Management is an art or a fulfillment of established processes.
Nowadays, all organizations and in the particular case of those dedicated to agriculture, currently face a great deal of uncertainty, which comes from external coercions and situations imposed by the environment in which they operate.
Therefore, the more turbulent the environment becomes and the more uncertainty increases, the more the risk in business grows, that is why it is very important to have a structure plan for all the processes in this type of organizations and that it is fully complied with in order to aspire to transcend in time, although it is clear that it can be improved by abrupt changes in the world's economic, administrative and financial processes.
Based on the above, we can affirm that today there is a very complex and also very competitive world that is demanding much more energy and disposition of the organizations so that they can be proactive and be able to face the variety and great difficulties that this new world business order imposes, for which it is determinant and fundamental that the management processes of the financial information are as accurate as possible, in order to maintain the best competitive advantages in the markets in which they operate, as well as to look for new ones.
Within this framework, accounting plays an important role in the success of any organization by providing the best use of its economic resources and thus seek the highest profitability that allows them to be able to make investments for the established goals.
That is why the preponderant role played by the management processes for the development and expansion of the organization are so necessary that otherwise it will always be stagnant and almost in the want of not using them in the right way and form.
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Accounting's main role is purely functional, to record business transactions and ensure compliance. Optimisation of resource allocation and investment decisions in a finance function. The two are related but very different.
In your opinion, how do you think accounting can contribute to management decision making to counteract the complex and uncertain environment you alluded to? And in particular, what are the best management processes applicable to an agricultural organisation so they can overcome the external coercions you mentioned?
greetings @livinguktaiwan _
The primary function of accounting is to provide information to internal and external users.
How do you think accounting can contribute to managerial decision making to counteract the complex and uncertain environment you allude to?
Through the analysis of the Financial Statements called Statement of Situation, where we can see the goods and rights that the companies have as well as the debts and obligations that they have with their patrimonial movements from one year to another.
And also with the Income Statement where we can see the movements of the real and nominal accounts that allow us to make adjustments or changes in administrative, operational, financial and fiscal policies.
What are the best management processes applicable to an agricultural organization so that it can overcome the external constraints you mentioned?
Undoubtedly, the management processes in agricultural companies go from the initiation of their processes to the exit of the same, that is to say, each administrator or manager must be guarantors and always look for the improvement of each agricultural and livestock process, where to improve, what new products to use that are more efficient and effective so as not to contaminate the soil, among others.
If we go to the financial part, how to counteract inflation for the purchase of products, that is to say, to value quantitatively if it is more profitable to buy it in their country or import it, since they must keep in mind the operating expenses for its purchase and implementation in their production unit.
Also if they are using correctly their operative processes and manpower, all these are immersed in analysis to have a good process management.
To conclude we can say that it is the excautive evaluation of its beginnings, passing through the transformation and final result of all operations.
I hope to be able to answer your questions, we are at your service.
Maybe I'm a bit slow here, could you break it down and explain in layman terms please? Rather than text book quotes. thanks
Greetings, When applying a correct accounting complying with all the rules and regulations of the matter, where each and every one of the operations carried out by the companies are recorded, these (managers and owners) can through the Financial Statements, make decisions that go towards improving processes as they can apply indexes such as profitability, liquidity, working capital among others,
The financial statements allow you to show where there was more incidence or movements of the accounts at any time of the economic period.
Also in the management processes, it can allow you to evaluate all the processes carried out by the company from the beginning to the end in order to improve it or make a new one for being inefficient for the company.
it was the simplest thing I could explain to you
I'm a qualified accountant so I know what financial statements are and what they do. I also have an MBA so I know the outcome of successful management processes.
What I was specifically after was the applications of them with regards to the situations you mentioned in your post. Specifically:
Your answers above didn't address any of these situations, you just gave me standard textbook answers in both of your comments
Well, I apologize if my answers were not satisfactory. I am a graduate in administration with a mention in banking and finance and I also studied economics.
My comments were written from the knowledge I have on the subject.
You write very detailed topics in accounting, I thought you were an expert. So it's all basic textbook stuff with no insight or analysis