Strategic priorities for the formation of economic security and the digitalization of managerial reporting for the development of small-scale farming in rural areas

The article is dedicated to examining the fundamental strategic priorities for developing managerial reporting in the context of economic security for small-scale enterprises in rural areas, considering the growth of agribusinesses in Ukraine and worldwide. It has been demonstrated that integrating digitalization into managerial accounting significantly improves the efficiency of the information support system for agricultural enterprises. Approaches have been proposed to establish optimal managerial reporting for small-scale enterprises in rural areas. It is noted that implementing digital technologies in reporting dramatically enhances the transparency and accuracy of financial operations, allowing for the timely identification of financial risks and the prevention of undesirable losses, thereby maintaining the economic security of agribusiness enterprises. Small enterprises in rural areas, which are limited in resources and opportunities for obtaining credit or external investments, can. However, they leverage digitalized reporting systems to improve their financial reliability when collaborating with potential investors and creditors. Moreover, the digitalization of managerial reporting facilitates the optimization of management processes, allowing for more rational planning of the enterprise’s available resources. To this end, we analyzed data from a sheep farming enterprise. In calculating economic indicators in managerial reporting, a developed format for digitalized accounting and reporting information is presented for small-scale enterprises involved in sheep farming. The decrease in the number of sheep and the productivity of products (milk and wool) by 4% from the planned volumes relates to the low quality of fodder, which directly affected the economic results of the agrarian business enterprise. At the same time, the actual revenues of the enterprise turned out to be 4.2% lower than planned due to the fall in the wool market and a slight decrease in revenues from the sale of dairy products. The conclusion is drawn that further implementation of digitalization in accounting processes is advisable to reduce bookkeeping costs. It is substantiated that, in the context of globalization and the digital transformation of markets, the digitalization of accounting procedures is an integral element of the development of management systems, ensuring their adaptability to the challenges of the modern economy. Keywords: agrarian business, strategic priorities, economic development, small businesses, international business, rural areas, enterprise, digitalization, management reporting, economic security.

Authors

Publication Details

Journal
Ukrainian Journal of Applied Economics and Technology
Published
2024-08-30
DOI
https://doi.org/10.36887/2415-8453-2024-3-20
Citations
1
Primary Topic
Digitalization and Economic Development in Agriculture
Type
article
Field-Weighted Citation Impact
0.55
Controls
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article

Strategic priorities for the formation of economic security and the digitalization of managerial reporting for the development of small-scale farming in rural areas

Oleksandr Polishchuk, Наталія Вдовенко, Nataliia Korоbova
1 citations
Ukrainian Journal of Applied Economics and Technology
Digitalization and Economic Development in Agriculture
0.55
article

Strategic priorities for the formation of economic security and the digitalization of managerial reporting for the development of small-scale farming in rural areas

Oleksandr Polishchuk, Наталія Вдовенко, Nataliia Korоbova
article en
1 citations

Abstract

The article is dedicated to examining the fundamental strategic priorities for developing managerial reporting in the context of economic security for small-scale enterprises in rural areas, considering the growth of agribusinesses in Ukraine and worldwide. It has been demonstrated that integrating digitalization into managerial accounting significantly improves the efficiency of the information support system for agricultural enterprises. Approaches have been proposed to establish optimal managerial reporting for small-scale enterprises in rural areas. It is noted that implementing digital technologies in reporting dramatically enhances the transparency and accuracy of financial operations, allowing for the timely identification of financial risks and the prevention of undesirable losses, thereby maintaining the economic security of agribusiness enterprises. Small enterprises in rural areas, which are limited in resources and opportunities for obtaining credit or external investments, can. However, they leverage digitalized reporting systems to improve their financial reliability when collaborating with potential investors and creditors. Moreover, the digitalization of managerial reporting facilitates the optimization of management processes, allowing for more rational planning of the enterprise’s available resources. To this end, we analyzed data from a sheep farming enterprise. In calculating economic indicators in managerial reporting, a developed format for digitalized accounting and reporting information is presented for small-scale enterprises involved in sheep farming. The decrease in the number of sheep and the productivity of products (milk and wool) by 4% from the planned volumes relates to the low quality of fodder, which directly affected the economic results of the agrarian business enterprise. At the same time, the actual revenues of the enterprise turned out to be 4.2% lower than planned due to the fall in the wool market and a slight decrease in revenues from the sale of dairy products. The conclusion is drawn that further implementation of digitalization in accounting processes is advisable to reduce bookkeeping costs. It is substantiated that, in the context of globalization and the digital transformation of markets, the digitalization of accounting procedures is an integral element of the development of management systems, ensuring their adaptability to the challenges of the modern economy. Keywords: agrarian business, strategic priorities, economic development, small businesses, international business, rural areas, enterprise, digitalization, management reporting, economic security.

Ukrainian Journal of Applied Economics and TechnologyVol. 2024(3)
Openalex Percentile: Top 22%
Digitalization and Economic Development in Agriculture
0.55
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