Agricultural organizations: management, accounting, development

Let's raise the topic of management accounting in such a specific and rarely covered in this key area, like agriculture. A lot has been accumulated about the state of affairs in this field of data, but it is difficult to call them encouraging. So, what exactly is it about? What is meant by this term?

Under management accounting, understand the system for collecting and submitting information, on the basis of which decisions are made concerning the activities of an organization. Thanks to management accounting systems it is possible to understand the state of affairs - the state of the enterprise, rational or not very distribution of available resources. The ultimate goal of such a system is to increase the efficiency of any production activity.

Main purposes of accounting

As in other areas, the main goal of management accounting at an agricultural enterprise is to provide managers and managers with the information they need to make informed decisions and manage the company successfully. The main tasks include:

1. Drawing up a production plan and budget.
2. Calculation of costs and definition of control measures due to the means of operational accounting.
3. Analysis of the data obtained and development of decisions based on the received reports.

Accounting in agricultural organizations. What are the features?

The system of management accounting at agricultural enterprises implies the achievement of an optimal combination of quality and quantity of output. The level of economic efficiency characteristic of agriculture is determined, firstly, by the indicated ratio (costs-results), directly depending on the degree of efficiency of the use of all production resources. Second, from the manageability of those processes that are characteristic of them.

The management system of the agricultural organization should be built on the basis of costs as the main motivating factor. The system of their optimal distribution must provide the necessary information with the necessary degree of detail, help identify and implement those activities that can be considered highly profitable. It is this policy that can improve effectiveness in this area.

About reforms in the field of agroindustrial complex

For several decades our country has been experiencing certain reforms, the purpose of which is to give maximum opportunities to the development of agriculture. The goals and objectives of such reforms are described in full detail in Government Resolution No. 717 of the Russian Federation, issued in July 2012. It lists the main tasks entrusted to the adopted for the period 2013-2020. Program.

What is this serious document about? Priority is given to the optimal organization of agricultural land, stimulating the growth of food production and all major types of agricultural products, preventing the spread of diseases among animals by financing relevant activities, supporting the infrastructure of the agricultural market. According to the decree, the sales markets should be regulated with greater efficiency, strengthened and supported the so-called small economic forms of agricultural organizations.

Attention should be paid to more effective interaction of state control bodies with the agrarian sector. The main objective for this period is a gradual increase in the profitability of this important industry, the growth of the quality of life of rural residents and the creation of conditions under which innovative developments and decent technical support of agricultural enterprises are possible.

About finance

For these years, a serious amount of money will be allocated to the federal budget for the implementation of the program. According to the expectations, the financial injections are projected to bring a number of important changes in the development of the industry. But we must remember that the main condition is the targeted and as rational as possible use of the allocated funds.

We should not forget that changes in the structure of world agriculture that appeared after the introduction of sanctions by our country to import certain types of products require a sharp increase in the efficiency of this sector and a thoughtful organization of agricultural products produced by domestic suppliers.

Successful agricultural enterprises should increase labor productivity, achieve a higher level of crop production efficiency, ensure the continuity of harvesting the required amount of agricultural products in the country to eliminate its deficit. Special attention should be paid to the effective use of cash assets - lands, plowlands, farms, gardens, livestock, transport, etc.

What is important?

The agrarian sector requires the involvement of young and competent managerial specialists, new innovative programs and developments at each of the production sites. Organization of an agricultural enterprise requires a clear distribution of responsibilities. Sources of financing, both proprietary and subsidized, should be used with maximum efficiency.

In order to successfully achieve these goals, every business entity in the field of agricultural production must have a well-established internal control system. Without it, it is impossible to establish efficient production activities, to identify the necessary internal reserves.

Where is the system?

The main difficulty inherent in the management of enterprises of the agricultural complex is the lack of complete and reliable information, without which thoughtful management decisions are impossible. A system of unified methodological recommendations, according to which it is possible to organize accounting and management of certain sectors of the economy, is currently lacking. Because of this, many enterprises are satisfied with the volume of income is much lower than possible, unplanned expenses increase, reliable data on the cost of production are lost.

These factors negatively affect the profitability of all sectors of agriculture. Unfortunately, the agro-industrial complex of our country is not yet united by a specialized information management system, thanks to which the possibility of optimizing the activity of agricultural enterprises could appear.

On the value of accounting

In the light of the foregoing, management accounting is the main tool through which it is possible to obtain all the necessary data for making a balanced economic decision. Having it in the enterprise leads to the formation of a unified information system and ensures the effectiveness and timeliness of the decisions made by management and, as a result, the successful development of the agricultural organization.

On the basis of accounting information databases other than accounting databases are created, but without which important decisions can not be made. This system also allows for monitoring on the most relevant sectors of the economy and encourages the development of corporate spirit among employees.

Why is not it going?

As has already been said, unfortunately, so far there is no single system of management accounting for the whole sector of this sector. Measures for its implementation are rather isolated cases. The reason for this is the many difficulties and peculiarities inherent in activities in this particular industry, a traditionally conservative attitude toward the majority of changes in the management sphere.

Information on the undeniable advantages and additional opportunities that management accounting is able to give to agricultural organizations, is perceived with difficulty and does not find supporters. As a result of specialists who are able to organize this account effectively, there is not enough.

What can be done?

Where is the solution to overcome the current situation? According to analysts, it makes sense to resort to the following measures:

1. Adapt the existing Western experience to the Russian conditions, not discounting the availability of successful domestic developments (including the Soviet period), and apply them competently in the changed conditions of the modern economy.
2. Develop fundamentally new parameters, according to which an effective organization of agricultural production is possible, combining them into a harmonious system with increasing control over the decisions made in the field of finance and management.

About competitiveness

If the problem of creating a sustainable viable information management system introduced at Russian agricultural enterprises will be resolved, the competitiveness of this industry will increase significantly. This, in turn, will allow Russian agrarians to increase the total volume of sales of their own products and strengthen existing territorial positions within the domestic market.

Due to the lack of clear normative documents in the sphere of such accounting, Russian legislation requires the development of the necessary standards with a detailed description of the methods and features of their implementation according to the industries.

Organization of agricultural production in theory. Why are there no results?

Theoretical studies existing in this field to this day do not provide an effective picture of the possibilities of management accounting in its practical application. Their authors are mainly engaged in attempts to transform existing Western methods without taking into account the industry peculiarities of Russian agricultural organizations. To understand the importance of managers and the feasibility of introducing a management accounting system, serious economic research is required.

The basis of accounting should be a well thought-out procedure for collecting and processing all the necessary primary information. Based on the aggregate of such data, it is possible to establish cost control in the context of individual objects. We are talking about different crops or whole groups (in plant growing) or species of animals in another branch - livestock.

On budgeting

The method of management accounting, called budgeting, allows managers of agricultural organizations to plan their own opportunities with subsequent analysis of the results. What are the key points of this method? These include targeting, coordination and costing. It is carried out by compiling operational budgets with control over their activities through performance reports.

The specific nature of the budgeting of agricultural organizations has distinctive features, namely, the need to plan a wide range of indicators (sowing volumes and fertilizer input, planned harvesting, growth of milk yield and livestock, quantity of mixed fodder, etc.). The compiled budget is obliged to take into account the presence of seasonal fluctuations, the peculiarities of each industry (poultry, plant growing, livestock, beekeeping), correction for the climatic factor and events of a physiological nature - from the destruction of the crop to the loss of livestock.