Accounting, analysis and control of consulting services at LLC “BDO Centers”

Students Name: Titova Sofiia Kostiantynivna
Qualification Level: magister
Speciality: Accounting and Taxation
Institute: Institute of Economics and Management
Mode of Study: full
Academic Year: 2020-2021 н.р.
Language of Defence: англійська
Abstract: Titova S.K., Voskalo V.I. (supervisor). Accounting, analysis and control of consulting services at LLC “BDO Centers”. Master’s qualification work. – Lviv Polytechnic National University, Lviv, 2020. Extended abstract Consulting means giving advices to executives, managers on a wide range of issues in the field of financial, commercial, legal, technological, technical, expert activities. The reasons for the growing popularity of consulting, increasing demand for consulting services include increased competition, globalization of the economy, development and introduction of new information technologies, rapid business development that requires consulting services and others. The object of the master’s qualification work is the process of organization of accounting and control of consulting services, in particular at the Limited Liability Company (LLC) "BDO Centers", and their analysis. The subject of the study is a set of theoretical, methodological and organizational components in the process of accounting, analysis and control at "BDO Centers" and at the enterprises in Ukraine in general. The purpose of writing a master’s thesis is to study, generalize and systematize the theoretical provisions and practical aspects of accounting, analysis and internal control of consulting services, development of ways to improve and optimize the selected object. LLC "BDO Centers" provides consulting services in the field of marketing, auditing and taxation. LLC "BDO Centers" is a subsidiary of the German corporation BDO Auditing Company, headquartered in Hamburg, Germany. This company, in turn, is a part of BDO Global, which is a network of companies that are independent legal entities and operate around the world. The analysis of the main financial and economic indicators showed that during the analyzed period the financial condition and results of the enterprise have significantly improved. There was an increase in net revenue from sales of services, total assets, equity, net income and profitability of services. The results of the SWOT analysis of LLC "BDO Centers" revealed that the strengths far outweigh the weaknesses, which is a positive factor for the future development of the company. The biggest advantage of the company is the economic advantage in purchasing outsourcing services for customers of the BDO network due to cheaper skilled labor and lower tax burden in Ukraine. On the other hand, since other companies of the BDO network are the only customers of the company, this makes LLC "BDO Centers" largely dependent on the financial condition and business activity of these companies. To account for revenue from the provision of consulting services LLC "BDO Centers" uses sub-account 703 "Revenue from the sale of works and services". The credit of sub-account 703 reflects the received (recognized) revenue from the provision of services, the debit – the amount of write-off of net revenue to account 79 "Financial results" (sub-account 791 "Operating results"). Based on the results of the study, examination of regulations and scientific papers [2-7], recommendations for improving accounting and analytical work at the company were done. In order to increase the effectiveness of accounting policies, it is proposed to make changesBased on the results of the study, in order to improve the accounting policy, it is proposed to amend the current Accounting Policy Order and supplement it with items related to income recognition and determining the degree of completion of transactions and defining the list and composition of items for calculating production costs, the list and composition of items of overhead costs, , as well as items that define as a basis for the distribution of variable distributed overhead costs the wage expences, included in the production cost. Given the existence of the company’s three main centers of revenue, it is proposed to separate them in accounting, in particular to provide in the Order on accounting policies and the working chart of the company’s accounts the relevant sub-accounts. To assess the effectiveness of LLC "BDO Centers", it is proposed to use a system of indicators that takes into account the strategic goals of development in the field of finance, marketing, operational excellence, etc. Key words - consulting, consulting services, revenue, expenses, financial results, accounting, internal control, analysis. References. 1. Atamanchuk, Yu.M., Guzar, B.S, & Shupilo, O.V. (2015). Problems of formation and functioning of the market of consulting services in Ukraine. Bulletin of the Kyiv Institute of Business and Technology, 3, 3-7. 2. Verba, V.A. (2012). Conceptual provisions for the evaluation of management consulting. Efficient economy, 1. - Access mode: http://nbuv.gov.ua/UJRN/efek_2012_1_12. 3. Dankiv, Y.Ya., Makarovych, V.K. (2017). The efficiency of the enterprise: analytical aspects. Accounting and Auditing, 6, 30-40. 4. Kondratyuk, S.M. (2018). Accounting and control of consulting services. Young Scientist, 1, 616-620. 5. Kuznetsova, I. (2018). Technology of diagnosing management consulting projects. Scientific Bulletin of Odessa National Economic University, 1, 97-108. 6. Pylypenko, L., & Tyvonchuk, O. (2020). Development of methods of forming management accounting in the system of corporate governance. Institute of Accounting, Control and Analysis in the context of globalization, 0 (2), 61-70. 7. Firko, N.B., Kainak, J.V. (2013). Accounting for revenues and results of main activities by the centers of responsibility. Bulletin of the Lviv Commercial Academy, 10 (4)., 340–347.