Controlling is an tool for planning, accounting, analysis and control of the category of the action within an project; it is used for decision-making on the basis of a scheme for data compilation and processing, which is a system of stable appraisal from different points of company’s business, of company’s branches, managers and employees, and which include accounting, analysis and control as an incorporated function.
This step is characteristic for organizations which have activated for an extensive period of time. The tasks of the step are the explanation and analysis of the existing information organism of the organization, mainly the accounting organism. As a result, there appear the schemes of the organizational administrative structure, of the information flow of the enterprise, explanation of the accounting system. Specificities and disadvantages of the existing system should be resolute on this step.
The class and the number of the information required for the successful management of the organization are resolute. Exclusion in the existing information system is outlined, reasons for this are clarified and the scope of the changes of the management system is appraised.
The significant dignified scheme shall be shaped in a form capable to collect process and produce information relevant to the needs of the managers. Centers of liability are assigned on this step – segments in the organization headed by persons in indict of decision-making. Furthermore, variants for registration of the production costs and reckoning of the price cost of the production /standard-cost, direct-costing/, technique for calculation of the major cost of the operations /ABC-cost/, technique of calculation by targets /target-cost/, strategic cost management method.
It is characterized by the implementation of a management accounting system. Management accounting represents aggregate of statements and summary information drawn by the centers of responsibility, which include information with the related level of legalization.
Assemble of an domestic production analysis system. The key purpose of the study is appraisal of the financial and economic process of the company on the basis of the management analytical accounting and development of suggestion for its improvement. So far it has become clear that the main assignment of controlling is to provide informational and consultation endorsement to the management of the company. As we all know, the management of the company can be divided into strategic, operational and dispositive one. Thus, controlling as an instrument of the management could be divided into:
- strategic /making sure that the right job is done
- operational /making sure that the job is done right
- dispositive /what to do if the job is not being done right