Home  Journals  International Accounting  33(375) - 2015 September

Decentralization of the accounting process as a radical method for improving the corporate accounting practice

Received: 27 October 2015

Accepted: 30 October 2015

Available online: 15 December 2015

Subject Heading: TRANSFORMATION OF NATIONAL REPORTING

JEL Classification: 

Pages: 24-36

Importance The article focuses on paths of corporate accounting improvement to avoid double and concurrent processes.
     Objectives The research substantiates the need to decentralize the accounting process and leave the financial reporting process only; demonstrates that the accounting department duplicates accounting processes.
     Methods The research draws upon a systems approach, since the corporate accounting practice was regarded as a unity of all the components. Using the functional approach, I examined functions of the system components, while the process-based approach helped me identify optimization items represented with accounting processes. I also applied the methods of logic and historical unity.
     Results I elaborated a cost accounting system, which delegates primary accounting and summarizing of costs to departments, while the accounting department is responsible for control, supervision and preparation of financial statements in terms of cost recognition.
     Conclusions and Relevance The findings can be used to give classes of accounting as an alternative teaching approach. It also may prove useful as the basis for further research into decentralized cost accounting or the contemporary accounting concept in activities of the regulator.

Keywords: operational accounting, accounting, accounting process, decentralization

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