Formal and Substantive Coherence of Accounting Items Used for Management Purposes: Option or Necessity?

The formal and substantive coherence of the accounting items in the documents based on which managers' decisions are made identifies a necessary element for decision-making to be based on data that allow the best decisions to be made so that the effect of the company's efficiency is maximized and planned objectives are achieved. However, this coherence is not the only one that must distinguish the company. Coherence between planned and actual actions,coherence between what is verbally, even informally, illustrated and what is carried out at the operational level, coherence between company contracts entered into with workers and company behaviour implemented toward them, coherence between what is indicated in sustainability reporting and the actions carried out by the company in favour of the environment, character in terms of the activities carried out by management and the actions carried out by workers hierarchically subordinate to those managers, are examples of coherence that is in addition to the need for formal and substantive coherence within the items used in the integrated information system. Coherence must permeate every company area: organizational, logistical, accounting, production, commercial, etc. The absence of coherence, even in only one business area, can cause serious harm to business management which, is characterized by gaps and inconsistencies, will not be able to be carried out in a thoroughly efficient and effective manner and, consequently, will not be able to allow the achievement of the company's income, financial and equity objectives planned in the strategic plan and annual budget.