DIGITAL INTEGRATION OF FINANCIAL AND MANAGEMENT REPORTING IN THE INTERESTS OF STAKEHOLDERS
DOI:
https://doi.org/10.15330/apred.1.21.359-368Keywords:
digitalization, accounting accounts, integration, financial reporting, management reporting, electronic reporting, software solutions, stakeholdersAbstract
The article reveals approaches to the digital integration of financial and management reporting in the context of growing stakeholder information. The article reveals approaches to the digital integration of financial and management reporting in the context of growing stakeholder information requests. It is proven that the traditional distinction between financial and management reporting does not allow to fully provision of relevant, holistic, and analytically rich information necessary for making informed management decisions and ensuring business transparency. The need to form a single accounting and analytical space in which financial and management information are consistent and complement each other is substantiated.
It is proposed to develop the domestic accounting chart of accounts, in particular by expanding the functional purpose of class 8 in the direction of detailing and analytics. It is proposed that the vertical integration of financial and management accounting accounts be implemented by opening various types of analytical sub-accounts of a lower order to synthetic accounts in accordance with the information needs of business management. In turn, horizontal integration of accounts is recommended to be implemented by forming correspondences of accounts of classes 1-7 and 9 of financial accounting and accounts of class 8 intended for management accounting needs. This approach will allow generating the necessary information accordingly for specific target requests of business management and its key stakeholders. The combination of financial and management accounting accounts in the conditions of vertical and/or horizontal integration is characterized by positive features, since it allows for implementation in the activities of various economic entities and for any information needs of management, as well as the possibility of automating accounting processes using specialized software technologies, which prevents the increase in the labor intensity of accounting work. In this context, the role of digital technologies in implementing the process of integrating types of reporting, increasing the reliability of information, automating accounting procedures, and adapting reporting data to the requirements of different user groups is highlighted. The advantages of digital reporting integration to ensure sustainable development, effective communication with stakeholders, and improved the quality of management decisions are summarized.
References
Maksymiv, Yu., et al. “Rethinking the essence of management accounting in the context of achieving Sustainable Development Goals.“ Finance of Ukraine, vol. 1, 2023, рр. 117-128, https://doi.org/10.33763/finukr2023.01.117.
Bezkorovayna, L.V. “Interconnection of information flows of management and financial accounting for the effective functioning of the enterprise accounting system.“ Global and national problems of economy, vol. 14, 2016, рр. 896-901.
Brukhansky, R. and Spilnyk, I. “Digital accounting: concepts, origins and current discourse.“ Institute of accounting, control and analysis in the context of globalization, vol. 3-4, 2020, рр. 7-20.
Hevlych, L., and I.Hevlych. “Financial and management reporting of domestic enterprises.“ Economics and management organization, vol. 1(37), 2020, рр. 49-59.
Kutsyk, P.O. “Development of integrated accounting methodology in the context of corporate information systems.“ Bulletin of ZhDTU, vol. 3 (53), part 2, 2010, рр. 140-142.
The Verkhovna Rada of Ukraine. Chart of accounts for accounting, zakon.rada.gov.ua/laws/show/z0892-99#top. Accessed 05 May 2025.
Semchuk, I.V. “Financial and internal reporting as sources of information about the obligations of the enterprise.“ Bulletin of ZhDTU, vol. 3(61), 2012, рр. 165-168.
Spivak, S.M., et al. “Features of reporting by enterprises in the digital economy.“ Galician Economic Bulletin, vol. 91(6), 2024, рр. 87-94.
Shkromyda, V., Shkromyda, N., and I. Kuzyshyn. “International initiatives for the development of integrated business reporting.“ Sustainable Development of the Economy, vol. 2(49), 2024, рр. 153-156, https://doi.org/10.32782/2308-1988/2024-49-24.
Downloads
Published
How to Cite
Issue
Section
License
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution NonCommercial NoDerivs 4.0 Unported License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access)
