Organization of accounting by responsibility centers as an element of effective performance of managing companies

Abstract

The specificity of the activity of managing organizations directly influence the organization of their accounting system. Limited material and production resources and income add special significance to establishing a system of formation of the information about costs and income by responsibility centers. Organization of accounting by responsibility centres in this case becomes a tool of effective and timely control and administration of a managing company’s activity, a tool of increasing the responsibility for the performance at all levels. The article contains the authors’ study of the specificity of accounting by responsibility centers which allows for its use in the managing companies, working out the requirements for effective organization of accounting by responsibility centers. The authors provide characteristics of accounting by responsibility centers and suggest practical recommendations for organizing accounting by responsibility centers in managing organizations. A serviced apartment building is studied as a responsibility center. The authors identify indicators for control and evaluation of the corresponding centers’ performance. They define and group requirements for organizing accounting by responsibility centers in accordance with the functional feature. The suggested sequence of the accounting tasks makes it possible to optimize the process of working out managerial decisions based on correctly selected and necessary information.