IMPLEMENTATION OF THE IMPROVED METHODOLOGY IN PRACTICE AND ASSESSMENT OF ITS ECONOMIC EFFICIENCY

Abstract

The article examines the practical implementation of an improved management accounting and reporting methodology and the assessment of its economic efficiency. It substantiates that implementation fails most often not because of methodological weakness but because the data collection layer is left undefined, so that reporting forms are introduced without the registers that feed them. A system of fourteen interrelated management registers is developed, covering the processes from business transactions to management actions with the purpose of providing management reports with reliable information on a regular basis. A framework for assessing economic efficiency through direct, indirect and risk-related effects is also proposed. The main conclusion is that the efficiency of the methodology should be measured by the quality and timeliness of decisions it supports, and not solely by the reduction in reporting labour.