Sales in social networks

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The first step in building management accounting is to study the specifics and structure of the business. There are no identical organizations, they are all individual, just like people. Distinctive features of businesses are forms of ownership, scale, internal processes, unique selling propositions and other factors.

Large and medium-sized online stores have departments in their structure that are responsible for performing certain functions. In management accounting, such divisions are called financial responsibility centers (hereinafter referred to as FRC). Each FRC contributes to the organization's final result and ensures sales volume, maintains inventory balances in the warehouse, delivers goods to customers on time, etc. In other words, they are responsible for achieving their target value. Building such a financial structure is the first step in implementing a budgeting system based on delegation of responsibility.
The following main CFOs are distinguished:
Revenue center. These are the departments that are directly responsible for the organization's income. This bolivia whatsapp number database includes the call center, sales department, SEO specialists, contextual advertising, and others. These departments have their own expenses, but they should be significantly less than the income received. The key indicators for this CFO are gross revenue, the state of accounts receivable, the cost of selling goods, etc.
Cost center. These are the departments that do not generate income, but are responsible for performing any work within the budget allocated for this. As a rule, this includes most of the organization's departments: logistics, warehouse, administrative staff, etc. The key indicators for this CFO are the volume and cost of purchases, labor intensity, etc.
Profit center (income - expenses). It includes departments that are responsible for generating profit. Most often, profit centers are separate business areas that include their own income centers and profit centers. An example of such a profit center is an offline point of an online store or individual online stores within a holding. The key indicators for this profit center are the financial result,
Each CFO is responsible for achieving its key indicators within the budget allocated to it. This allows calculating the efficiency of the departments and identifying bottlenecks in the operation of the online store.