ROLE OF BALANCED SCORECARD IN ACCOUNTING

The importance of the issue is directly related to continuous development of the country economy that is followed by the process of changing in business environment of an enterprise, growth of competition as well as complication of accounting and financial analysis. Constantly increasing sources of information define the problem of its irrational use, and leads to difficulties of business leaders in decision-making. Assessment of the financial efficiency of the company can be obtained through a small number of fundamentally important indicators combined in one group, whereas most organizations keep calculating and analyzing a huge amount of indicators. Formation of the optimal number of indicators for analysis and evaluation of financial performance of the company is an important issue, as they allow you to obtain reliable information about the activities and financial condition of the company through the economic analysis.

The article reveals the essence and contents of the balanced indicators and their role in management of enterprise performance, since by observing the dynamics of change in this system it is possible to estimate the progress of the enterprise towards the overall development strategy. The efficiency of the company is traditionally determined by the financial indicators derived from accounting systems. This approach does not provide a complete picture of the condition of the company, does not allow to make an accurate forecast of its development. Therefore, more sophisticated and effective ways to evaluate the business are necessary. The paper presents the main stages of the Balanced Scorecard process in the company, verifies the special role of management accounting and budgeting in the balanced scorecard which is in close relationship of all components, and formulates what indicators and at what level are taken in the development of a balanced scorecard and how they should be shown in management accounting and budgeting system.