Business management is a phrase that most people working in the field of financial economics often hear. For a business to develop sustainably, it requires good management of that business. In this article we will also learn: what is business management?

1. What is the concept of business management

?Business management or management of any organization is a complex and important process that affects the operation of that organization.

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Business management can be understood simply as the process of working with and through individuals, groups and other resources (equipment, capital, technology) to achieve the goals of that business. Enterprise management is challenged and evaluated by achieving goals through the organization and implementation of different skills.

2. What is a business manager

?Many people often think of a business manager as a business owner. However, the reality is not quite so. According to Clause 18, Article 4 of the 2014 Enterprise Law, an enterprise manager is the person who manages the company and the manager of a private enterprise, including the owner of the private enterprise, the general partner, the chairman of the Board of member, member of the Members’ Council, President of the company, Chairman of the Board of Directors, member of the Board of Directors, Director or General Director and individuals holding other managerial positions with authority on behalf of the company to sign transactions of the company in accordance with the provisions of the company’s charter.

That is, you must distinguish between the business manager and the legal representative of that business are not the same.

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In a business, some of the titles a business manager can hold are:

– A sole proprietorship is a business owner.

– A partnership company is a general partner.

And all of the following titles:

– General director or director of the company.

– Member of the Board of Directors, the Board of members.

– Member of the Supervisory Board

If the company recognizes in the charter that other than the general director/director of the company, the executive director has the function of signing contracts on behalf of the company.

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3. How are administrative costs determined

?Before learning how to determine how to determine administrative costs, we need to understand the concept of administrative costs.

General and administrative expenses are understood as expenses that are generally related to the entire operation of the enterprise but cannot be separated for any activity.

Thus, according to the above definition, administrative costs include:

– Management staff expenses.

– Cost of materials, tools,

– Depreciation costs of fixed assets,

– Expenses for services purchased from outside and other monetary expenses.

The account used when accounting for business administration expenses.

– Account 642: “Administrative expenses” is used to collect and transfer the expenses of business management, administrative management and other expenses related to the general operation of the whole enterprise.

– Account 642 at the end of the period has no balance and is detailed into sub-accounts:

+) Account 642.1: “Expenses of administrative staff”

+) Account 642.2: “Expenses for management materials”

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+) Account 642.3: “Expenses for office supplies”

+) Account 642.4: “Depreciation expenses of fixed assets”

+) Account 642.5: “Taxes, fees and charges”

+) Account 642.6: “Contingency expenses”

+) Account 642.7: “Expenses for services purchased from outside”

+) Account 642.8: “Expenses in other currencies”

With the above account system, depending on the management requirements of each industry and each unit, a number of other sub-accounts can be opened to track the contents and cost elements of the enterprise management.

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How to effectively manage a business depends on many factors, of which a good manager is one of the most important factors.