DIRECTIONS FOR IMPROVING MANAGEMENT ACCOUNTING IN BUSINESS ENTITIES

INTRODUCTION
Large-scale reforms are being carried out to support economic entities, to develop them by attracting
modern technologies to the industry, to ensure effective management of business entities in our
country.Currently, one of the most pressing issues is the organization of financial reporting of business
entities in accordance with international standards. Incentives are also provided for companies that report
financially in accordance with international standards.

The introduction of management accounting in enterprises is the most effective way to solve the
problems facing the enterprise. Accounting management methods allow timely detection of errors in the
activities of the enterprise, timely correct the identified errors and make strategic decisions based on the
collected and processed data.

At present, there are no unresolved issues in the formation of management accounts of enterprises.
Qualified professionals have a sincere interest in the work done by the manager, patience and careful
strategy help the organization to avoid sharp turns and keep management records in the enterprise, leading
to minimal losses.
On February 24, 2020, the President of the Republic of Uzbekistan Shavkat Mirziyoyev adopted a
resolution ―On additional measures for the transition to international financial reporting standards‖ to solve
problems in the industry.In order to accelerate the transition to international financial reporting standards,
provide foreign investors with the necessary information and data, expand access to international financial
markets, as well as improve the system of training of accounting and auditing specialists in accordance with
international standards, joint stock companies, commercial banks, insurance companies and large
taxpayers. from 2021, the incorporated legal entities will organize the preparation of financial statements on
the basis of international standards (IFRS) and from the end of 2021 will prepare financial statements on the
basis of international standards.

In addition, the President of the Republic of Uzbekistan Sh.M. Mirziyoyev emphasized the importance of
simplifying the licensing and permitting procedures for entrepreneurs of the most complex industry and the
development of draft laws ―On small and medium-sized businesses.‖ This will serve the interests of
economic entities in our country and will further improve the conditions created for them. In turn, the efficient
and rational use of such opportunities requires strict management .

THE MAIN FINDINGS AND RESULTS
It is important to remember that management accounting is not a frozen system, but a flexible process
that must adapt quickly to any external and internal changes.In order for enterprises to achieve economic
efficiency, a single properly selected cost accounting system provides a basis for significantly expanding
business efficiency and increasing enterprise revenues.However, it is not enough to choose an appropriate
cost accounting system, it is necessary to apply management accounting methods.They depend on the
distribution of costs (direct and indirect, constant and variable) rather than in terms of accounting for the cost
of production, which allows for more accurate information about the structure of management costs.
At each stage of the current activity of management accounting, it is important to follow the established
principles. Dynamics, rationality, efficiency – these are the basic principles of management accounting in the
organization, and adherence to them is the key to the success of the enterprise.Management accounting is
a system that allows you to analyze the financial and economic condition of the enterprise, optimize
resource allocation costs and improve financial performance as a result of the organization and
implementation of systems such as collection, registration, summarization and presentation of objective
information about the organization.

Unfortunately, the Covid-19 pandemic, which has now reached the level of a pandemic that has spread
throughout the world and has become a problem, has not bypassed Uzbekistan, like all countries. In a
pandemic, the economies of many countries are experiencing a sharp decline.
Taking into account that entrepreneurship is the main component of the country’s economy, the
government has adopted a program of measures for the development of entrepreneurship in order to ensure
the stability of our economy during the pandemic.To ensure the development and stability of this sector,
funds and subsidies are allocated from the state budget. Such reforms are proving to be the most correct
and effective way against the background of economic downturns in the world economy, and the
correctness of these reforms is recognized by the world community.
The main purpose of management accounting in business entities is to find reserves to increase the
efficiency of the enterprise. Management accounting allows you to effectively solve a number of tasks:

1. Implementation of business planning through budgeting;
2. Cost management and optimization using operational data;
3. Analysis of deviations of current indicators from planned ones on the basis of management reports;
   The organization of management accounting in business entities is based on certain principles of
   effective management policy of the enterprise. These principles include:

1. Frequency corresponding to the production cycle;
2. Continuity and repeated use of information;
3. Formation of acceptable reporting indicators for all levels of management;
4. Application of budgeting;
5. Evaluation of the performance of separate structural units;
6. Reliability, completeness, speed and ability to analyze information;

In our opinion, effective management of management processes, ensuring the transparency of reporting
data also depends on the correct organization of the audit system. It should be borne in mind that each
enterprise will determine future planning based on the results of reports for the past and current period.To
this end, it is beneficial for the company to conduct an audit of each company once a year, and serves as a
guarantee of providing open and reliable information for future cooperation.The audit will also strengthen the
reputation and reputation of financially stable and efficient enterprises.
Automation of management accounting is of great importance for the effective organization and
improvement of management accounting in the republic.
Automation of enterprise management accounting is highly effective if it meets the following requirements:

1. Completeness and objectivity of the reflection of all the facts of economic activity;
2. Timely recording and submission of information;
3. Significance of indicators;
4. Integrity of the management accounting system;
5. Intelligibility for all users;
6. Regularity.

The main stages of the formation and implementation of automation for the effective organization of
management accounting, taking into account the fact that it is carried out in several stages:

1. Production and approval of specifications;
2. Development of the enterprise strategy with definition of the purposes and priorities;
3. Analysis and diagnostics of the existing organizational structure, system of financial and economic relations, organization of production, planning and accounting system.
4. Creation of a database for the implementation of the management system;
5. Development of the financial structure of the enterprise and identification of centers of financial responsibility;
6. Development of cost management system, cost classification;
7. Formation of management reporting system;
8. Creating a budget system;
9. Introduction of administrative accounting;
10. Process automation.

In the future, appropriate rules will be developed that determine the rules and regulations at each stage
of the implementation of automation of management accounting and the definition of the goals and strategy
of the enterprise.
They are reflected in special regulations that are documents that reflect the policies of enterprises.
The automation process in enterprises must be systematic, which, in turn, serves to prevent common
financial errors and additional financial costs and wasted time by correcting them. Management accounting
software allows you to solve management and reporting tasks by automating processes.
The management account provides the following information to the management:

1. Valuation of shares;
2. Profit calculation;
3. Cost formation;
4. Substantiation of sales prices;
5. Income and expenses.
   The data obtained is analyzed and prepared for decision making. During the analysis:
6. Determines the targeted use of resources;
   2.Determines the ability of the organization for further growth and development;
7. Prepares information on the existing range, production or sales volume;
8. Investment policy will be developed.
   CONCLUSION
   The data obtained and analyzed serves as the basis for the following management accounting planning
   function.Based on its principles, management accounting organizes full control over the enterprise, forms an
   internal audit system, compares current and planned indicators and takes measures to prevent significant
   deviations in the future.In any condition, it is very important for a business to organize management
   reporting with accurate and in-depth analysis in order to develop its financial activities and achieve economic
   efficiency. This will be a key factor in determining the future of the sector.