decisions regarding the cost of production:

– determining the optimal price for the products offered;

– assessment of the expediency of continuing or stopping the production of certain products;

– the choice between manufacturing your own components or purchasing them from third-party suppliers;

– consideration of the need to purchase modern equipment to increase efficiency;

– analysis of the possibility and expediency of changing the technological process and organizational structure of production.

2) Decisions related to personnel management:

– making decisions on the recruitment of new employees or on the dismissal of existing personnel;

– organization of training and advanced training of employees to adapt to new conditions and technologies;

– creating an effective motivation system that will help strengthen employees’ commitment to the company’s goals;

– adjustment of the remuneration structure, which may include both an increase and a reduction in the fixed or piecework part of remuneration.

3) Analysis of material resource needs:

– determining the need to increase or decrease inventory and reserves to optimize operational processes;

– making decisions on the size of purchased shipments of material resources in order to increase the efficiency of their use;

– assessment of the capacity of the enterprise to ensure the sufficiency of resources necessary for smooth operation and execution of production plans [10].

These areas require a comprehensive approach and careful analysis to achieve successful business management results. Adaptability and the ability to react quickly to changes within the market and within the company itself become a key element.

Depending on the level of globalization, the decisions taken may be forward-looking, covering a period of 10 to 20 years, taking into account the typical duration of 10-12 years. These decisions include the development of general principles that guide the future development of the organization, which can be described as a strategic development concept. They form the strategic direction of the company, determine the program and stages of development, as well as key activities that will contribute to achieving the goals set [8].

It is important to note that management decisions can be divided into two categories: long-term and operational. The latter, unlike strategic decisions, are made in real time and are aimed at optimizing current activities in response to new challenges and changing conditions. These decisions often require quick reactions and flexibility, as they involve adaptation to current economic and market conditions.

Based on this, management accounting is a key tool in the decision-making process. It is designed to simplify this process by providing the necessary information, both quantitative and qualitative, in a form convenient for analysis. However, it is worth emphasizing that although managerial accounting greatly facilitates the decision-making process, it cannot completely replace the expert opinion and experience of management in a particular situation.

In conditions when economic research and practical situations find new ways of development, considerable attention is paid to the analysis and evaluation of efficiency, which plays a key role in measuring the effectiveness of organizations. The rich experience gained to date allows for a deeper understanding of various aspects of this issue. Many Russian scientists and experts are actively engaged in the development and improvement of methodological approaches to the analysis and forecasting of the effectiveness of enterprises [3].

The methods used for analysis may vary, but their general purpose is to provide the most complete information about the state of the business. They can be either complex or specific, depending on the goals and objectives set. It is important to note that most of them focus on large and medium-sized enterprises that have sufficient data to perform in-depth calculations and analysis of various indicators. This fact determines the relevance of the topic under consideration, which is justified not only by changes in the market environment, but also by the need to optimize business processes, increase competitiveness, and improve the overall economic condition of industries.

Currently, there are several key systems designed to evaluate the effectiveness of organizations. They can be roughly classified into two main groups. The first one includes techniques that focus on analyzing individual performance indicators, such as return on capital, working capital turnover, and other similar metrics. These indicators allow us to consider in detail various aspects of the financial condition and the state of the company’s resources. The second group covers integral indicators (for example, resource commitment) that combine several aspects of efficiency. These systems provide a more holistic view of the organization’s performance, taking into account the interaction of various elements.

Each of them can be successfully used in domestic companies, which helps to increase the transparency of their financial processes and improve overall resource management. It is important to note that the choice of an appropriate assessment system depends on the specifics of the business and the strategic goals of the organization.

In the modern world, there is a significant variety of methods aimed at diagnosing and evaluating the effectiveness of enterprises. Given the growing interest from both business and the public in this issue, as well as the need to obtain reliable results, it is important to pay attention to the main approaches to developing analysis methods, as well as consider their unique features and potential disadvantages.

To date, stable methods have been developed in the field of analyzing the effectiveness of organizations, allowing experts to systematically assess the financial condition and results of companies. In this context, there are several key approaches to the analysis of financial statements that help to formulate informed conclusions and recommendations based on the collected data. They can be conditionally divided into four main groups: transformational, qualitative, coefficient and integral [2].

Transformational analysis techniques are focused on optimizing data representation. Their main goals are to create a more convenient and visual form for perception.:

– article aggregation – involves changing the composition of the elements presented in the balance sheet, allowing you to simplify information and make it more structured.

– the organization’s balance sheet can be supplemented with new indicators that reflect both changes in the structure of assets and liabilities, as well as their dynamics, which allows analysts to more deeply assess the financial stability and development of the company.

– transformation in accordance with international standards – companies can adapt their reports to IFRS, which contributes to a more accurate comparison of financial results with their foreign counterparts and improves transparency for investors [11].

Despite this, it is important to note that these techniques do not always provide a clear analytical assessment. Rather, they provide a general idea of the effectiveness of activities, without contributing to the formation of specific recommendations and conclusions.

Qualitative methods for analyzing the effectiveness of organizations can be divided into several categories. These include vertical and horizontal analysis of economic resources (which allows for a more detailed examination of financial indicators over time and in comparison, with other reporting periods), as well as a category of formalized schemes, which, although rarely used, allows for standardized approaches to evaluating effectiveness based on predefined criteria.

Vertical analysis is an important tool for assessing the financial situation of an enterprise, as it allows you to determine the share of each individual economic resource in the total, consolidated indicator, which is taken as 100%. This technique helps to examine in detail the structure of assets and liabilities, but it does not always allow us to draw unambiguous conclusions about the current state of resources.

It should be borne in mind that their structure is significantly influenced by the specifics of the company’s activities. Even within the same industry, differences in technology and processes can lead to significantly different asset and liability structures. Therefore, comparing current data with a single standard may not be entirely correct and is not always justified. For example, companies with high capital intensity may have a larger share of long-term assets, while enterprises operating in rapidly changing industries may pay more attention to current assets. This underlines the importance of taking into account the specifics of the business in a comprehensive vertical analysis, which allows you to get a completer and more accurate picture of the financial condition of the company and its development prospects.

Horizontal analysis is an important tool that allows you to identify both absolute and relative changes in various performance indicators in comparison with previous periods. However, this method has its limitations, which should be kept in mind:

– the changes identified as a result of this analysis are related to actions that occurred in the past, and there is no reason to believe that similar trends will continue in the future, especially in a dynamically changing external environment;

– without additional data, the results of the analysis may be difficult to interpret unambiguously, due to the lack of context that helps to understand which factors formed the basis of the changes;

– The results of the analysis often depend on many different factors, both internal and external, which makes it difficult to predict future performance, as economic or political circumstances may change, affecting work efficiency;

– it is difficult to assess the company’s efficiency improvement without knowing the real state of affairs, and conclusions will be less reliable if such data is not available [5].

The application of qualitative methods to a company’s public financial statements often does not lead to valuable conclusions or recommendations that could be useful in practice, as they provide only general information, preventing a deeper understanding of the reasons for changes in indicators and the formation of effective strategies to improve the situation.

Coefficient analysis is one of the most common tools for evaluating the performance of an enterprise, used by analysts in various practical situations. However, it should be noted that its compliance with user requirements can sometimes raise certain doubts. The effectiveness of coefficient analysis depends on a number of factors that largely determine its usefulness:

– the variety of sets of coefficients that can be used for analysis makes it difficult to select the most relevant indicators.

– the difficulties that arise in the reasonable normalization of indicators may affect the reliability and adequacy of the conclusions obtained during the analysis.

– the lack of clear mechanisms for interpreting the obtained coefficient values complicates the process of forming final conclusions and recommendations for management [7].

The desire to analyze efficiency in more detail and thoroughly, as a key characteristic of the activities of organizations, led to the development and implementation of a significant number of coefficients. However, it turned out that many of them are interconnected with each other, which necessitates the simplification and systematization of these indicators. Thus, despite the potential of coefficient analysis, its use requires a careful approach and a rational choice of criteria to ensure the reliability and usefulness of conclusions for further management and decision-making.

Determining coefficients in analysis is an important method, but the success of its application is determined not only by the ability to perform mathematical calculations. Much more important is the understanding of the data used in this process, as well as the ability to analytically interpret the results of calculations. If these aspects are ignored, the application of coefficients is reduced to simple arithmetic and loses its economic value. Nevertheless, the shortcomings inherent in modern methods of coefficient analysis are not critical. There is an objective need for further development and improvement of this analytical tool.

Integrated methods for assessing the performance of enterprises involve the use of synthetic approaches to combine various indicators into complex models. Such approaches include, for example, regression models that help assess the likelihood of a company going bankrupt, as well as bank ratings and ranking systems that take into account the specifics of different industries. Such consolidated rating models allow for a more accurate and multifaceted approach to assessing the financial condition of organizations, which in turn contributes to more informed management decisions. It is important to note that the use of integrated techniques allows not only to get a more complete picture, but also to identify hidden trends and relationships, which is key for strategic planning and risk management.

Enterprise performance assessment methods include various analytical approaches, and one of the most common is the multiple discriminant analysis (MDA) model. This method is based on the discriminant function (Z), which takes into account a number of economic parameters (regression coefficients). They allow you to analyze such indicators as return on funds and other important financial metrics that directly affect the company’s activities. For example, the resulting Z-score can show how effectively an organization is functioning in comparison with industry averages. If it is close to the industry average, this can be an alarming signal: in the event of a further deterioration in financial performance, the company risks facing the threat of bankruptcy [4]. For the successful application of this model, it is necessary to form a broad and representative sample of companies covering various industries and business scales.

Despite the obvious advantages of regression models for bankruptcy forecasting, analysts in our country face a number of objective limitations when implementing them in practice. In particular, there are currently no fully developed models based on Russian financial statements, which creates additional difficulties. The specifics of domestic business and the peculiarities of accounting lead to the fact that mechanical copying of foreign methods does not always allow to obtain correct and reliable results.

To improve the situation, it is necessary not only to create specialized models adapted to the realities of our market, but also to collect more extensive data, which will allow for detailed analysis and forecasting of financial risks. At the same time, it is important to establish mechanisms for accumulating up-to-date statistics and will improve the accuracy of forecasts.

Normative models used to evaluate the performance of enterprises provide an opportunity to compare actual indicators with expected values that were determined at the planning stage, for example, in the budgets of organizations, or in accordance with the standards established by law. This approach is often based on clearly delineated factor models, which makes it easier to analyze. The advantage of such a system is the ease of interpretation of the results, as there are specific «normative» values for comparison. However, they may not always be adapted to all industries, as each has its own unique characteristics and requirements.

In addition, the application of these models requires considerable efforts at the preparatory stage, taking into account critical industry specifics, including the structure and dynamics of capital. It is necessary to take into account various economic conditions, technological processes and other factors so that the assessment is more accurate and reflects the real situation in each specific industry.

Predicative models used to assess the performance of enterprises play an important role in forecasting and forecasting. They allow us not only to analyze the current work of organizations, but also to develop forecasts of future results. Among the most popular approaches to evaluating effectiveness are the preparation of predictive reports, as well as the use of dynamic analysis models, including rigidly deterministic factorial and regression models, as well as situational analysis methods.

One of their key advantages is the ability to visualize various scenarios in the present tense, which, in turn, helps management make more informed decisions. However, there are a number of disadvantages. For example, such models are often unable to take into account all the external factors affecting an enterprise, such as fluctuations in interest rates, inflation, or changes in legislative regulation.

Modern research on methods for diagnosing the effectiveness of enterprises demonstrates that coefficient-based assessment methods are the most widely used among domestic companies. They allow for a more visual and rapid analysis of various aspects of activities, while providing a perspective for a deeper understanding of the internal effectiveness of organizations [6]. Nevertheless, it is important to understand that the application of all these methods should be systematic and balanced, including both quantitative and qualitative indicators, in order to ensure the reliability of the conclusions and make them more applicable in real time.

For successful business, the ability of a company to make all current payments (both to tax authorities and to supplier companies), finance its development, and meet all other obligations in a timely manner plays an important role. In the language of economics, such an enterprise is characterized by acceptable balance sheet liquidity.

To analyze the degree of this indicator in a particular company, a number of indicators are grouped [9].

1. Basic ratios of assets and liabilities:

– the necessary inequality A₁ > P₁. When it is completed, we can talk about the stable position of the enterprise for the current period (the period of drawing up the liquidity balance). This demonstrates the solvency of the organization at the current moment of the balance sheet formation. The company has enough funds to pay off the most urgent debts.;

– the necessary inequality A₂ > P₂ indicates that this company is provided with the necessary funds for timely settlements with credit institutions in the near future. Funds received from the sale of manufactured products on credit are also taken into account.;

– the necessary inequality A₃ > P₃ – an enterprise can count on long-term stable operation (on average, one production turnover cycle), provided that timely funds are received in a stable manner (from sales of products and other payments to this enterprise).

– A₄ >= P₄ – this condition is fulfilled automatically, provided that the first inequalities are met (1-3) and indicates that the company is financially stable, it has enough working capital of its own to pay off all current debts.

Correlation of liquid assets and debt obligations allows us to determine the value of the following indicators:

– current liquidity – characterizes the level of compliance of current assets with short-term obligations. The normal current activity is expressed by the following inequality:

A₁+A₂=>P₁+P₂,                                                          (1)

– prospective liquidity is a forecast of an enterprise’s solvency, taking into account current liquidity and likely future receipts of payments and the formation of future obligations. Normal prospective liquidity is expressed in:

A₃>=P₃,                                                                    (2)

To more accurately determine the degree of liquidity of the company’s balance sheet, the liquidity coefficients are calculated.

2. Debt coverage ratio (current liquidity) – shows the ability of an enterprise to repay its debts only using current assets:

K = (A₁ + A₂ + A₃) : (P₁ + P₂) ,                                                (3)

Given the reality of the situation, it is necessary to take into account the fact that not all assets of the enterprise can be realized simultaneously and in a short time. Therefore, the value of this coefficient in the range of values 1-2.5 is considered acceptable. If the value is below one, then we should talk about a high risk in the field of finance, that is, this company is «unable» to meet all its obligations in a timely manner. If the coefficient is 2.5 or higher, then the company is most likely not rationally allocating its finances. In this case, the assets-liabilities system should be reviewed and «weak spots» should be identified.

3. The coefficient of rapid (urgent) liquidity – shows how quickly a given company is able to cover short-term debts:

K = (A₁ + A₂) : (P₁ + P₂) ,                                                       (4)

The most optimal values for this indicator are numerical values in the range of 0.8–1.5. Here, liquid means all current assets of a given enterprise, excluding inventories (raw materials, goods in stock, etc.), because with their urgent sale, losses will have maximum values.

4. Absolute liquidity ratio – indicates the part of current debts that the company can repay at the moment:

K = A₁ : (P₁ + P₂) ,                                                      (5)

It is considered that the minimum allowable value for this coefficient should be at least 0.2. That is, every day an enterprise with a value of the rapid liquidity ratio equal to 0.2, will be able to cover 20% of urgent payments with liquid assets.

5. The overall balance sheet liquidity indicator is the largest indicator. During a comprehensive audit, it is recommended to use it because it records the ratio of all assets of the enterprise to the volume of all debts. For the correct calculation of this coefficient, special correction factors have been derived for each group of assets and liabilities. The multipliers are determined based on the degree of importance of this group:

K = (A₁ + 0.5 * A₂ + 0.3 * A₃) : (P₁ + 0.5 * P₂ + 0.3 * P₃) ,                                    (6)

For a stable company with normal balance sheet liquidity, the coefficient value should be one or more.

6. The coefficient of provision of own assets – shows the degree of provision of funds necessary for successful financial stability. The absence or lack of the company’s own working capital indicates that all current assets are created on the basis of borrowed funds:

K = (P₄ — A₄) : (A₁ + A₂ + A₃) ,                                                (7)

The standard for this value is more than 0.1 or 10%.

7. The coefficient of maneuverability of functional capital – indicates how much of the company’s equity is invested in working capital. If the value of the indicator decreases, then this positively characterizes the financial policy of the enterprise.:

K = A₃ : [(A₁+A₂+A₃) — (P₁+P₂)] ,                                             (8)

Summing up, it should be noted that in the modern conditions of the Russian market economy, the growth of the efficiency of the functioning of economic entities plays a key role in increasing the competitiveness of individual industries and the state as a whole. This indicator is one of the most important economic characteristics today.

The economic efficiency of an enterprise can be defined as the ratio of the results achieved to the costs required to achieve them. In other words, this concept is that it is necessary to achieve maximum effect at minimum cost. Thus, the central issue becomes the search and implementation of optimal technologies and methods that will make it possible to implement this principle.

A number of key indicators are used to assess the effectiveness of an enterprise. Among them, resource efficiency and resource intensity stand out, which reflect how many products or services can be obtained per unit of resource expended. Cost recovery and cost intensity analyze how effectively an enterprise uses its costs to achieve a certain result. Profitability indicators are also important, which make it possible to assess the profitability of using various types of economic resources, such as fixed assets, working capital and labor.

Economic resources are an important indicator reflecting the level of economic development of a particular business entity. Cost estimation makes it possible to assess how effectively their use is carried out, which, in turn, depends on many factors, both external (competition in the market, relations with suppliers, interaction with government agencies and customer preferences) and internal (qualifications and number of employees, average labor productivity, etc.).

The efficiency of using the economic potential of enterprises is a critical indicator of their competitiveness. It determines the company’s ability not only to survive in the face of market competition, but also to occupy a leading position in its industry. Conducting a regular analysis of the company’s performance makes it possible to identify shortcomings and reserves that serve as the basis for further growth and development in the long term. Therefore, systematic monitoring and optimization of processes are the key to successful operation in today’s market.