PhD Student of the Department of Economic Theory of Sumy State University
The aim of the article. The aim of the article is to develop a process model of exchange controls as controlling tool that is able to increase the transparency of information flows, reduce paper-based and the risk of mistakes in the calculations and, consequently, allows minimization of losses due to penalties imposed by public authorities for violation of the legal requirements of currency controls.
The results of the analysis. This paper highlights the weaknesses of information exchange that traditionally accompanies the process of exchange controls at Ukrainian machine-building enterprises such as opacity and complexity of information flows, a significant amount of duplicate data flow, low use of computer capabilities while performing calculations, lack of clear division of responsibilities and, as a result, frequent mistakes. Mistakes cause violation of the terms of foreign exchange payments, which entails the payment of penalties imposed by state regulatory agencies. The author has developed schemes of information flow and business process of exchange controls that describe model of exchange controls, which is traditionally used in the workplace.
In order to improve the efficiency of the exchange process at domestic machine-building enterprises authors propose an alternative model of the process based on the use of a single integrated electronic database. Its advantages are the simplification, transparency, information flow, reduce workflow between departments and divisions, reduction the number of employees involved in this process, a clear division of responsibilities, minimization the risk of mistakes in the calculations.
Effects of the proposed process model of exchange controls, in the author`s opinion, will reduce costs associated with this process through prevention of fines, penalties and other sanctions by limiting public bodies, improve understanding and confidence in dealing with the servicing bank and foreign contractors. It could be expected that this results in multiplier economic effect.
Conclusions and directions of further researches. Thus, necessary condition for the effectiveness and efficiency of maintenance of exchange controls at machine-building enterprises is the development and use of a single integrated electronic information system as controlling tool. It is the center of information exchange between structural units and can eliminate the weaknesses and problems that exist at enterprises and associated with currency calculations, which in turn have a positive impact on the effectiveness of foreign trade enterprises.
It is advisable to develop a methodical basis of calculating the economic efficiency of the project of the application of controlling to the process of exchange controls on domestic machine-building enterprises in further studies.
Keywords: currency controls, controlling, business-process, document flow, information management
JEL Classification: M10, M31, O16.
Cite as: Kryvoruchko, L. (2013). Methodical recommendations on regulation of business process currency control at machine-building enterprise engaged in foreign economic activity. Marketing and Management of Innovations, 4, 199-207. https://doi.org/10.21272/mmi.2013.4-19
This work is licensed under a Creative Commons Attribution 4.0 International License
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