The management balance sheet is a balance sheet of assets and liabilities of an enterprise, compiled for accounting purposes. It differs from the balance sheet in that items of assets and liabilities, while maintaining the logic of financial reporting, are presented so that they can be analyzed from the point of view of operational and short-term management of the enterprise. That is, the items of the traditional balance sheet have been reformatted, but at the same time the principle of balance between assets and liabilities remains unshakable. How to draw up a management balance sheet?
Instructions
Step 1
First of all, give answers to the following questions: why do you want to draw up a management balance sheet, who will be its user, what issues need to be resolved using this type of management reporting. Remember that the preparation of any report takes time, so decide on the frequency and timing of the management balance sheet.
Step 2
Compile or receive in the accounting department a ready-made balance sheet at the end of the period preceding the planned one.
Step 3
Divide the assets and liabilities of the management balance sheet by type of activity:
- main (activities that generate the main income), - financial,
- investment.
Step 4
"Tie" balance sheet items to the types of activities. For example: fixed capital - investment activity, includes both assets (fixed assets) and capital and liabilities (investments). Working capital - associated with core (operating) activities, includes current assets and current liabilities.
Step 5
Compare the highlighted items of balance with each other. Schedule exactly what financial indicators are needed for analysis in your particular enterprise. Adjust the management balance sheet to suit your management reporting needs.
Step 6
Make a planned balance sheet for the period adopted by other forms of management accounting. At the end of the period, draw up the actual management balance sheet, analyze deviations and their causes. Schedule measures to eliminate the causes of negative deviations from planned indicators. The figure shows the approximate management balance sheet of the enterprise. This sample only shows one of the options for compiling a management balance sheet and is not indicative for absolutely all enterprises. But, perhaps, this pattern will tell you exactly which direction to move you.
