home Business blogs What opportunities does budgeting provide to the management of the enterprise? Budgeting: issues, functionality and stages of implementation

What opportunities does budgeting provide to the management of the enterprise? Budgeting: issues, functionality and stages of implementation

The topic of competent, effective budgeting and financial analysis is not new for Russian companies. In a number of firms and large holdings, this business process has long been automated, implemented (including with the help of our company) and successfully used. However, there are still a lot of organizations in which professional budgeting is not even thought about.

By analyzing the market information technologies(in general) and the segment of budgeting automation in enterprises (in particular), using the accumulated implementation experience of our company EFSOL and starting from the needs of the business, we open a cycle of analytical materials with this article. In them, we will talk about what “full-fledged budgeting”, “management accounting” and “professional financial analysis” are. Let us describe the difficulties faced by companies wishing to implement budgeting systems, automate this task, and also imagine possible ways solutions to emerging problems.

What is meant by budgeting?

Budgeting- this is the production and financial planning of the enterprise by drawing up the general budget of the enterprise, as well as the budgets of individual departments in order to determine their financial costs and results.

What are the tasks of budgeting in an enterprise?

Among the main goals and objectives:

Increasing the manageability of the company
Increase in financial result
Create a database for acceptance management decisions
Increasing the efficiency of expenses and capital investments - in terms of their impact on labor productivity, reducing production costs, increasing sales, etc.
Ability to effectively manage company resources

As can be seen from the tasks performed by budgeting, when it is implemented, the company receives additional tools to increase profits and growth.

Why do many companies still not use budgeting?

There are several main reasons:

Misunderstanding what budgeting is, why budget planning is needed at all.
Ignorance of what means of automation, with the help of what information systems it is possible to implement budgeting in an enterprise (in a company, holding, etc.).
Unwillingness to spend time and money on the implementation and further use of budgeting.
Reluctance and any opposition to the introduction of budgeting on the part of ordinary employees and heads of departments and branches that will be involved in the process of budget planning and the implementation of the tasks set.

How to deal with these problems?

The first two reasons rest on a lack of awareness. To solve them, it is enough to highlight a small amount time to search for information on this issue, for example, on the Internet, or spend time communicating with representatives of IT developers who are professionally involved in the implementation of budgeting in enterprises. Experts will help to automate budgeting in a company, help build or improve business processes for managing a company and making financial decisions. If necessary, they will also help to adjust the structure of the company for more efficient operation.

In the third case, independently or, again, with the help of companies professionally involved in the implementation of budgeting, it is necessary to determine what benefits (and there are a lot of them!) The enterprise will receive from this implementation. The data obtained will help to make sure that it is necessary to implement and automate budgeting.

The fourth reason must be dealt with by the "volitional decision" of the company's management, without which, as practice shows, no implementation can take place. And this applies not only to budgeting, but also to most other implementations of new information systems. This reason is due, firstly, to the fact that planning work is added, which the employees responsible for the budget do not want to do, if only because they are given additional responsibility for the implementation of the plans. Secondly, in the absence of budgeting, the execution processes, even short term plans remain non-transparent (and this plays into the hands of unscrupulous employees, who have the opportunity to “shift the blame” onto another division, employee or branch for unfulfilled plans. Thirdly, in a number of cases we are talking about the desire to work "without straining", and without making any attempts to improve the efficiency of their work.

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Implementation of budgeting

It must be understood that the introduction of budgeting in an enterprise is not a process that can be completed within a day or a week by installing “some kind of program” for working with budgets. The introduction of budgeting is a serious time-consuming process of developing planning and forecasting mechanisms for the company's work and controls, as well as large-scale implementation of these plans. AT this process not only top managers who are interested in the company and its results as a whole, but also those who will directly build these plans in the context of individual budget items, for specific departments and branches or for specific projects, should participate.

For each enterprise, the construction of business processes for financial planning and implementation of plans, as well as the measures that are taken to ensure their implementation and increase work efficiency, are unique. However, there are common concepts, recommendations and tools that allow you to standardize these processes and achieve maximum results. To do this, the system integrator performing the implementation needs to study and clearly understand the specifics of the work of the automated company. For this purpose, it is mandatory to involve the company's employees participating in automated processes at one stage or another. After that, an analysis of current business processes will be carried out and recommendations will be developed. Often, when introducing budgeting, an enterprise not only receives new schemes of interaction between divisions, departments and branches, but also clearly distributes rights and obligations between divisions, having received an important and useful Additional information based on the survey.

Functions of budgeting and financial analysis

To better understand a full-fledged budgeting system, its capabilities and the benefits it brings, let's consider what functions it performs:

Functions	Description of tasks
Analytical	building a business idea and setting goals; development of the company's strategy; analysis of operational alternatives.
Motivational	meaningful acceptance of the plan; clarity of goal setting; punishment for failure and reward for performance.
Coordinating	function block coordination operational planning.
Communication	coordinating the plans of the company's divisions; fixing the responsibility of the performers.
financial planning	drawing up plans and forecasts for future periods.
Financial Accounting	analysis of actions performed in the past; drawing up a strategy and plans for future periods.
Financial control	comparison of the tasks set and the results obtained; identification of weaknesses and strengths.

Stages of budgeting implementation

In the general case, the implementation of a budgeting system is usually divided into stages, shown in Figure 2.

Stage 1. Formation of the financial structure

At the first stage, the financial structure of the enterprise is formed.

For planning and control of production and financial activities its enterprises are divided into Financial Responsibility Centers (CFD). Each such CFD is assigned certain functions (budgets) and certain responsibilities. Very often, CFDs correspond to departments or divisions of an enterprise, however, in some cases, one CFD may include several divisions, or vice versa, one division may be included in several CFDs. Examples of CFAs include:

Cost center (CZ). It may include several divisions that do not make a profit, but are only consumers of resources, for example, production shops, accounting, personnel department, etc.
Revenue Center (CR) directly involved in making a profit. A characteristic representative of the CSD are sales services, sales departments, etc.

If necessary, one CFD may include several divisions, which are even geographically located in different places, for example, in different cities, but perform the same functions.

But, as mentioned earlier, in most companies, one CFD corresponds to one division or branch of the company - it is easier for small companies to control the execution of budgets and delegate responsibility directly to those who put the plans into action.

Stage 5. Operational and financial budget

At the fifth stage, work is carried out to draw up an operational and financial budgets for the planned period, conducting scenario analysis, adjusting the budgeting system based on the results of the analysis of its compliance with needs.

Order implementation

Implemented budgeting system in action

Let's imagine that all implementation work has been successfully completed. The company has an automated Information system budgeting and financial analysis. What problems will it help the company solve?

First of all, the system will help to significantly reduce the duration of budget planning. It will help increase the transparency of the financial and economic activities of the enterprise, improve control over the management of the company's resources, allow you to see where additional resources can be freed up and where they need to be "infused", which, in turn, will lead to an increase in the company's capital, etc. As a result, unforeseen losses of funds will be significantly reduced, profitability and profitability of the business will begin to grow.

We will talk about other features of the budgeting system implemented on the basis of 1C: Enterprise and the problems that it helps to solve in the following analytical articles of this series.

The budget of an enterprise is always developed for a certain time interval, which is called the budget period. The correct choice of the duration of the budget period is an important factor efficiency of budget planning of the enterprise.

As a rule, the organization's consolidated budget is prepared and approved for the entire budget period (usually one calendar year). This is due to the fact that during such a period of time seasonal fluctuations in the conjuncture are leveled off. Indicative, i.e. without approval as a system targets and mandatory standards, some budget indicators can be set for a longer period (three to five years). In addition, within the budget period, each of the budgets has a breakdown into sub-periods.

Budgeting is the process of drawing up and implementing this document in the practical activities of an enterprise. The budget process is not limited to the stage of drawing up a consolidated budget. In general, the process is a closed loop of financial management, including three successive stages:

stage of development and draft of the consolidated budget;

approval of the draft budget and its inclusion in the structure of the scientifically based business plan of the organization;

analysis of budget execution following the results of the current year .

The budget cycle includes the period of time from the beginning of the first stage to the completion of the third stage. The budget process should be continuous, that is, the completion of the analysis of the current year's budget execution should coincide in time with the development of the next year's budget. That is, the analysis of budget execution is both the starting and the final stage of the budget cycle.

Let's take a closer look at the content of the stages.

The first stage (the stage of developing a draft consolidated budget) is the preparation of a preliminary draft budget for the next planning year. Particular attention is paid to the assessment of the implementation of profit and profitability plans. Such an assessment is based on a careful development of the composition of the costs included in the cost of production. At this stage, it is evaluated manufacturing program, its qualitative and quantitative parameters, changes in pricing and credit policies, and the new production potential of a commercial organization is determined based on an analysis of the rationality of the use of assets, the development of new technologies and types of products. The prepared preliminary draft budget is adjusted in connection with changes in external and internal conditions.

At this stage, the work of a large number of involved ordinary personnel of planning and economic services and structural divisions, which approves budget tasks: main production workshops, commercial directorate (sales department), logistics department and others.

The second stage (approval stage) is reduced to the preparation of the final draft budget and its inclusion in the structure of the scientifically based business plan of the enterprise.

In small enterprises, the consolidated budget is usually developed by the accounting department and approved by the president of the organization.

On medium and large enterprises The decision to approve the consolidated budget can be taken by:

- the board of the organization, which includes top management;
- the president of the organization (in this case, the board of the organization is an advisory body under the president);
- the board of directors of the organization (Figure 1.2);
- general meeting of shareholders (the board of directors submits the draft consolidated budget for approval general meeting shareholders).

After approval of the budget, he takes the force of the order.

Figure 1.2 - Approval of the consolidated budget of a commercial organization

The third stage is the analysis of budget execution based on the results of the past year. At this stage, an analysis of the financial condition of the enterprise is made, on the basis of which the necessary adjustments are made to tactics and strategy. economic development organizations .

In order for the budgeting system to be effective, a number of mandatory conditions, without which this system simply cannot work.

Firstly, the enterprise must have an appropriate methodological and methodological base for the development, control and analysis of the implementation of the consolidated budget, and employees of management services must be qualified enough to be able to apply this methodology in practice. Methodological and methodological basis for the preparation, control and analysis of the implementation of the consolidated budget, an analytical block (or component) of the budget process.

Secondly, in order to develop a budget, control and analyze its implementation, appropriate quantitative information about the activities of the enterprise is needed, sufficient to imagine its real financial condition, the movement of inventory and financial flows, and the main business operations. Therefore, the enterprise must have a system management accounting registering facts economic activity necessary to ensure the process of compiling, controlling and analyzing the consolidated budget. The management accounting system at the enterprise forms the basis of the accounting block (component) of the budget process.

Thirdly, the budget process does not take place in a "vacuum space" - it is always implemented through the appropriate organizational structure and management system that exist in the enterprise.

The concept of organizational structure includes:

- the number and functions of the services of the management apparatus, whose responsibilities include the development, control and analysis of the enterprise's budget;
- a set of structural units that are objects of budgeting, that is, those responsibility centers that assign a budget plan and are responsible for its implementation.

The budgeting management system is a regulation on the interaction between the services of the administrative apparatus and structural divisions, fixing in the relevant internal regulations and instructions the responsibilities of each division at each stage of the budget process. Since the budget process is continuous and repetitive (regular). In the same way, on a regular basis, at the appropriate time, the accounting information necessary to ensure it should be received by the management apparatus from structural divisions.

On the other hand, the structural subdivisions must receive from the management apparatus in a timely manner the budget task and the adjustments made to it during the budget period. Consequently, the most important component of the regulation of the budget process is the internal document flow - a set of regular, fixed in the relevant internal acts and instructions, information flows of enterprise divisions in the process of developing, monitoring and analyzing the implementation of the consolidated budget.

Fourthly, the process of development, control and analysis of budget execution involves the registration and processing of large amounts of information, which is difficult to do manually. In the budget process, the level of efficiency and quality of accounting and analytical work is significantly increased, and the number of errors is reduced when using software and hardware. The software and hardware tools used by the enterprise structures involved in the budget process constitute the software and hardware block of the budgeting system.

All four components of the budget process are closely related and constitute the infrastructure of the budgeting system in the enterprise (Figure 1.3). For example, internal document flow is located at the junction of accounting and organizational blocks, since, on the one hand, it covers a set of information flows directly determined by the current management accounting system, on the other hand, it is rigidly fixed by internal regulations in the form of a number of internal regulations, and this is already part of control systems.

Figure 1.3 - Infrastructure of the budget process

In his work, Kot A.D. and Filippov V.E. identified another most important factor, from their point of view, that determines the effectiveness of the implementation of the budgeting process. It is the exact following of the hierarchy of goals, targets, activities and budgets, affecting several levels of management. The main element in this case is the hierarchy of goals. The goals of the lower level of management should correspond to the goals of the upper level of management. Only in this way an effective development strategy can be built at the enterprise. Target indicators, which are quantitative indicators of goals, should also be interconnected by a clear hierarchical relationship. However, this does not mean that the indicators at all levels of management should be the same.

As for events, here the hierarchical relationship can be of two types. The first type of activities is carried out centrally at the top level of management and affects a number of departments in which their activities are developed, but in line with those carried out “at the top”. The second type is implemented only at the lower level and is associated with the upper level of management through budgets.

Enterprise budgeting is one of the most important components of economic planning, which in turn is part of financial management. In fact, it is a special type of planning, which is based on the principles and methods of execution, compilation, control, evaluation and adjustment of budgets, presented in the form of a specific form of plans. In another way, we can say that budgeting in an enterprise is planning the future economic activities of the organization, the results of which are drawn up using the budget system.

Its main purpose is to develop, as well as increase the validity and effectiveness of all kinds of management decisions. The mechanisms that budgeting has in an enterprise can be effective when trying to make the workflow more efficient, get new resources, and increase targets. The benefits are obvious.

Budgeting at the enterprise allows you to:

optimize profits and costs;
coordinate the activities of different departments of the enterprise;
identify what resources are needed and what can be discarded;
analyze part of the enterprise or its entirety;
strengthen discipline within the enterprise.

It must be borne in mind that budgeting in an enterprise is separated from tax, as well as accounting. Budgets are usually created as part of ongoing planning. This means that their conditionality with strategic plans is important.

expenses and income;
investments;
use of various resources;
attraction of new sources of financing.

The period of time for which the budget is developed is called the budget period. It is determined by the current planning at the enterprise. The planning horizon (its duration), in turn, is directly related to the forecasting horizon, and also depends on the instability of the external side of the enterprise.

It is a combination of processes that are directly related to the budget (meaning the formation, approval, and control). It is developed in accordance with the internal state of the enterprise.

The budgeting system is a set of those measures that are used to implement the budgeting process. It consists of the following elements:

responsibility centers;
financial management structure;
methods of budget formation;
budget management;
budget consolidation.

The organization of budgeting at the enterprise is possible if:

systems of responsibility and authority;
strict rules of relations between employees;
qualified personnel;
accepted and prescribed functions of units.

The financial budgeting process involves:

distribution of main and secondary functions in the management apparatus;
creation suitable system motivation;
creation of high-quality information infrastructure;
determination of mandatory accounting centers;
definition of responsibility centers;
creation internal rules, as well as their own regulatory documents.

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budgeting management finance

Introduction

1.2 Functions of budgeting

Conclusion

List of sources used

Appendix

Introduction

The desire to work with maximum economic return is forcing many companies today to reform both their internal organizational structure and business management methods, one of which is budgeting.

To date commercial organizations run at your own risk. How to track costs and revenues in the enterprise? What should be the system of accounting, planning, analysis and control in order to become a reliable tool for making the right management decisions? How to predict today what will happen to the company tomorrow?

Over the past few years, the promotion of budgeting has received a lot of influence. Budgeting allows you to coordinate the activities of departments within the company and subordinate it to the general strategic goal. Budgets cover all aspects of economic activity and include planned and reporting (actual) data.

The budgets reflect the goals and objectives of the company. Therefore, in the budgeting process, current control is provided over decisions and procedures to achieve the planned financial indicators as a result of the formation, distribution and use of the company's economic assets at all stages of its creation, operation, reorganization and liquidation, as well as as a result of the formation and changes in valuations and proportions of assets. and liabilities of the company.

The relevance of the problem of setting a budgeting system Russian enterprises is determined by the following main factors: firstly, the need to find internal reserves to reduce the costs of production and sales of products, substantiate optimal levels of financial spending, optimize tax policy and other tasks related to improving the enterprise management system; secondly, an increase competition between enterprises and, as a result, the need to obtain additional competitive advantages, for example, due to more effective system financial management; thirdly, it is during the creation of budgeting systems that it becomes possible to seamlessly integrate modern management and information technologies, which qualitatively increases management efficiency; fourthly, the need to increase the investment attractiveness of the company, since foreign investors are more willing to invest financial resources in enterprises with a high level of management organization.

The budgeting system allows streamlining the flow of information, allocating responsibility for making decisions, monitoring the activities of individual economic niches, linking strategic, tactical and operational levels of enterprise work planning. Therefore, in the system of measures crisis management budgeting plays key role, because it allows you to quickly monitor the result of the implementation of measures aimed at preventing or eliminating crisis situations, prevent the occurrence of negative trends, provides guidance with the information necessary to make informed management decisions. However, the relevance of budgeting as a tool of anti-crisis management, in essence, is still not recognized, first of all, by enterprises in the real sector of our economy.

The first step in the difficult path of building a budgeting system can be the theoretical and practical training of enterprise specialists on the formulation and automation of budgeting. For these purposes, a special training program has been developed. What does the company get as a result? The financial flows of the company become transparent for the head. They have the ability to prioritize payments; track and control financial results activities of the company as a whole and for individual centers of financial responsibility; plan a move Money and movement of inventory items; plan the income and expenses of the company; build and evaluate internal indicators of liquidity and profitability of the company and its individual businesses. The company gets the opportunity to meaningfully move towards its goals.

The purpose of this work is - analysis of financial management based on budgeting. In accordance with the goal, the following tasks were solved:

Theoretical foundations of budgeting at the enterprise are considered;

The methodology of budgeting in the financial management system is disclosed;

The role of budgeting at the present stage of economic development is shown.

When writing the work were used study guides, monographs of Russian and foreign experts in this field, Internet resources.

In the calculation part term paper based on the balance sheet of the enterprise in the reporting year, the structure of the asset and liability of the balance sheet was analyzed, analytical indicators were calculated and preliminary conclusions were drawn on the policy of forming assets and financial resources, financial stability, solvency and liquidity. Formed a conclusion on the financial position of the enterprise. Recommendations are given for optimizing the financial structure of capital.

1. Theoretical foundations of budgeting in the enterprise

1.1 The economic essence of budgeting

Budgeting is, on the one hand, the process of drawing up financial plans and estimates, and on the other hand, it is a management technology designed to develop and improve the financial feasibility of managerial decisions. It can be considered as one of the enterprise management tools.

Budgeting - includes the process of planning, control, analysis and adjustment of the financial and economic condition of the enterprise with the distribution of responsibility for the results of the work, the results of which are formalized by the budget system.

In market conditions, it is budgeting that becomes the basis of planning - the most important management function. The entire system of intra-company planning should be based on budgeting, i.e. all costs and results must have a strictly financial expression.

The essence of budgeting lies, first of all, in the fact that budgeting is a mechanism by which the current (short-term) goals of the enterprise are managed, and the implementation of the budgeting process is the daily activities of the enterprise.

Thus, budgeting in the system of enterprise plans occupies a key place, as it is responsible for the implementation of the strategy, the effectiveness of current production and financial activities and for feedback in the control system.

From a scientific point of view, budgeting is a more complex, more multifaceted concept: on the one hand, it is really identified with the process of developing and implementing (organizing the implementation) of intra-company operational plans for resource support; on the other hand, it is also a method of planning; on the third hand, it is also a management technology designed to develop operational decisions and ensure their financial validity.

When considering budgeting as a process, it is important to choose budgeting objects. This can be the company as a whole, and responsibility centers, and individual business transactions or groups of operations, and individual projects, etc. It must be borne in mind that budgeting is a closed, interconnected process that has its own specific inputs and outputs, as well as the mechanisms and tools by which it is regulated.

Budgeting is not without reason considered as the basis of financial discipline in companies. At the same time, the need to allocate responsibility centers is put forward as an inevitable postulate of the creation of such a system.

Of course, responsibility centers allow to increase the responsibility of managers for the financial results achieved by these departments. However, when allocating responsibility centers, it is important not to forget about the need to maintain the manageability of the company as a whole, about its ability to transform to business requirements. In other words, imposing financial discipline should not become an end in itself, but should act as a tool, a mechanism for achieving business goals, and, accordingly, the allocation of responsibility centers should be consistent with the requirements of business flexibility.

Budgeting as an integrated system of operational planning, control and analysis of the company's financial and economic activities, first of all, should determine the main cost parameters of doing business, namely: the company's need for financial resources to ensure its solvency; availability of free financial resources during the planning period; the size of the expected profit, the composition and structure of capital. The degree of detail, the level of accuracy of the forecast values of cost indicators, the composition of budgets should be determined on the basis of the ratio of "costs and benefits" from setting up a specific budgeting system.

Budgeting as a management technology includes three important elements:

budgeting technology, which is a sequence of developing budgets, the procedure for consolidating budgets of different levels and functional purposes, types and forms of budgets, the composition of planning targets, intra-company norms and standards, procedures for compiling and adjusting budgets;

organization of budgeting, which includes the creation (presence) of a financial structure (responsibility centers or institutionalized businesses of the company), budgetary regulations that determine the distribution of functions of the budgeting management apparatus, a system of internal regulations, job descriptions;

automation of settlement operations, including the setting of management accounting based on integrated information processing, which allows you to receive operational information on the implementation (implementation) of the adopted budgets.

The absence of at least one of these elements (conditions) can reduce all budgeting work to zero in terms of its practical significance, since the costs of developing a budgeting system may be higher than the potential benefits from a budgeting system. It should be borne in mind that only a few Russian companies a full-fledged management accounting has been established, without which it is difficult to create an effectively functioning full-fledged budgeting system that provides a real increase in the efficiency of management and functioning of the company.

Thus, one of the main functions of budgeting is forecasting (financial condition, resources, income and costs). This is what budgeting is valuable for making managerial decisions.

1.2 Functions of budgeting

Budgeting performs four main functions: planning, accounting, control and management.

Planning function. This feature is the most important. Budgeting is the basis for in-house planning. Based on the strategic goals of the enterprise, budgets solve the problem of distributing financial resources at the disposal of the enterprise. The development of budgets gives quantitative certainty to the chosen prospects for the activity of the enterprise, all costs and results acquire monetary value. Budgeting contributes to the correct and clear goal-setting in the enterprise, the development of a business strategy.

Accounting function. Budgeting is also the basis for management accounting. The accounting system must present accurate facts by department, product, area of trade, or a combination of these. Thanks to budgeting at the enterprise, it becomes possible to obtain accurate information, compare the intended goals with the actual results of the enterprise.

The role of budgeting in management accounting is to reflect the movement of cash, financial resources, accounts and assets of the enterprise, to present the relevant indicators of the financial activity of the enterprise in a timely manner in the most appropriate form for making effective management decisions.

Control function. Is also an important day of the enterprise. Of course, no matter how good the plan is, it remains useless if there is no effective control over its implementation. The budget is a set of indicators or criteria that should be used in monitoring the activities of the enterprise. Through continuous comparison of actual data with planned indicators, it is possible to evaluate performance at any stage. Budget planning allows you to identify deviations in activities from what was expected in the budget, and correct actions. Budgets in an enterprise must be constantly reviewed and adjusted as necessary in order to maintain their controlling role.

control function. Budgeting is an effective tool for managing the activities of structural divisions in an enterprise. A well-built budgeting system implies clear procedures for making managerial decisions and an appropriate delineation of responsibility. At the same time, the right (and duty) of decision-making is delegated to the very unit that is responsible for the relevant area of activity.

1.3 The place of budgeting in the financial management system and its implementation in the enterprise

Comparison of financial management tools shows characteristics budgeting as a method of financial management (Table 1).

Table 1. Comparison of financial management tools

Financial management tools	Application horizon	Difficulty of techniques	Structuring	Organization complexity
Budgeting	Short term		Organizational Financial Information Financial Responsibility
Financial and economic analysis	Long term		financial information
Tools for managing external financial flows (raising and placing funds, leasing, factoring, offshore, etc.)	As needed		Not required

Budgeting is the most transparent as a financial technique. The financial result of the company's activity is divided into separate articles, from which it is composed, the expected values for each article and, thus, the overall final value are planned, and then it remains to manage deviations by comparing the planned and actually obtained values.

But, budgeting is difficult, precisely as an organizational technique that requires synchronous and purposeful activities, a large number of working managers. Prior to its introduction, accounting has traditionally been in the position of a pariah at enterprises. The difficult fate of an accountant is due to the need to submit various reports regularly and on time, moreover, strictly in the form provided for by the current regulations. regulations. After the introduction of budgeting, the entire company turns into a large accounting department and begins to count, write and hand over. That is, a difficult fate is now prepared for almost all managers of the enterprise. The situation is aggravated by the fact that it is necessary to submit not only reports, but also plans, and do this monthly. In addition, one must also be responsible for the implementation of the budget.

When starting the budgeting process, many managers do not always understand the organizational implications of implementing this method. Therefore, this process is usually not brought to an end, and the results obtained, as a rule, only add "headache" to the financial director who initiated it.

Typical stages of the process of implementing budgeting in an enterprise:

A) At the first stage, the structuring of budget items and schemes for their consolidation is carried out. With a proper understanding of the financial and economic model of activity, this task is within the power of any professional financial manager. After solving it, he has the opportunity to plan finances in the context of budget items, as well as analyze what deviations did not allow the company to achieve the planned financial result. But this is only the first step in building a budget system. (Although some companies finish it on it).

B) At the next step, it is necessary to distribute the planning of the values of budget items among the so-called "financial accounting centers" (FACs). This is how another basic idea of "budgeting" manifests itself, as a method of short-term financial management - competence in determining the real values of budget items (both in terms of revenue and costs) is higher at the place of their formation, i.e. in the divisions responsible for sales, production and support of activities, and not in the financial and economic planning departments. In organizational terms, the task of constructing regulations for the operational collection and consolidation of planned and actual indicators should be solved here. This stage can already be realized by a few - the lack of clear organizational regulations at the enterprise in general hinders. Adding new financial planning functions is difficult when other functions performed by the unit are not clearly defined…

C) And, finally, a genuine system of budget management is unthinkable without creating a model of financial responsibility - building a financial structure with the allocation of centers of financial responsibility (CFD). Only this model, which provides for responsibility and incentives for managers depending on the implementation of their declared budget indicators, makes the budgeting system work. That is, a mechanism is introduced into the budget management system, the purpose of which is to ensure maximum convergence of planned and actual data. Now the budget is not only a consolidated forecast compiled by competent managers, but also a real one. financial plan, which has specific performers personally interested in its implementation. Great difficulties in building the budget system are also caused by the allocation of financial responsibility centers in the company - the Central Federal District.

CFDs can include objects of two types - those that affect profitability and those that affect solvency. The first are the traditional centers of income (CA), costs (CZ), profits (CP), etc. They are positioned in relation to various articles of the BDR - if the unit is responsible for at least one article reflected in the income and expenditure budget (BDR), it is a CFD. The second type of CFD is the centers of responsibility for receiving (incoming) and spending (outgoing) funds, which are positioned relative to various cash flow budget items (BDDS). It is advisable to also include investment centers (ICs), which are fully responsible for cash flows for a dedicated project.

Within one CFD there can be both centers of both types, and only one of them. It should also be noted that the financial structure of the enterprise, the elements of which are the CFD, is based on the relationship of functional subordination. Ideally, one should strive to build such an organization structure in which the organizational and financial structures would coincide as much as possible.

Many experts in this field believe that such a budgeting system has not yet been completed at any Russian enterprise. Yes, and in the West, properly set budgeting is an indicator of the highest managerial maturity of an enterprise.

It must be borne in mind that the task of introducing budgeting is not solved with the help of some unique computer program - ours or foreign. Traditional automation is focused on the management of resources (financial or material). On the contrary, when budgeting, the coordinated and motivated work of a large number of people comes to the fore, which is unrealizable without adequate structural organization activities and personnel management. The same difference, between special logistics techniques (for example, statistical inventory management) and the organization of business processes, which, again, is associated with the synchronization and motivation of the work of the “process team”.

2. Methodology of budgeting in the financial management system

2.1 Key steps in the budgeting process

Budgeting is a continuous cyclical process consisting of a sequence of interrelated stages:

1. Preparatory stage. The task of the stage is to develop scenario conditions for the formation of the "Master Budget" of the enterprise based on the analysis of activities and budget execution for the previous period. At this stage, development concepts and action plans are developed, financial forecasts for the next year are made, the main parameters and proportions of the Master Budget are determined, standards and limits are calculated.

2. The stage of formation, coordination and approval of the budget. At this stage, on the basis of scenario conditions, the development of budgets, plans, estimates, their consolidation and calculation of benchmarks is carried out. The process of budgeting is iterative, the final version is a compromise between different levels of management. Coordination of the parameters of budgets and approval of the consolidated budget of the enterprise are carried out in accordance with the established regulations.

3. Execution of the budget. At this stage, as a result of the practical activities of the enterprise, actual budget indicators and key indicators efficiency (KPI), since the result of the activity contains both the degree of achievement and the costs of obtaining the result.

4. Plan-fact, analysis of budget execution. The objectives of the stage are to quickly identify deviations of actual budget indicators from planned ones, analyze the causes of deviations and make appropriate management decisions.

5. Review and adjustment of the budget. The need to adjust the budget arises due to significant deviations of the fact from the plan and (or) changes in the economic situation (external and internal prerequisites). Budget adjustments are carried out in accordance with the established regulations.

6. Formation and approval of the report on budget execution. At this stage, the results of budget execution are summed up, the effectiveness of the budget system is analyzed, decisions are made on the development of the methodology and organization of the budgeting process. The stage is both the final one for the past budget period and the starting point for planning for the next period.

2.2 Types of budget models and their applicability in modern conditions

Currently, the demand for services for the development and implementation of budget management systems is steadily growing. At the same time, many top managers, who in general terms represent the "external" components of such systems - the presence of several interconnected budgets, integration with accounting and operational accounting systems, the use of automation tools, etc. - cannot always objectively assess the relationship between time and money spent on the implementation and operation of the system and the return on the resulting information support decision making.

It is often necessary to develop and launch a budget management system in a short time in order to get the first results as quickly as possible, expressed in increasing the transparency of the formation of financial results and in improving the manageability of the company. The key to the optimal ratio of costs for setting budgeting and the resulting economic and organizational effects is the choice of the optimal model of budgetary management at the stage of setting the problem.

The most commonly described is a complex budgeting model that describes a number of functional budgets that evaluate the outputs of the main processes of an enterprise: purchases, production, sales, settlements, etc., there are also operating budgets that measure the contribution of each financial responsibility center (FRC) to the final financial result . The data of these two groups of budgets are consolidated into three consolidated budgets of the enterprise - the income and expenditure budget (BDR), the cash flow budget (BDDS) and the balance sheet budget (BBL). Thus, necessary condition for the correct formation of consolidated budgets, it is the coverage of functional and operational budgets of all areas of activity and divisions, that is, accounting for all operations that affect the accrual of income and expenses, as well as the movement of cash and other assets and their corresponding liabilities.

At the same time, practice shows that the vast majority of enterprises are not ready to immediately switch to a comprehensive budgeting model for a number of reasons, so it is necessary to choose other models that will allow you to focus on those areas of activity that require particularly close attention from managers.

The budget structure of an enterprise is determined by three main factors:

1. requirements imposed by the management of the enterprise,

2. the specifics of the economic activity of the enterprise,

3. management structure of the enterprise (future financial structure).

Management requirements are understood as requirements for the composition, detail and frequency of the budgeting procedure. The budget structure should reflect those areas of economic activity, the control of which is mandatory for regular management, i.e. to be minimally sufficient for the successful management of the enterprise.

At the same time, the requirements for detailing and reliability of the information contained in it are also presented to the budget structure. The higher these requirements, the more complete the budget structure should be, i.e. cover all areas of business. Only the complex model of the budget structure has completely reliable information, and the most detailed and reliable information is provided by the individual complex model of the budget structure (see below).

The specifics of the economic activity of the enterprise involves an individual approach to the development of functional budgets. There is no single (basic) budget structure for all types of enterprises and areas of economic activity. Traditional budget structures, as a rule, are based on typical industrial or commercial enterprises, and, for example, for financial and credit organizations, construction or housing and communal enterprises they are not suitable.

Based on the practice of developing and implementing budget management systems, the following budget models can be distinguished:

* Individual model of integrated budgeting

* Universal budget model

* Budgeting of individual areas of activity

* Budgeting of financial flows

* Budgeting of inventory flows

1. Individual model of integrated budgeting

The main feature of integrated budgeting is the preliminary construction of a process model of the enterprise, followed by linking the generated functional budgets to the results (outputs of business processes). This model will be purely individual, taking into account the peculiarities of the production and financial activities of each enterprise. It is safe to say that this approach is applicable for companies of any profile of activity, even for non-profit organizations.

Benefits of integrated budgeting:

Focus on the features of the enterprise;

Obtaining the necessary detailing of planned and actual indicators;

Coverage of all areas of activity;

The main disadvantage of this model is the long development period, and, as a result, the high cost and risks in achieving the result.

2. Universal budget model

This model, like the complex one, covers the entire enterprise, but is simpler in terms of development and operation. The first step in the development of the budget structure is to determine the list of BDR and BDDS items, as well as the formation of a financial structure based on the scope of the financial powers of the enterprise's divisions (income, expense, profit management, etc.). Then there is a comparison of the articles of the consolidated budgets and the CFD, that is, operational BDRs are created for each responsibility center. In the event that CFDs can manage payments within the framework of their activities, then operational BDDS are also formed. The sum of financial results and net cash flows for the elements of the financial structure gives, respectively, the financial result and net cash flow, respectively, for the whole organization.

Advantages of the universal model:

High speed of development and implementation, especially for diversified enterprises or for groups of companies with a large diversification of products;

Possibility of relatively simple accounting of internal turnover;

Speed of planning and consolidation of actual data.

The disadvantage is the lack of functional plans (or their maintenance in other documents), which sometimes interferes with a balanced assessment of enterprise plans for the main functional areas.

3. Budgeting of certain areas of economic activity

Budgeting models for individual areas of economic activity are the simplest, their purpose is to provide the management of the enterprise with information about the areas of activity of the enterprise that are relevant for control. Such models may contain from one to several in-kind or natural-value budgets. For commercial and manufacturing enterprises, such budgets are traditionally sales and production budgets.

The advantages of such budget models are:

Quick and inexpensive implementation, allowing you to quickly gain control over the most relevant areas of activity;

Effective functioning of the model, due to the small number of budgets and the simplicity of the links between them.

The disadvantages of this model include:

Due to the limitations of the models, it is not possible to take into account all the factors influencing it (for example, insufficient funding may lead to non-fulfillment of the production plan, etc.);

As a result, low reliability and effectiveness of budgets.

4. Budgeting of financial flows

This budgeting model is perhaps the most common in Russia. This is due to the following advantages:

High implementation speed, due to a small number of budgets and links between them;

As a result, the relatively low cost of implementation;

This model is particularly suitable for growing Russian economy when liquidity management is more relevant than profitability or cost management.

Thus, in terms of the price / result ratio, this model can be recommended for use in an emerging market, when liquidity comes first, and profitability does not require operational control. The resulting budget for this model is the Cash Flow Budget (CFB). The purpose of its compilation is the management of the solvency (liquidity) of the enterprise. BDDS reflects the movement of funds (cash flow) by types of funds and directions of their movement.

The BDDS structure allows you to plan, take into account and analyze cash flows in the following sections:

Orientation of cash flows.

Structures of payments and receipts in the directions of their movement.

Volumes of payments and receipts (cumulative, by groups of articles and by individual articles).

Intermediate and final results (difference between receipts and payments).

Remaining funds.

5. Budgeting of inventory flows (Profitability Management)

The inventory flow budgeting model is more complex than previous budgeting models. However, it is this model that allows you to manage the most important indicator for the enterprise - the profitability / profitability of the main activity.

The advantages of this model are:

Relatively low cost and implementation time (compared to the integrated model);

The ability to manage the most important indicator of the enterprise's activity - profit from the main activity, which is especially important in the medium and long term;

Possibility effective management the main areas of economic activity - sales, production and purchases;

Ability to control and manage direct and indirect costs.

The disadvantages of such a budget model include the following:

Insufficient complexity, and as a result, the dependence of the results on unaccounted factors (financial flows, investment and other expenses);

The financial results are not complete and reliable - they are not confirmed by changes in the assets and liabilities of the enterprise (balance sheet).

The resulting budget for this model is the Core Activity Budget (BAB). The structure of the AML reveals:

The structure (sources of formation) of the enterprise's income from its core activities.

The structure (direction of expenditure) of the enterprise's expenses for the main activity.

Volumes of income and expenses (total, by groups of items and by individual items).

Difference (i.e. gross profit or loss) between operating income and operating expenses for the period.

Although formally not all models correspond to the generally accepted concept of budget management, they all have features that distinguish budgeting as a separate management technology:

1. Existence of financial responsibility centers (although in some cases there is no overarching financial structure);

2. The presence of interconnected budgets that allow planning activities and taking into account the fact in the same sections;

3. Ability to refine and optimize the system.

It is the choice of the optimal budget model at the stage of developing financial and budget structures that will allow the enterprise not only to reduce time and costs, but also to get the maximum result, expressed in increasing business transparency and improving financial performance in as soon as possible, as well as provide an opportunity for further growth and development of the system.

2.3 Budgeting as a method of financial management in an enterprise

In order for the company's activity to be efficient and effective, it is very important to carry out forecasting of financial performance, as well as constant financial assessment of performance results, as one of the most important components of business functioning. Financial evaluation of activities is carried out with the help of budgets.

Therefore, budgeting is a management technology designed for financial planning of a company's activities, developing optimal solutions and monitoring the achievement of the company's financial goals.

One of the proven world practice effective ways enterprise management in market conditions is the budgetary method of management. This method in various versions is used by almost all large and medium-sized enterprises (firms), and has recently become popular in small businesses.

The essence of the budget management method is the idea that all the activities of an enterprise consist in balancing income and expenses, the places of occurrence of which can be clearly defined and assigned to the head of the appropriate rank.

Budget - financial document, reflecting a series of planned events that will happen in the future, i.e. forecast of future financial transactions. The budget system allows the manager to evaluate in advance the effectiveness of managerial decisions, optimally allocate resources between departments, outline ways for personnel development and avoid a crisis situation.

The main idea of business is to achieve maximum financial results with minimal resources spent on achieving this result.

It is budgeting that allows you to effectively earn profits, manage resources and financial flows of the company. The main purpose of budgeting is a forecast of the financial condition of the company, expressed in the form of spending and cost limits, an assessment of the standards for the use of company resources, as well as the movement of cash, material flows and labor flows. It is with the help of budgets that a company evaluates and predicts its financial results, assets used, sources of their formation, cash flow and funding needs or the possibility of withdrawing funds.

Budgeting is the basis of planning in a company, because with the help of budgets it is possible to determine the financial feasibility of implementing planned activities to achieve the strategic and tactical goals of the company. During financial evaluation The feasibility of the company's plans is carried out by determining the limiting factors that exist in the company. Such factors can be both the area occupied by the company and the possibility of providing resources, including financial ones.

3. Budgeting at the present stage of economic development

3.1 Advantages and disadvantages of introducing budgeting at the present stage

The attractiveness of budgeting for Russian enterprises in the current environment is as follows:

* Firstly, budgeting has replaced the previously existing planning system, when the indicators "descended from above", when the connection between planning and finance was difficult to trace. True, a business plan has appeared, but it solves somewhat different tasks than financial planning of the enterprise;

* secondly, for newly created enterprises it is important from the very beginning to present the development prospects and the required investment volumes, to have financial estimates and projected financial indicators. There are a lot of such enterprises in the conditions of the development of market economy in Russia;

* thirdly, budgeting makes it possible to exercise financial control, make operational management decisions. In conditions of instability in the economy, this is an important factor.

But there are certain difficulties that arise when introducing budgeting at enterprises in Russia. Initially, this is a lack of information. There are no structures that would collect the information necessary for the implementation of budgeting and analyze it in all its diversity. The information that the accounting department has can be used for financial reporting, but it is not enough - it is not suitable either in form or in terms of regulations for budget management.

This makes it impossible to use ready-made Western financial planning technologies in the existing information environment.

According to analysts, the logic of economic planning has now undergone major changes.

For many businesses in Russian Federation Until now, planning is carried out on the principle of "from what has been achieved." If earlier this principle was implemented in the form of an increase in production volumes compared to the previous year, now it is expressed in the desire to load production capacities as much as possible. This is done most often, regardless of whether all manufactured products can be sold, whether the enterprise can receive money for it in full.

The budgeting system involves a multivariate analysis of the financial consequences of the implementation of the plans, provides for the analysis of various scenarios for changing the financial condition of the enterprise, assessing financial stability in a changing environment.

If budgeting was carried out conscientiously and effectively "yesterday", carried out conscientiously "today" and will be carried out in the same way after, then this will bring numerous benefits to both the organization and its employees. Unless, of course, the decision to introduce a budgeting system at an enterprise was made not for the purpose of following fashion (the term "budgeting" has indeed gained some popularity recently), but in order to increase the efficiency of the company's functioning in market conditions.

3.2 Automation of budgeting in the enterprise

Successful automation of budgeting depends on how accurate and timely financial information will be received by managers and owners of the enterprise.

Automation of budgeting is possible only when there is something to automate, that is, the enterprise has adopted the procedure for compiling and approving budgets and maintains management accounting to obtain actual data on budget execution. A budgeting automation project, regardless of whether it is carried out in Excel or in a specialized system, is built according to the same rules as any implementation project. automated system. It requires a clear formulation of goals, the definition of resources with which the project can be implemented, the establishment of deadlines and results of the work done.

Computer programs for budgeting should:

Adapt to the specifics of the organization, rebuild over time and with changing goals and strategies;

Adapt to the financial structure of the company, as well as to its possible changes;

Have mobile regulations that allow the implementation of a rolling budgeting system (continuous adjustment of budgets);

Have a familiar interface, focus on mass rather than unique software solutions and platforms.

To further improve budgeting in the company, it is necessary to:

1. Development of a methodology for the preparation, control and analysis of consolidated budgets and subbudgets.

2. Formation of an accounting block, which includes a system of accounting and operational accounting, approximation of accounting reporting formats to planned (budget), the use of international financial accounting standards.

3. Continuous training of the organization's specialists in various budgeting approaches to enhance the intellectual potential of the staff and their inclusion in work related not only to the mechanical filling of budget forms, but also to the development of specific proposals for the implementation of the budgeting system in the organization.

Creation of an organizational block of the process, including:

organizational structure,

The budgeting management system is a regulation on the interaction between the services of the administrative apparatus and structural divisions, as well as a material structuring system based on budgeting.

Organization of sufficient software and providing technical means to implement the budgeting process. All these requirements must be kept in mind, both when choosing software and when implementing it (Fig. 1).

Automation of budgeting is useless if there is no full-fledged budgeting (as a methodology and management technology) at the enterprise. Therefore, before thinking about which computer program to give preference to, it is worth understanding the organization of budgeting as a management technology.

Rice. 1. The system of intra-company budgeting and its automation

The choice of a computer program is usually the final stage in budgeting, but often many managers start with it. Especially when it comes to the so-called rolling planning, which provides for monthly or even weekly adjustments to previously drawn up budgets for six months - a year, and in the future for three years ahead with a monthly or even ten-day breakdown of the budget project. And the specifics of each business dictates its own financial structure, its own, unique budget formats, its own modes of consolidating the budgets of structural divisions into the company's consolidated budgets, its own budget regulations, etc. We have to deal with a long and painstaking refinement of standardized software products.

At present, in Russia, two types of programs can be distinguished for the implementation of intra-company budgeting tasks:

Programs involving budgeting for international standards type “Success +”, SAP/R3, “Project Expert”, “Altinvest”, “Red Director”;

Various versions of programs focused on the forms of established financial statements (for example, Galaktika, 1C.Enterprise, BEST - Office, etc.).

Programs of the first type are designed to work in a large geographically distributed company, they are reliable and designed for a variety of functions. From the point of view of medium and small companies, the disadvantages are poor adaptation to our conditions, high cost (from 40 to 200 thousand US dollars), cumbersomeness (to make changes to the budget model, the intervention of a specialist from the supplier company is required).

Systems of the second type may well compete with programs of the first type, as functionality, and in terms of technological level, especially since their cost and labor costs for their implementation are significantly lower than those of Western counterparts.

In the market of software products designed for budgeting and financial management of companies, three price ranges can be distinguished according to the cost of the system:

Cheap software systems (up to 1000 US$);

Products of average cost (from 1 to 10,000 US dollars);

Expensive systems (over $10,000).

The cost of the product is understood as the average cost of purchased system licenses a typical company- a client. The characteristics of a number of budgeting software products are presented in Appendix No. 1 [see. Appendix].

4. Optimization of the capital structure of the enterprise

Job conditions:

You are the financial manager of Center JSC, which produces food products. The balance sheet was formed as of January 1, 2009 (Table 2).

Required:

1. Analyze the structure of assets and liabilities of the balance sheet, calculate analytical indicators and draw preliminary conclusions about the policy of forming assets and financial resources, financial stability, solvency and liquidity.

2. Form a conclusion on the financial position of the enterprise.

	Beginning of period	End of period

I. Non-current assets
Intangible assets:
residual value
initial cost

Construction in progress
Fixed assets:
residual value
initial cost

Long-term financial investments:
accounted for using the equity method
other financial investments
Other noncurrent assets
Total for Section I
II. current assets

productive reserves
unfinished production
finished products
Accounts receivable for goods, works, services:
net realizable value
Accounts receivable according to settlements:
with a budget
on advance payments
according to accrued income

Current financial investments
Cash and cash equivalents:
in national currency
in foreign currency
Other current assets
Total for Section II

	Beginning of period	End of period
I. Equity
Authorized capital
Extra capital
Reserve capital
Retained earnings (uncovered loss)
Total for Section I
II. long term duties
Long-term bank loans
Other long-term liabilities
Total for Section II
III. Short-term liabilities
Loans and credits
Accounts payable for goods, works, services
Short-term settlement obligations:
on advances received
with a budget
on extrabudgetary payments
for insurance
Table continuation
payroll
with participants
Other current liabilities
Total for Section III

1. Let's analyze the balance sheet of JSC "Center", which produces food products, formed as of January 1, 2009 (Table 3).

Table 3. Analysis of the dynamics and structure of the asset of Center JSC

Name of articles	Absolute values	Relative values
	for the beginning of the year	at the end of the year	change (+,-)	beats weight at the beginning of the year	beats the weight. at the end of the year	growth rate, %
I. Non-current assets
Intangible assets
Construction in progress
fixed assets
Long-term financial investments
Other noncurrent assets
Total for Section I
II. current assets

Accounts receivable for goods
Accounts receivable for settlements
Other current receivables
Current financial investments
Cash
Other current assets

Statement of budgeting at the enterprise and the role of the budgeting system at the enterprise

The stages of setting up a budgeting system may go beyond each other, but in general, when using a consistent approach, they do not change their order much. Consider the main stages of setting up a budgeting system in an enterprise.

Development and implementation of the correct organizational structure of the company in order to set up a budgeting system at the enterprise

The easiest, but at the same time the most expensive way to build a new organizational structure is to engage an outside specialist, or rather, a special team that is able to immediately identify narrow places looking at the situation "from the side". But the most effective and cheapest way to solve this problem is working group, formed from highly qualified internal specialists who are personally interested in the transition to effective budgeting.

In general, the effect of a correct budgeting system will be quickly felt at all levels of the organization, so an extremely important stage of work is to inform staff about the benefits that they will receive from the implementation. new system. Naturally, ordinary employees are not so much concerned about the global efficiency of the company as personal, on which bonuses and profits are tied. That is why, so that the employee understands that general system efficiency will positively affect his work in particular, it is necessary to explain in detail to the staff what benefits a particular employee will receive from setting up a budgeting system.

As a rule, organizations develop not the most optimal scheme of organizational structure, which, by and large, is a consequence of historical disorganization. Key Processes can be more or less customized, but smaller ones, for example, functional connections, clarity of hierarchy, rules of interaction and subordination between departments, go by themselves. Why?

On the side of logic here is the fact that any work with the budgeting system does not bring money to firms "here and now", therefore, at the level of insufficiently qualified management, the unspoken rule "do not pay attention" is often adopted. This question rests on the horizon strategic planning and the scale of development that the firm wants to achieve.

If a firm employs, for example, ten or fifteen employees, and the actions of each of them can be controlled at the level of simple communication, an imperfect organizational structure will not cause much damage to the activity. But as soon as development reaches a certain milestone, for example, a distributed branch network and a multi-level hierarchy with a large number of processes and relationships of personnel work appear, if the organizational structure is not logical, clearly regulated and, most importantly, does not work as a single mechanism, chaos arises in the enterprise .

A third-party management specialist, as a rule, immediately sees problem areas and can, at a minimum, indicate to management with a “blurry look” what should be paid attention to in the first place. It often happens that internal users of the organizational structure do not see banal errors, because, in general, the processes work, and no one thinks about their optimization, especially when it comes to a company in which no one is motivated to achieve results. Surprisingly, there are an overwhelming majority of such companies on the market today.

Organizational structure optimization is the first and major step for setting up a budgeting system in the company, as well as for the subsequent improvement of the budgeting system in a continuous cycle. Regardless of how the current organizational structure is assessed and the subsequent implementation of a new one, either by external consultants or by creating an internal working group, the goals will be the same.

Their essence can be formulated as follows:

Analysis of the current situation;
Development of effective improvements;
Implementation in practice;
Control of implemented innovations.

At the same time, excesses should be avoided in terms of developing an organizational structure, therefore, when creating it, it is worth adhering to the basic principles of effective management:

Ease of execution of organizational structure levels;
Understandability of the structure for staff;
Order in relationships and functional subordination.

Figure 1. Organizational structure of the company.

It is necessary to adhere to these principles in order to ensure the greatest possible transparency of the structure for the future harmonious development of the enterprise. Remember, the simpler the organizational structure, the easier it will be to develop a budget management system.

As an example, let's give a block diagram of an organizational structure that is optimal for the process of further development.

Figure 2. Block diagram of the organizational structure of the company.

Creation of a financial structure to improve the implemented budgeting system at the enterprise

In order to achieve productive budgeting, it is necessary to introduce a model in the company that will distribute the responsibility for the execution of budgets, the efficiency of spending resources, and will make it possible to control and analyze the ways in which expenses and incomes arise in the enterprise. To do this, on the basis of the approved organizational structure, a financial structure is formed, in which the company is presented in the format of interconnected centers of financial responsibility.

Financial responsibility centers are assigned classification types depending on the business task of the business unit in question. Each business unit belongs to one of the CFD types in the financial structure:

Investment centers (CI - investment centers)
Income centers (CD - income centers)
Margin centers (CMD - marginal income centers)
Profit centers (CP - profit centers)
Cost centers (CZ - cost centers)

Each CFD leads a "double life", acting as a business unit and as a center of financial responsibility in the format of its budget at the same time. In this state of affairs, a balance is achieved that is necessary for any effective organization: the unit begins to be responsible for the implementation of its tasks within the framework of business functions, within the conditions of budgeted values.

Each CFD within the framework of the financial structure of the enterprise has a person responsible for the results of its work. This is usually the local manager of the department, for example, the head of sales, the head of the warehouse, the director of procurement, etc. Sometimes the person responsible for the results of the FRC may not be directly related to the performance of local work functions, for example, the chief architect.

Development of an enterprise budget system

Depending on the financial structure of the company, the management and the working group for the implementation of the budget management system make mutually agreed decisions on what types of budgets a particular company needs. The system of budgets establishes budgetary relationships, levels of budgeting, as well as internal structure budgets according to directories of budget items. A decision is made to localize the budget system in the Central Federal District and consolidate local budgets into a single enterprise budget (consolidated budget). Each approach has its pros and cons, and a specific method is chosen based on the logic of the situation and applicability at a particular enterprise.

Each CFD manages its budget on the basis of planned and actual data of its activities, and financial service on their basis forms the consolidated forecast budgets:

Cash flow budget for liquidity management;
Income and expense budget to support and manage the company's profitability at the planned level;
Management balance sheet for business value management.

The data from these budgets together enable management to assess the operating condition of the enterprise, present targets, predict short-term and long-term trends, and, if necessary, plan measures that can help achieve goals. If the planning and forecast analysis has shown that the goals are achievable and the company's efficiency corresponds to the planned level, the local level budgets are approved and begin to be executed. If the data and plans are not fully consistent, the budgets are adjusted, and a search is made for the optimal business scheme for the company.

After the forecast budget is formed and approved, we can say that it performs the function of a central management document, which is mandatory for all CFDs and the company as a whole. Talking about it in broad sense words, you need to understand that any budget is not the ultimate truth, but rather a planned, predictive and at the same time non-linearly changing value that shows us in dynamics what is happening to the business at all levels. A deep analysis of the forecast and the fact of the budget helps to make important decisions in advance that can significantly increase business efficiency and anticipate the development of some global problems financial and managerial nature.

Development and implementation of accounting policies, analysis systems, preparation and implementation of regulatory documentation

The accounting policy in the company is designed to determine the rules for the implementation and integration of accounting with management and production accounting, depending on the internal policy of the organization in this matter. Accounting policy it is rational to implement consistently, avoiding discrepancies at the level of divisions and achieving consolidation in all matters of budgetary activity.

Regulatory documents are used to fix clear requirements and rules that provide unambiguous interpretation, helping to avoid controversial points. The composition of the documentation in different companies can vary greatly, but in the working version it should contain provisions on all subjects of the budget process, regulations for subprocesses and official functions personnel:

Regulations for the work of financial responsibility centers;
Accounting policy regulation;
Regulations on budgets of all levels;
Regulations on the work of the financial service;
Guidelines for budget recipients;
Efficiency assessment regulation;
Financial analysis regulation.

Documentation is developed once, but work with it continues continuously. Rational changes and additions that contribute to the optimization of fixed procedures should become the norm in the organization.

At the same time, it is very important to avoid changing the composition of the regulatory documentation when changing the staffing. The principle of the "new broom" does not apply to the enterprise budgeting system under any circumstances. Any new employees, from the rank and file to the CFD managers, are integrated into the approved budget system (of course, with the possibility for them to make rational improvements for consideration).

The main routes for setting up a budgeting system

The budgeting process at an enterprise can actually be represented in the form of three possible routes (methods):

Top - Bottom (Top - Down)
Bottom - Top (Bottom - Up)
Circular route (Top - Down + Bottom - Up)

The budgeting route from top to bottom assumes that the prerogative of choosing budgetary policy is given to the top management.

This method cannot be called the most successful, if only because with such an organization of the budget system, proposals from the lower level are completely ignored or minimally taken into account. On the one hand, such a budgeting route should fully correlate budgets with the strategy and global goals of the organization, but this does not happen due to the lack of communication between the higher and lower departments of the organization.

At the same time, a clear disadvantage of this approach is the complete absence or extremely low motivation of lower-level managers in achieving any goals due to the complete lack of personal interest.

It is typical for enterprises with a multi-level or distributed structure, which need to combine lower budgets into the budget of the first level. Let's say Insurance Company, which has a branch network, with this model, will collect the budgets compiled by each additional office to the budget of a group of offices (by district), then to the budget of the city, region, and then by analogy to the center. In such a system, the function and responsibility of the middle management level increases, which must ensure the identity of articles and the compliance of indicators.

One of the serious drawbacks of this budgeting route is the frequent inconsistency of indicators on the ground, the increase in the duration of the budget process, as well as the possibility of manipulating indicators at the local level in order to ultimately profit from the implementation of biased indicators.

With the circular method, which can be called the route of the budget process, the greatest balance of indicators on the ground and tasks from the center is achieved.

First the center gives lower levels guidance on goals and objectives, usually using historical and analytical information in their requirements, after which local units form their budgets, comparing them with the ability to fulfill the tasks of top management. On the final stage budgets are adjusted, and all links in the budget chain receive an agreed set of indicators and values. Internal consistency is the greatest benefit of this budgeting method.

Figure 3. Route of the budget process.

Unified Budget or Core Budget

The unified budget is the main document of the budgeting system. Its main task is to enable managers at different levels to make rational management decisions.

A single or, as it is also called, the main or general budget contains all the consolidated information in a block format, covering the entire enterprise and demonstrating all internal relationships.

A big budget, as it is commonly referred to in the business world, is the sum total of the work of the entire budget process, working groups, meetings, plans, and decisions that are aimed at ensuring the fulfillment of the company's goals and its well-being. It also helps to solve all operational issues, starting with the possibility of reallocating resources and recalculating reserves, ending with making decisions on the search for unplanned credit resources.

Over time, the function of the main budget also changes: if at the beginning of the period it is a plan of expenses and income, then at the end it performs the function of a control and accounting tool that allows you to evaluate the results achieved and draw important management conclusions.

The main characteristics of the unified (main) budget of the enterprise

Defined budget period, meaning a clear time frame for planning, executing and monitoring the results of the budget system.
Forecast component– information about trends and forecasts that the company's management is guided by.
Update frequency- the budget is constantly changing in accordance with the situation, updates of information made by departments, as well as according to the regulations. For example, after a checkpoint of a period - a week, a month or a quarter.
Variability of the development of the situation- a parameter included in the unified budget as a range, the value of which may differ depending on the market situation (prices for raw materials, exchange rates, etc.)
Reality of information- the budget contains real items of expenditure, and not numbers that are pleasing to the eye of management. Its task is to reflect the real consolidated information on the company.
Analytics external factors - taking into account information from outside, which can have a significant impact on internal processes or the business as a whole.
Consistency across organizational levels- clarity and unambiguity of interpretations of values and tasks by all participants in the process, the same involvement and motivation.
Consistency for decision making. The budget is not normative document, its composition and form may be very different from the forms of financial statements. Therefore, the freedom of the form of the budget should become its advantage, which ensures that information is systematically included in the budgeting plan, and only the information that is needed for making managerial decisions.

Figure 4. Characteristics of the unified budget.

Example of entering budgets in WA: Financier

In our article "Budgeting system in the enterprise" a description of the general principles of the budgeting process in the enterprise is given. In this case, we will consider the possibilities of "WA: Financier" for the formation of budget reports. To do this, as an example, we implement a simple budget scheme:

Budgets in "WA: Financier" are entered using the corresponding "Budget" document:

The following options are available to speed up and facilitate the entry of planning data:

Setting up filling patterns;

Filling according to payment schedules in contracts;
Filling in one Budget of data for several periods, articles and their analytics;

Adjustment of dependent revolutions.

Based on the results of the settings above, the following dependent planned turnovers were automatically generated:

Completed budgets are subject to approval. WA:Financier has the ability to set up various Approval Routes in user mode without programming. Depending on the different conditions, different route options are configured.

For each approver, which is determined automatically depending on whether the approved budget falls into the conditions shown above, when setting up the route, the parameters for its approval are specified:

After that, when you start the approval route for a specific budget for all users, it becomes available information about the current approval status:

Thus, according to the entered planning data - several budgets for different CFDs of one company, it is possible to form the final consolidated budget using different mechanisms of the system:

The report "Budget execution (consolidated report)" allows you to configure the output of data on the necessary selections for several CFDs, organizations, periods, etc.;
The "Custom Reports" mechanism allows you to configure, for example, "Consolidated BDR".

Conclusion

The introduction of a budgeting system, as can be seen from the components of this issue considered in the article, is only the beginning of work. We can say that this is the first stone in the foundation of the formation of a productive financial and business management system of the organization in terms of resources. Further, it will be necessary to continuously improve the budgeting system and modernize it over time, because it is the work with budgeting in dynamics that is the main guarantee or, rather, a prerequisite for the success of a company striving for effective management.

It is obvious that the construction of a budgeting system is an extremely complex multifaceted process, which has sufficient variability depending on the internal specifics of the company, the composition of its management and the link of performers, as well as the characteristics of its business units.

In large companies, it makes sense to implement more complex budgeting systems due to the need for more thorough budget planning, which applies to all levels of the giant company.

Mid-segment companies can start their budgeting practice with small functional systems that focus on internal efficiency and optimization of production processes in the company. So setting up a budgeting system can be relevant at any enterprise, regardless of the business area or company size.

Budgeting in the business world is a key management tool. If you compare budgeting with a material object, then you should choose a Swiss knife, in which, in addition to the knife itself, there are all kinds of devices for all occasions. It is the same with budgeting: it allows not only to plan work and control the company's business, but also creates opportunities for timely analysis, modeling, forecasting and efficiency improvement. Ultimately, a high-quality budgeting system at an enterprise becomes the key to a high competitiveness of a business.

What opportunities does budgeting provide to the management of the enterprise? Budgeting: issues, functionality and stages of implementation

What is meant by budgeting?

What are the tasks of budgeting in an enterprise?

Why do many companies still not use budgeting?

How to deal with these problems?

Implementation of budgeting

Functions of budgeting and financial analysis

Stages of budgeting implementation

Implemented budgeting system in action

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