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Management accounting is not regulated by the national legislation of a country, but in order to receive full and reliable information, it must be organized in compliance with the generally accepted international principles. The company offers arrangement of management accounting in compliance with the international financial reporting standards: IFRS, US GAAP. The choice of the main accounting system (IFRS, GAAP) depends on the historically predetermined situation in the company, sometimes it is determined by requirements of foreign investors.

The expertise of IDelync’s experts in the field of management accounting and its automation allows to provide the following services:

• Developing a company’s financial structure;
• Building of the model of management accounting, setting up connections and means of exchange with other subsystems: bookkeeping, budgeting;
• Developing the main reporting forms, singling out the key indicators;
• Developing the key records: card of accounts, analytical profiles.

The required stages in a management accounting arrangement project are:

• Preparation of guidelines or recommendations as to arrangement of managerial document flow, regulations on coordinated action of a company’s services;
• Providing consulting support to a company’s employees on issues of implementation of the developed method of management accounting ;
• By arrangement with the Client – assistance in implementation of all developed documents, Company’s regulations.

IDelync offers the following options of arrangement of bookkeeping and tax accounting:

• “From scratch”. This service is recommended for companies at the stage of their creation or ultimate restructuring. Qualified arrangement of bookkeeping and tax accounting at this stage will allow to avoid mistakes and minimize financial risks related to violation of the existing rules and standards of bookkeeping and tax accounting of the Russian Federation.
• Arrangement of bookkeeping and tax accounting at an operating enterprise. This option is in demand as the preliminary stage preceding  accounting automation, when new kinds of activities appear or in case the accounting principles of the existing ones are changed.

Each of the offered options includes works on analysis of the current taxation scheme, a new scheme is developed or a list of measures for its optimization.

In the course of works, our specialists shall perform:

• analysis of peculiarities of the company’s activities and its current condition of bookkeeping and tax accounting;
• development of optimal taxation scheme for a specific company or recommendations as to optimization of the existing one;
• development (improvement) of the working Chart of Accounts and Accounting Policy in accordance with the company’s peculiarities;
• preparation of guidelines or recommendations as to organization of bookkeeping documents flow, regulations on coordinated actions of the company’s services in the area of bookkeeping and tax accounting;
• by arrangement with the Client – assistance in implementation of all developed documents, the Company’s regulations.

When performing the abovementioned works, IDelync’s experts try to take into account the future direction of the Company’s development: automation of bookkeeping, tax accounting as well as management accounting, thus ensuring an uninterrupted process of improvements in the area of accounting and organization of the Company’s activities.

IDelync offers services of arrangement of the budgetary process and budget modeling for companies from different areas of business.

By arrangement of budgetary process of a company we mean the following:

developing documentation regulating the organizational issues of budgeting: working out optimal financial structure of a company, determining the financial responsibility centres, their functions and areas of responsibility:

• budgeting and control regulations;
• developing documentation describing and defining methodological aspects of budgetary process accepted in a company – goals, tasks and budgeting principles; list of budgets, their kinds and formats;
• holding training seminars for a company’s responsible personnel engaged in the process;
• providing consulting support to a company’s employees regarding the issues of implementation of the developed budgeting technology;
• gathering, analysis and formalization of requirements to automation of the budgetary process (by a separate arrangement with the Client).

The qualifications of IDelync’s experts in the area of management accounting and its automation allows to provide services in budget modeling both within the framework of a separate project or as a stage of preliminary works  in projects of integrated automation of a company’s management accounting.

Therefore, the full cycle of implementation of the budgeting technology in a company consists of the following stages:

Stage 1. Identification of the company’s financial structure.

Stage 2. Development of a budgeting model.

Stage 3. Development of procedures for the budgetary process.

Stage 4. Automation of the budgetary process.

IDelync provides custom-tailored services to each Client and the complete list of the stages of works, their price and terms are determined on the basis of a company’s requirements.

There is a number of differences between the principles of accounting accepted in certain Russian and international standards.

For convenience, the existing differences can be divided into two groups:

• The first group of differences can be explained by the fact that some rules do not exist in Russia, for example, those related to business combination, depreciation of assets, financial instruments, etc.;
• The second group of differences can be explained by the fact that the Russian Accounting Standards (RAS) and the IFRS have different rules applicable to identical issues, for example, those related to finance lease, reserves, information disclosure in financial statements, etc.

Due to this, when IFRS financial statements are prepared on the basis of the RAS, it is necessary to perform restating. Restating stands for analysis of financial statements adopted by a Russian enterprise, making amendments required for preparation of a comprehensive financial report of the company, which would in general comply with the international financial reporting standards (IFRS, US GAAP).

The full packet of financial statements includes:

• Statement of financial condition (the Balance sheet);
• Statement of total revenue (complex profit and loss);
• Cashflow statement;
• Statement of changes of shareholder equity;
• Key accounting policies;
• Notes to the financial statements;

In the projects involving restatement of financial statements in compliance with the IFRS requirements, IDelync are guided by the principle of individuality of a Client, taking into account the specifics of Client’s activities, prospects of further development and dynamics of capitalisation of a Client’s company.

As a result, the financial statements prepared in accordance with the requirements of international standards may not only be used as financial statements for attracting additional funding or procedures of the company’s capitalization, but also as an instrument for:

• determining strategic key indicators;
• budgeting (planning) procedures in companies;
• financial analysis of attainability of the fixed indicators and assessment of dynamics of a company’s development;
• the mechanism of control of a company’s value.

Apart from financial statements, IDelync provides services of consolidation of financial statements for a group of companies.

The main purpose of preparing consolidated statements is presentation of activities of a holding or a group of interrelated organizations (mother, daughter and independent) as an activity of a single economic unit. A mother company submits consolidated statements in order to objectively and faithfully demonstrate to the owners what their investments are like, that is control and ownership of net assets of enterprises (IFRS 27).

The services of preparation and consolidation of statements may be completed on Client’s request with the services of development of regulations as well as with audit of international and Russian statements.

Management accounting suggests automation of the following areas:

• Budgeting;
• IFRS accounting and reporting;
• IFRS consolidation;
• Analytical management reporting;
• Key indicators and Balanced Scorecard.

The information of operating accounting is the source of primary data for management accounting. This is the very reason why during automating management accounting, it is important not only to build a system of management reporting, but also connect it to the systems of operating accounting excluding the possibility of multiple entry of primary information into different systems. Taking into consideration the fact that nowadays most of Russian companies have solutions in automation of operating accounting based on 1C: Enterprise products, IDelync actively uses products of this family for automation of management accounting. This often  helps not only to set up integration mechanisms fast and in a quality manner, but also fully realize operating and management accounting of a company in a single information solution.

By studying a company’s needs carefully, IDelync’s experts offer variants of solutions for automation of management accounting both on the basis of typical solutions of 1C: Enterprise, and on the basis of proprietary solutions for budgeting and accounting in compliance with the international standards.

Realization of projects of comprehensive automation of management accounting is performed stepwise in the following sequence:

Stage 1. Pre-project examination (analysis).

The purpose of this stage is to indentify and agree with the key experts on business requirements to the system being developed, functionality of the solution and automation project results in general, work out proposals on selection of a platform and configuration for realization of the system. Special attention in development of the system of operative accounting is paid to the issues of potential use of the data of this system as a source for the future system of management accounting.

Stage 2. Preparation of the “Project vision” document.

On the basis of the pre-project examination, IDelync’s experts together with the Client’s key specialists prepare “The Project Vision” document. The purpose of this stage lies in formalization and recording the understanding of the main Project parameters aimed at comprehensive automation of operative accounting, achieved at this stage of examination.

Description of the following sections can be found in the “Project Vision” document:

• The structure of the Solution in terms and objects of the selected platform and configuration;
• The list and description of the realized functional of the Solution as well as deviations from the base performance capabilities of the selected configuration;
• The necessity and the level of integration of the proposed Solution with other information systems (Client-bank, Web-application, OLAP-reporting, etc.)
• Recommendations on provision of (optimization) required hardware and technical resources for optimal operation of the Solution.
• Stages, time-frames and budget of the Project’s realization.
  

Stage 3. Design, setup and adjustment of the information solution.

The following tasks are realized at this stage:

• Methodological adaptation of regulated processes, document flow and reporting;
• Designing changes in the information solution, their realization in the system;
• Setup and creation of a prototype for adjustment and checking of correct realization of accounting and reporting of the obtained solution;
• Initial fill of the information solution (fill of reference data, transfer of the original remainders).

Subsequent to the results of this stage, the information solution is formed on the basis of the selected typical configuration or IDelync’s own decision, adjusted to the needs of the enterprise, in accordance with the current requirements to automation, defined at the stage of Pre-project examination. The obtained information solution is handed over for beta testing.

Stage 4. Beta testing and user consultation.

The purpose of the stage of beta testing is full scale testing of the realized settings and performed adjustment of the information solution, with close support of a Consultant over the whole of the agreed period of time. At this stage the enterprise’s employees are maximally involved into work with the obtained information solution, receiving all required consulting support from the Consultant and learning the peculiarities of work of the information solution.

Stage 5. Productive operation of the information solution and post-project maintenance.

Upon successful completion of the stage of beta testing, an information solution is handed over to productive operation. The enterprise’s experts independently operate the information solution turn to the Consultant only when necessary.

The key to successful realization of an operative accounting automation Project is in the Project’s containing a full list of the Executor’s services: from assistance in realization of current requirements to comprehensive methodological support over the whole duration of the project. This is the reason why the project team from the side of the Executor must include experts in the area of IT, system analysis and financial analysis.

IDelync provides services of comprehensive automation of operative accounting of enterprises representing different kinds of business.

In this case operating accounting stands for accounting of the following business processes:

• Sales and CRM;
• Procurement;
• Services;
• Stocks;
• Production;
• Bookkeeping and tax accounting, regulated reporting;
• Treasury;
• Personnel and salary;

Executive services of a company require the data of operative accounting for carrying out current activities and timely solution of arising issues, and they are also the source for management accounting data. The information received as a result of operating accounting is processed, supplemented with necessary analytical cuts and is further transformed into aggregated data of management accounting.

Realization of projects of comprehensive automation of management accounting is performed stepwise in the following sequence:

Stage 1. Pre-project examination (analysis)

The purpose of this stage is to indentify and agree with the key experts on business requirements to the system being developed, functionality of the solution and automation project results in general, work out proposals on selection of a platform and configuration for realization of the system. Special attention in development of the system of operative accounting is paid to the issues of potential use of the data of this system as a source for the future system of management accounting.

Stage 2. Preparation of the “Project vision” document

On the basis of the pre-project examination, IDelync’s experts together with the Client’s key specialists prepare “The Project Vision” document. The purpose of this stage lies in formalization and recording the understanding of the main Project parameters aimed at comprehensive automation of operative accounting, achieved at this stage of examination.

Description of the following sections can be found in the “Project Vision” document:

• The structure of the Solution in terms and objects of the selected platform and configuration;
• The list and description of the realized functional of the Solution as well as deviations from the base performance capabilities of the selected configuration;
• The necessity and the level of integration of the proposed Solution with other information systems (Client-bank, Web-application, OLAP-reporting, etc.);
• Recommendations on provision of (optimization) required hardware and technical resources for optimal operation of the Solution.
• Stages, time-frames and budget of the Project’s realization.

Stage 3. Design, setup and adjustment of the information solution

The following tasks are realized at this stage:

• Methodological adaptation of regulated processes, document flow and reporting;
• Designing changes in the information solution, their realization in the system;
• Setup and creation of a prototype for adjustment and checking of correct realization of accounting and reporting of the obtained solution;
• Initial fill of the information solution (fill of reference data, transfer of the original remainders).

Subsequent to the results of this stage, the information solution is formed on the basis of the selected typical configuration or IDelync’s own decision, adjusted to the needs of the enterprise, in accordance with the current requirements to automation, defined at the stage of Pre-project examination. The obtained information solution is handed over for beta testing.

Stage 4. Beta testing and user consultation

The purpose of the stage of beta testing is full scale testing of the realized settings and performed adjustment of the information solution, with close support of a Consultant over the whole of the agreed period of time. At this stage the enterprise’s employees are maximally involved into work with the obtained information solution, receiving all required consulting support from the Consultant and learning the peculiarities of work of the information solution.

Stage 5. Productive operation of the information solution and post-project maintenance

Upon successful completion of the stage of beta testing, an information solution is handed over to productive operation. The enterprise’s experts independently operate the information solution turn to the Consultant only when necessary.

The key to successful realization of an operative accounting automation Project is in the Project’s containing a full list of the Executor’s services: from assistance in realization of current requirements to comprehensive methodological support over the whole duration of the project. This is the reason why the project team from the side of the Executor must include experts in the area of IT, system analysis and financial analysis.