MANAGEMENT REPORTING AS A TOOL FOR CORPORATE GOVERNANCE AND CONTROL

Abstract

This article covers the issues of the role of management reporting as a tool for corporate governance and control and defines the main approaches to the formation and implementation of management reporting at an enterprise, since nowadays, the issues of setting and maintaining management accounting are becoming increasingly practical in the activities of organizations, the result of which is the formation of management reporting, which is an ideal information base for making appropriate management decisions. The author focuses on the importance of management reporting at the enterprise, which allows for an overview of all activities, automation of management accounting, regulation of interaction between the information system and users, which significantly increases the effectiveness and quality of decisions made by management and has a direct impact on the effective and sustainable activities of the organization especially in the context of the digitalization of the economy. It was also noted that the information content of management reporting, from the point of view of the most important aspects of the organization's activities, is expanding more and more, as the needs of users for information grow, and there is also a desire to match management reporting to the formats of the best world practices. It is proved that the reporting formed in the management accounting system, including strategic accounting, creates an information base, based on which managers make appropriate management decisions focused on the development of an economic entity. Management reporting, along with accounting and tax reporting, form a full-fledged accounting and analytical support for managing the economic development of an organization. It has been determined that the use of management reporting at the enterprise will allow managers of the organization to perform the following functions: summarize intermediate results for all areas of the enterprise; analyze the efficiency of the enterprise in the current conditions; constantly monitor the development of the enterprise. Data from this type of accounting is an important information base for making strategic decisions. The use of management reporting helps to quickly respond to changes in the external environment and contributes to the rapid adaptation of the enterprise in the face of economic changes.