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Factors affecting the Management Accounting information system in traffic construction enterprises
Posted date 27/10/2017
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Posted date 27/10/2017
17.360 view
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The opening of the economy has created many opportunities and challenges for Vietnamese enterprises in general and transport construction enterprises in particular. Accordingly, more and more foreign enterprises with potential in capital, technology and good management skills are participating, creating increasingly fierce competition in a common, equal playing field.
Dr. Le The Anh
Faculty of Accounting - Dai Nam University
The opening of the economy has created many opportunities and challenges for Vietnamese enterprises in general and transport construction enterprises in particular. Accordingly, more and more foreign enterprises with potential in capital, technology and good management skills are participating, creating increasingly fierce competition in a common, equal playing field.
Vietnamese transport construction enterprises that want to stand firm and develop sustainably in the market need to have the right strategic orientation as well as optimal use of resources. To do that, each enterprise must build for itself a flexible and effective management accounting information system to analyze, process and provide important information in the process of planning business strategies and effectively control the operation process to ensure good implementation of the set goals. So what are the evaluation criteria and factors that affect the management accounting information system in transport construction enterprises?
1. Evaluation criteria for management accounting information systems in traffic construction enterprises
In the management of transport construction enterprises, information is a resource and an asset that plays an increasingly important role. In which, management accounting information is one of the important tools for management and decision making. To ensure the information needs of managers in making the right decisions on short-term business plans and long-term business strategies, the management accounting information system must ensure that the quality of information provided is at a high level. A management accounting information system is considered complete if it meets the following criteria:
- Ensure completeness of information : Build a complete reporting system, summary indicators and detailed indicators necessary for business management, cost management, risk management, and determining the business efficiency of each construction department, each item, and each project.
- Ensuring the timeliness of information : As a special economic sector that is affected by the natural environment, construction terrain, etc., management accounting information in traffic construction requires a relatively high level of timeliness. For example, seaport construction projects affected by tides or construction projects during the rainy season need to be provided with timely information on construction progress for managers to analyze and consider production management decisions, etc. In general, the periodic preparation of management accounting reports for traffic construction enterprises will be more flexible to ensure that managers' information needs are met.
- Ensure honest and reasonable information : Management accounting information needs to be honest and reasonable so that the unit's leadership knows clearly the strengths and weaknesses of their own unit, accurately determines the performance of each construction team and group to serve the decision making of effective construction organization structure.
- Ensuring efficiency : That is, the information must be complete, timely, honest, and accurate, but the cost of obtaining information must be reasonable, not costly in terms of time and material costs in collecting, processing, and providing information. Investors require traffic construction enterprises to not only ensure safety during construction, ensure quality and construction progress, but also have reasonable prices and demonstrate competitive prices in the construction market.
2. Factors affecting management accounting information systems
There are two groups of factors affecting the management accounting information system: internal factors and external factors of the enterprise.
Internal factors of the business
First, the awareness of the Board of Directors: To complete the management accounting information system well, the first influencing factor is the awareness of the board of directors at all levels of the enterprise. If the board of directors is aware of the importance and role of the management accounting information system, the construction and completion of the management accounting information system will be effective and of good quality. Because the information from the management accounting information system directly serves the board of directors of the enterprise to make decisions on production and business plans, and plan the business strategy of the enterprise. Therefore, right from the stage of determining the information needs, the board of directors of the enterprise needs to grasp the business performance of each department, each construction team, which project, which construction brings more or less benefits to the enterprise will affect the decision on organizing the management accounting information system.
Second, the capacity and sense of responsibility of the staff: With the characteristics of dispersed production and business activities, the production site is also the place of consumption, so the ideas and requirements of business leaders on the management accounting information system need to be specified by a system of indicators and implemented by the staff of the business. The staff need to have enough knowledge and skills to ensure that from the stage of collecting information from projects, works, entering data into the information system to processing data, building the management accounting system must ensure consistency, accuracy, completeness, and timeliness for the management accounting information system. In the process of developing the management accounting information system, updating new knowledge and skills for staff, especially those working directly at construction sites, also contributes to improving the effectiveness of the management accounting information system.
Third, information technology platform: management accounting information system can only be applied in enterprises that have an information technology system that has reached a certain level: a centralized (online) management information technology system throughout the enterprise. For enterprises whose information technology system is not yet developed, dispersed, and not processed online, even if they want to, they cannot effectively deploy a management accounting information system. Along with the information technology system, centralized data management requires enterprises to have the financial resources to build the system.
Factors outside the business
First, the competition between traffic constructions: The decisive factor for the success or failure of each enterprise in the market depends on the business strategy and the allocation and use of resources appropriately and effectively. The management accounting information system is a powerful tool serving the management of internal operations of each enterprise, so there are often no common standards. Therefore, each enterprise needs to invest a lot of time and resources to build, consolidate and perfect the management accounting information system that is specific to the production and business activities of the enterprise. Each enterprise must keep and build its own information to make decisions to gain many advantages in the market, the most important of which is the information from the management accounting information system. Therefore, no enterprise can easily transfer the experience and technology of the management accounting information system to another enterprise.
Second, the legal system: the legal system has the effect of guiding enterprises to build and perfect the management accounting information system. For enterprises that have built a management accounting information system, it is necessary to complete it more fully. For enterprises that do not have a management accounting information system, there is a direction to focus resources on building it. The management accounting information system brings high efficiency to each enterprise, which also means making the country's economy more and more developed. Therefore, a fully oriented legal system will help enterprises quickly approach and complete the implementation of the management accounting information system.
In short, in today's increasingly competitive business environment, in order to survive and develop, enterprises in general, and transport construction enterprises in particular, need to build a management accounting information system to make the most of their available resources on the basis of effective resource allocation and good management of possible risks. Therefore, researching, developing criteria and properly assessing the level of influence of factors on the management accounting information system is a mandatory task for each transport construction enterprise, creating for each enterprise an effective tool for management and operation, making the right decisions to achieve the ultimate goal of safety and profit./.
1. Nguyen Ngoc Quang (2011), ' Business management accounting' , National Economics University Publishing House
2. Tran The Nu (2013), ' Building a cost management accounting model in small and medium-sized commercial enterprises in Vietnam' , PhD thesis in economics, National Economics University, Hanoi.
3. Hoang Van Tuong (2011), ' Organizing management accounting to enhance business management in Vietnamese construction enterprises' , PhD thesis in economics, National Economics University, Hanoi.
Faculty of Accounting - Dai Nam University
The opening of the economy has created many opportunities and challenges for Vietnamese enterprises in general and transport construction enterprises in particular. Accordingly, more and more foreign enterprises with potential in capital, technology and good management skills are participating, creating increasingly fierce competition in a common, equal playing field.
Vietnamese transport construction enterprises that want to stand firm and develop sustainably in the market need to have the right strategic orientation as well as optimal use of resources. To do that, each enterprise must build for itself a flexible and effective management accounting information system to analyze, process and provide important information in the process of planning business strategies and effectively control the operation process to ensure good implementation of the set goals. So what are the evaluation criteria and factors that affect the management accounting information system in transport construction enterprises?
1. Evaluation criteria for management accounting information systems in traffic construction enterprises
In the management of transport construction enterprises, information is a resource and an asset that plays an increasingly important role. In which, management accounting information is one of the important tools for management and decision making. To ensure the information needs of managers in making the right decisions on short-term business plans and long-term business strategies, the management accounting information system must ensure that the quality of information provided is at a high level. A management accounting information system is considered complete if it meets the following criteria:
- Ensure completeness of information : Build a complete reporting system, summary indicators and detailed indicators necessary for business management, cost management, risk management, and determining the business efficiency of each construction department, each item, and each project.
- Ensuring the timeliness of information : As a special economic sector that is affected by the natural environment, construction terrain, etc., management accounting information in traffic construction requires a relatively high level of timeliness. For example, seaport construction projects affected by tides or construction projects during the rainy season need to be provided with timely information on construction progress for managers to analyze and consider production management decisions, etc. In general, the periodic preparation of management accounting reports for traffic construction enterprises will be more flexible to ensure that managers' information needs are met.
- Ensure honest and reasonable information : Management accounting information needs to be honest and reasonable so that the unit's leadership knows clearly the strengths and weaknesses of their own unit, accurately determines the performance of each construction team and group to serve the decision making of effective construction organization structure.
- Ensuring efficiency : That is, the information must be complete, timely, honest, and accurate, but the cost of obtaining information must be reasonable, not costly in terms of time and material costs in collecting, processing, and providing information. Investors require traffic construction enterprises to not only ensure safety during construction, ensure quality and construction progress, but also have reasonable prices and demonstrate competitive prices in the construction market.
2. Factors affecting management accounting information systems
There are two groups of factors affecting the management accounting information system: internal factors and external factors of the enterprise.
Internal factors of the business
First, the awareness of the Board of Directors: To complete the management accounting information system well, the first influencing factor is the awareness of the board of directors at all levels of the enterprise. If the board of directors is aware of the importance and role of the management accounting information system, the construction and completion of the management accounting information system will be effective and of good quality. Because the information from the management accounting information system directly serves the board of directors of the enterprise to make decisions on production and business plans, and plan the business strategy of the enterprise. Therefore, right from the stage of determining the information needs, the board of directors of the enterprise needs to grasp the business performance of each department, each construction team, which project, which construction brings more or less benefits to the enterprise will affect the decision on organizing the management accounting information system.
Second, the capacity and sense of responsibility of the staff: With the characteristics of dispersed production and business activities, the production site is also the place of consumption, so the ideas and requirements of business leaders on the management accounting information system need to be specified by a system of indicators and implemented by the staff of the business. The staff need to have enough knowledge and skills to ensure that from the stage of collecting information from projects, works, entering data into the information system to processing data, building the management accounting system must ensure consistency, accuracy, completeness, and timeliness for the management accounting information system. In the process of developing the management accounting information system, updating new knowledge and skills for staff, especially those working directly at construction sites, also contributes to improving the effectiveness of the management accounting information system.
Third, information technology platform: management accounting information system can only be applied in enterprises that have an information technology system that has reached a certain level: a centralized (online) management information technology system throughout the enterprise. For enterprises whose information technology system is not yet developed, dispersed, and not processed online, even if they want to, they cannot effectively deploy a management accounting information system. Along with the information technology system, centralized data management requires enterprises to have the financial resources to build the system.
Factors outside the business
First, the competition between traffic constructions: The decisive factor for the success or failure of each enterprise in the market depends on the business strategy and the allocation and use of resources appropriately and effectively. The management accounting information system is a powerful tool serving the management of internal operations of each enterprise, so there are often no common standards. Therefore, each enterprise needs to invest a lot of time and resources to build, consolidate and perfect the management accounting information system that is specific to the production and business activities of the enterprise. Each enterprise must keep and build its own information to make decisions to gain many advantages in the market, the most important of which is the information from the management accounting information system. Therefore, no enterprise can easily transfer the experience and technology of the management accounting information system to another enterprise.
Second, the legal system: the legal system has the effect of guiding enterprises to build and perfect the management accounting information system. For enterprises that have built a management accounting information system, it is necessary to complete it more fully. For enterprises that do not have a management accounting information system, there is a direction to focus resources on building it. The management accounting information system brings high efficiency to each enterprise, which also means making the country's economy more and more developed. Therefore, a fully oriented legal system will help enterprises quickly approach and complete the implementation of the management accounting information system.
In short, in today's increasingly competitive business environment, in order to survive and develop, enterprises in general, and transport construction enterprises in particular, need to build a management accounting information system to make the most of their available resources on the basis of effective resource allocation and good management of possible risks. Therefore, researching, developing criteria and properly assessing the level of influence of factors on the management accounting information system is a mandatory task for each transport construction enterprise, creating for each enterprise an effective tool for management and operation, making the right decisions to achieve the ultimate goal of safety and profit./.
1. Nguyen Ngoc Quang (2011), ' Business management accounting' , National Economics University Publishing House
2. Tran The Nu (2013), ' Building a cost management accounting model in small and medium-sized commercial enterprises in Vietnam' , PhD thesis in economics, National Economics University, Hanoi.
3. Hoang Van Tuong (2011), ' Organizing management accounting to enhance business management in Vietnamese construction enterprises' , PhD thesis in economics, National Economics University, Hanoi.
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