L. Rangelova
Thursday 28 September 2017 by Libadmin2017

References: 4th International Multidisciplinary Scientific Conference on Social Sciences and Arts SGEM 2017, www.sgemsocial.org, SGEM2017 Conference Proceedings, ISBN 978-619-7408-17-1 / ISSN 2367-5659, 24 - 30 August, 2017, Book 1, Vol 5, 59-66 pp, DOI: 10.5593/sgemsocial2017/15/S05.008


Adequate administration of the bank requires management not only to know well the financial status of the institution, but also to plan and control the operational processes and to take managerial decisions about the efficient allocation and utilization of the available resources.
New requirements are set up aimed at provisioning of information in the bank management system, but also new challenges arise in relation to the accounting and information process for budget planning, accountability and control in order to properly interpret the achieved results and to take informed managerial decisions.
The paper focuses on the need for a well-built internal budgeting and reporting system that reflects the actual state of the bank, the achievement of budget targets and the analysis of deviations. Through a "planned versus actual values" type of control, the performance of the separate business units is evaluated by product lines and client segments, and communication between the different managerial levels is provided.
Methodological issues of the cost accounting are considered, as well as matters of income and expense measurement, budgeting, budget control, responsibility centers analysis, segment reporting and funds transfer pricing in the banks. A methodology is proposed for setting up and utilization of reporting (a specific database, including internal company reports) for a proper interpretation of the results in managing the commercial banks’ activities.
With the intention of a more practical application of the paper, separate theoretical layouts are illustrated with formats of internal company reports and particular data. These reports have to be generated in real time and with variable frequency and to cover both the current state and the future development of the commercial bank, in order to satisfy the information needs of the various levels of management within the bank.

Keywords: bank institution, management accounting, budgeting, reporting, performance measurement