What is it? Budgeting at an enterprise is working with the company's income and expenses, which consists of maintaining financial documents of departments. In other words, it is managing the monetary amounts of departments and bringing them together in one global plan.
What to consider? Budgets are made for a year, but depending on the circumstances the term can be increased or decreased. The final period is determined by each organization at its own discretion.
The article explains:
The essence of budgeting self employed data package at the enterprise
Types of enterprise budgets
Principles of budgeting at the enterprise
Requirements for the organization of the budgeting system
Enterprise budgeting methods
Designing a budgeting system
Stages of building a budgeting system at an enterprise
Reporting on enterprise budgets
The relationship between budgeting and the budget cycle of the enterprise
Programs for automation of budgeting at the enterprise
Problems of implementing a budgeting system at an enterprise
Improving budgeting efficiency
Frequently asked questions about budgeting in the enterprise
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The essence of budgeting at the enterprise
Almost every institution, regardless of size and specialization, has a balance of revenue and expenses. In order for the organization to function normally, when drawing up a budget, it is necessary to rationally direct financial flows and manage them, planning subsequent activities. This is facilitated by the analysis of various economic indicators.
Budgeting at an enterprise is the drawing up of a balance sheet consisting of income and expenses, which includes the preparation of estimates, their distribution, as well as timely adjustments after taking into account the changes that have occurred.
Budgeting at the enterprise
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Thus, the budget is understood as such an economic category, in which all income and expenses are calculated and controlled. The commercial success of the company also depends on it.
The art of financial management is very important for the business process, because stable profit generation and the efficiency of interaction of all structural divisions largely depend on it.
Objectives of budgeting at the enterprise
Let us list the main goals pursued by budgeting at the enterprise:
evaluation analysis of the economic situation. When comparing key indicators, it is possible to determine the efficiency of work with a high degree of objectivity and adjust the development strategy;
timely periodic planning of process development based on a set of coefficients that provide an idea of the current economic situation of the company;
organizing the rational use of resources and finding internal reserves for stable growth;
maintaining a positive balance with the desire to increase income while reducing costs;
attracting additional funds from profitable investments;
determination of the level of efficiency of the projects being implemented. Each division should be considered from the point of view of achieving the overall economic result;
control over compliance with discipline, including financial discipline;
synchronous work of departments with a high level of horizontal and vertical communication;
providing a detailed analysis of the cost side to find opportunities for savings and redirect the freed up funds to finance other needs;
building a system of control and stimulation of labor using material methods;
increasing the level of qualification and loyalty of personnel;
strict adherence to all requirements of the regulatory framework.
It follows from this that an implemented and well-regulated budgeting system at an enterprise plays a decisive role in solving a number of problems facing the top management of any commercial organization.
A more ramified structure is justified in large companies, where several financial departments operate in a coordinated manner. Small firms can rely on the work of a small staff of specialists who generate reports directly for the owner.