Weaknesses of traditional accounting systems used by albanian banks in the framework of products cost and profitability assessment
Gresa, Panajoti
Serving our aim as a Financial Institution to continue being a credible service provider for our clients, we need now, more than ever, to remain focused on our goals and our strategic priorities. This is an undeniable prerequisite if we want to evolve to an even better Bank in the long run. But without doubts, this is a challenging task given the local economic environment within the particularly adverse economic conditions, an aggressive banking system competition as well as internal business framework. Developing and maintaining competitive advantages for our business in the upper framework, among other strategic information and analysis like: marketing, finance, research & developments, requires an accurate management information system (MIS) and analysis of accounting costs and cost drivers. This research will aim to present the weaknesses and the non-reliability of the cost systems frequently used in the Albanian Banking System while assessing product costs and cost – profitability models, and introduces the implementation of the Activity Based Costing system in my Bank, as a better alternative and an improved awareness methodology which provides to the bank management the basis for accurate costs decisions and better cost management.
