The essence of management accounting and its place in the information system of an economic entity

At the present stage of economic development, the role of management accounting in ensuring the effective functioning of organizations is increasing. There are many approaches to interpreting the essence and content of management accounting and determining its place in the information system of an economic entity, however, the need for new research is increasing due to dynamically changing economic conditions, growing competition and changes in legislation, digitalization and technology development. The purpose of the study is to analyze various approaches to interpreting the content of management accounting and determining its place in the information and accounting systems of an economic entity, identify the shortcomings of the definitions studied and propose an author’s definition of the term “management accounting”. The theoretical and methodological basis of the research was the works of domestic and foreign scientists in the field of management accounting. The following research methods were used: comparative analysis, systematic approach, generalization. Popular Western approaches are described: K. Drury, who considers managerial accounting as a subsystem of accounting, and A. Upchurch, who believes that financial and managerial information are combined in a single managerial information system, as well as a narrower Russian approach, which interprets managerial accounting as accounting for costs and financial results. The paper highlights the shortcomings of the definitions studied by foreign and Russian scientists and suggests considering managerial accounting in two interrelated aspects: as a continuous process integrated into the management system and accompanying all stages of the management process and as a specialized information system providing the management and owners of the company with financial and non-financial information for making managerial decisions. Thus, at the present stage, management accounting is a dynamically developing integrated system that covers all elements of management of an economic entity (planning, accounting, control, analysis, regulation), using a variety of methods typical of accounting, mathematical modeling, economic analysis and statistics, and aimed at substantiating decision-making and evaluating their effectiveness.