Building a Modern Financial Model of Company Management

摘要

During some years, many original and interesting papers devoted to the issue of property management were published. However, there is an acute shortage of works devoted to the system of accessing models for cost-effectiveness analysis. The most researchers adapt a certain method to assess the market value, for example, discounting of cash flows to real management process, or choose of a key performance indicator of the enterprise from the position of cost management. According to the author, when building a financial management model, it is necessary not to look for a single indicator of efficiency, but develop a system of criteria to assess such efficiency. The more capacious and general these criteria are, the less dependent the management system will be on the subjectivity of the decision-maker. The model should limit the ability of management to manipulate basic accounting values. The model should possess a normative or standard development model of the company, which would be able to ensure an increase in its cost growth. Within the framework of this model, it proves the pivotal importance to adjust the budgets of the company in varying market environment. Budget planning enables to solve the tasks of current management because even in the case of budget execution, the company can reduce its cost. The budget itself does not give answers to questions about whether the company's level of profitability, the growth of its revenues, etc., is sufficient or not. At the same time, the model of making decisions based on the criterion of cost can give a response to the shareholders on these issues when the budget is approved in any economy.