Management accounting in 1C: what it is and why businesses need it

Imagine: you are the head of a company, you have an accounting department, reports are submitted on time, taxes are paid. But you can't answer simple questions:

• Which department brings more profit?
• Should I open a new business?
• Why is there not enough money in the till when revenue is good?
• Which clients are the most profitable?

If these questions are familiar to you - then you need management accounting.

Difference between accounting and management accounting

Accounting shows what happened - what income was earned, what expenses were incurred, how much tax was paid.

Management accounting shows what is happening now and what will happen - which areas are profitable, where you can save money, how to achieve your goals.

If accounting is a story for the tax authorities, then management accounting is a navigator for the manager.

Why a business needs management accounting

You get answers to key questions:

About profitability:

• Which products/services are more profitable?
• Which customers are profitable and which are unprofitable?
• Should I expand a certain line of business?

About the costs:

• Where can costs be cut without compromising quality?
• Which cost items are growing fastest?
• Is there a return on investment in marketing?

About Planning:

• Are the goals achievable?
• Will there be enough money for the planned projects?
• When to expect a return on investment?

Specific benefits:

• Make decisions based on facts, not intuition
• See problems before they become critical
• Plan a budget and monitor its implementation
• Motivate staff with clear metrics
• Find reserves for profit growth

Management accounting in 1C:Company Management

What the programme can do:

Profitability Analysis:

• For products and services
• For clients and projects
• For regions and managers
• For time periods

Budgeting:

• Income and Expense Planning
• Budget Execution Control
• Analysis of Deviations from Plan
• Cash Flow Forecasting

Accounting by centre of responsibility:

• Every department sees its performance
• Managers are accountable for their results
• Transparent incentive system

Project Management:

• Resource and Time Planning
• Task Monitoring
• Project Profitability Analysis
• Employee Time Management

Reports that will change the way you look at your business:

• "Profit and Loss" - see where money comes from and where it goes
• "Cash Flow" - understand why there is no money when there is a profit
• "Sales Analysis" - know which products to sell more profitably
• "Budget-to-Fact" - monitor the fulfilment of plans
• "Profitability" - identify the most profitable areas

Why management accounting doesn't work without automation

Challenges of manual accounting:

• Too much time to collect data - by the time you collect the information, it will be outdated
• Errors in calculations - human error is inevitable
• No timeliness - reports are ready only at the end of the month
• Difficult to analyse - no clear graphs and charts
• No detail - impossible to quickly find the cause of the problem

Advantages of automation in 1C:

• Data is updated in real time
• Reports are generated automatically
• You can drill down to any indicator
• Clear graphs and charts
• Predictive capability

Integration with other systems

Ready-to-use exchange with 1C:Accountancy

What it means:

• Data from management accounting is automatically transferred to accounting
• No need to enter information twice
• Eliminates data transfer errors
• Management and accounting always synchronised

Integration with the website

We'll set up the data exchange:

• Orders from the site are automatically entered into 1C
• Product inventories are updated in real time
• Prices are synchronised automatically
• Customer base is merged

Shopify integration

For online retailers:

• All orders are automatically imported into 1C
• Manage warehouse balances from one system
• Unified database of customers and goods
• Automatic generation of documents

Other integrations

On request, we will set up an exchange with:

• CRM-systems
• Document management systems
• Bank-client
• Cash programs
• Analytics systems

How we implement management accounting

Step 1: Analysis and planning

• Learn the specifics of your business
• Define key metrics to monitor
• Customise your analytics structure
• Plan your accounting processes

Step 2: System Setup

• Install and configure 1C:Company Management
• Customize directories for your business
• Create responsibility centres
• Customize budgeting

Step 3: Integration

• Customise exchange with 1C:Accounting
• Integrate with website/Shopify (if necessary)
• Customise other data exchanges
• Test all processes

Step 4: Staff training

• Teach managers about reports
• Show how to analyse data
• Teach operators how to input information
• Explain decision-making algorithms

Step 5: Support and Development

• Technical support during the mastering period
• Adjusting settings as needed
• Add new reports and analytics
• Regular consultations on usage

How much time is needed for implementation

Standard implementation: 2-4 weeks

Complex implementation with integrations: 1-2 months

Full staff development: 1-3 months

Important: You will receive the first management reports in a week after the start of work.

Payback on management accounting

Direct Savings:

• Identify unprofitable areas
• Optimise costs
• Improve receivables handling
• Reduce stock balances

Indirect savings:

• Fast and informed decisions
• Motivating staff for results
• Crisis prevention
• Business development planning

Average payback: 3-6 months

Standard package includes:

Licence:

• 1C:Company Management for Moldova - 10500 MDL

Implementation (10 hours): 450 EUR

• Customisation of 1C:Company Management for Moldova
• Customisation of automatic data exchange
• Training of personnel to work in the system
• Testing and launching

Frequent objections and answers to them

‘We have a small company, we don't need management accounting’

Answer: The smaller the company, the more important every decision is. A mistake can cost the business.

‘It's too complicated for our employees.’

Answer: We teach how to use the system. Modern interfaces are intuitive.

‘It's expensive to buy another programme.’

Answer: Management accounting is an investment that pays for itself in the first few months.

‘I already understand everything about my business.’

Answer: Intuition fails. Facts and figures are more reliable.

Что вы получите, работая с нами

• Comprehensive solution - from needs analysis to full implementation
• Professional configuration - the system will work exactly for your business
• Prepared integrations - with accounting, website, Shopify and other systems
• Technical support - we will solve any issues quickly and efficiently
• Full training - your team will work confidently with the system
• Customised reports - we will create analytics tailored to your needs
• Growth support - the system will grow together with your business

Start managing your business professionally

Management accounting is not a luxury, but a necessity for any serious business. The earlier you start, the more growth opportunities you'll get.

Contact us for a free consultation. We'll show you how management accounting in 1C:Company Management will change the way you approach your business and help you make the right decisions.

Manage with facts, not assumptions. We'll help you organise it.