Managerial expenses

Management expenses are necessary for the management of the organization of funds, which are part of the current costs of the enterprise and affect the formation of production costs.

In accounting, administrative expenses reflect the debits of general economic expenses. They can also be considered as periodic expenses that are not related to the production process, but are necessary to maintain the property and financial complex of the enterprise in the reporting period. In this case, they are attributed to operating expenses, or - to the company's losses.

Administrative expenses include salaries and bonuses for management personnel, travel expenses, postal and office expenses, transportation, maintenance of administrative buildings, depreciation costs, office maintenance (rent, utilities, communications), third-party services (insurance, legal, audit) Etc. Wages are determined according to the staff schedule, office and postal expenses are 2-3% of the salaries of management personnel. Costs for maintaining buildings are calculated in the same way as shop costs (electricity, water, heating). For current repairs, 3% is allocated, equipment - 7% of their cost by balance. Depreciation charges equal to 6.5% for plants and 6.1% for workshops against the cost of fixed assets for administrative purposes.

The budget of expenses for management of the enterprise is precisely calculated to ensure its normal functioning. Management costs are planned in several ways. The first (traditional) - provides for limiting this type of expenditure by a percentage of the salary fund of the main staff. The second ("from achieved") - is based on the annual indexation of the level of expenditure according to the rate of their growth over the period. It is also possible to plan in conjunction with the final result of the activity. This method is the most effective, but unlike the Western countries in Russia is practically not used.

In many firms, management costs are stretched for several months. Developing a reliable budget - the event is quite labor-and time-consuming, because when it is agreed upon, quite a lot of participants are involved.

Management costs directly from the main (production, commercial) activities of the enterprise are not related. However, in accounting, they are reflected in the debit of general economic expenses accounts. If the accounting policy of the enterprise allows to include such expenses only partially in the cost price of its products, then it is allowed to write off them using certain postings.

Administrative costs are planned in a separate budget, do not have a link to the volume of production or sales, are calculated regardless of the dynamics of the company's income. Most of these costs are limited costs. They are divided into expenses, tied to business assets, and the costs associated with its development. The first group includes such items as depreciation, expenditure on equipment maintenance, lease payments, etc. They are planned in conjunction with the cost and life of fixed assets. The second part (the salaries of managers and other specialists, engineering and management personnel, their representative, travel, transportation and other expenses) are planned individually for each company.

Administrative expenses must be documented without fail. Such documents are payment orders, receipts, cash receipts. Without these documents, the organization does not have the right to take into account management expenses for taxation.