Accounting and Controlling Services
For a long time, financial accounting departments, responsible for reporting to external stakeholders, and management accounting and controlling departments, responsible for reporting to the management, worked more or less independent from each other. Financial accounting was dealing with detailed legal requirements for tax purposes, for creditor protection, and for internal and external shareholders, whereas the main focus for management accounting was to provide information about the “real” situation of the company, independent from any financial statement policy for tax or shareholder purposes. Moreover, financial accounting did not present results very frequently, and not too detailed - often, only one set of financial statements for the whole company, not separated for the different sectors or product lines the company was active in, was produced only once a year – and even this only after a couple of months when the year reported about was long over. Management, on the other hand, needed detailed information frequently and fast, in order to use this information for their decision-making process – daily turnover figures, monthly profit center results, or weekly cash statements are typical instruments in this field.
Starting in the 1990, trends in accounting changed. IFRS (International Financial Reporting Standards) and IAS (International Accounting Standards), defined by an independent entity, and intended to serve all potential stakeholders, continuously gained popularity, and were used in an increasing number of countries. Within the next years, it is even expected that the second relevant set of accounting standards, GAAP (Generally Accepted Accountings Principles) used especially by the SEC (Securities and Exchange Commission) in the United States, and IFRS will converge into only one set of “world accounting standards”. These developments are slowly reflected in Turkey by the planned introduction of the Turkish Accounting Standards (TFRS / TMS), which are mirroring the IFRS standards.
With this development, it becomes possible to align financial and management accounting into one single system, without any significant differences between the figures used for one or for the other purpose. Financial accounting standards now require the reflection of a true and fair view of the company – the same requirement the management has. Financial statements are to be produced more often, and fast, therefore becoming more decision-relevant and useful for the management. And last not least, an extensive framework for the treatment of special business transactions, like for financial instruments, exists, which is relevant for both external and internal accounting purposes, and which effects has to be reflected both in external and in management accounting both for the balance sheet and for the income statement.
Targeting the alignment of financial and management accounting, BIC can provide support in the following areas:
Financial Accounting
- Standardization of the chart of accounts
- VUK accounting and reporting
- IFRS accounting and reporting
- TFRS/TMS conversion
- Formation or re-design of financial accounting processes in order to comply with IFRS, TFRS or TMS
- Intergroup transfer pricing
- Legal and management consolidation systems and processes
- Reporting solutions
- ERP software selection
Management Accounting and Controlling
- TFRS/TMS-based management accounting systems
- Formation or redesign of the profit and cost center structure
- Cost accounting solutions
- Product costing
- Determination of cost allocation principles and methods
- ABC (Activity-Based Costing) systems,
- Management accounting and reporting solutions
- Project costing and controlling systems
- Budgeting solutions
