Department Accounting Effectively Solve Cost Control Problems

Cost control is actually a process of full participation and individual control.

The full participation of a company means that every person in the enterprise will affect the result of cost control, but the key point of cost control is not the individual individuals, but the direct leaders of these individuals -- the department managers who are the "soldiers to the end".

The most important function of modern enterprises in defining departmental managers is to control their cost effectively.

If department managers really implement effective cost control for their department, they will achieve the goal of cost control of the whole enterprise.

Therefore, the implementation of departmental accounting method is an effective tool.

Departmental accounting is a kind of economic control for departments.

It is also an economic accounting method that fully authorizes department managers.

The main contents are: the cost and profit indicators of the whole year are issued to all departments. Under the control of this index, the department managers can decide their own revenue and expenditure items independently. The company designated financial, administrative and auditing departments (or a specialized project team) regularly supervises and checks their expenses, checks their expenses, announces them regularly, sums up the year-end fees, rewards and punishments, and the department managers have full autonomy in the whole department's expenses, but at the same time, they also assume full responsibility.

In order to stimulate the sense of cost control of department managers and employees, the general accounting methods contain such information: the annual cost is lower than the budget and the profit is higher than the budget, and the reward is proportionately. The reward method is to reserve the department according to a certain proportion, whereas vice versa.

The annual cost control will directly affect the next year's management of the department managers.

The enterprise achieves the goal of cost control through the control of department managers, the enhancement of employees' control consciousness and the conscious supervision of employees - department managers.

The index of departmental accounting includes economic income and expenditure, but it is not limited to this. There are other indicators.

The advantage of departmental accounting is to fully empower department managers, greatly mobilizing the enthusiasm and responsibility of middle managers and employees. The cost profit is linked to the interests of individuals (departments). Every department, every supervisor and every employee will pay close attention to cost profit and pursue the lowest cost and maximum profit, so as to realize the reduction of company's operating cost and the maximization of profit.

It can be said that departmental accounting has solved two problems: no matter whether the department heads are concerned or not, and there is no basis for management, there is no basis for the implementation of the system. How does the department heads manage it? Why?

The most important and crucial problem in the implementation of departmental accounting is how to determine the budget of a department, the high budget, the loss of accounting significance, the low budget, the difficult operation of departments, and the key is to determine the "degree". If we want to deal with this problem, the key is to mobilize the power of the financial and administrative departments (cost operation departments), and at the same time, we should consider reducing the execution cycle when making this index, such as a quarter.

In the first, second (or even more) period of assessment, it is necessary to carry out a trial run according to the actual fine-tuning.

Concrete

Method and proportion:

1, personnel office costs 70%;

2, equipment and facilities maintenance (depreciation) 25%;

3, other unforeseen expenses 5%;

To sum up, the main task of cost control is to clarify the responsibilities and powers of the department managers, and make clear the cost control tasks of the Department as one of the important contents of the assessment and supervision department managers, and achieve the goal of "cost control" within the company through the control of department managers and the general supervision of employees.

The cost control through this way can effectively solve the cost control problems of enterprises, which is beneficial to the long-term development of enterprises.