Budgeting cycles. What is an enterprise budget? Budget and plan Budget period. Budget cycle. III. completion phase

FEATURES OF THE BUDGET PROCESS IN INDUSTRY

The structure of the enterprise's consolidated budget and the technology of budget planning are largely determined by industry. This is due to the specifics of business operations and the reproduction cycle of companies in various industries: industrial enterprises, banks, trading companies, service organizations. In industry, the capital turnover cycle is the most “representative” in comparison with all other sectors of the economy: there are stages of supply (purchase of material resources), production, storage, marketing of manufactured products, settlements with counterparties both for purchased raw materials and supplies, and for sales products. This distinguishes industrial enterprises, for example, from banking and trade, where there is no production process.

The budget process is not limited to the stage of drawing up the consolidated budget. Time budgeting technology is a continuous “three-cycle” cycle, where planning for the next period is carried out on the basis of a plan-fact analysis of budget execution for the reporting period (see Diagram 1).

Thus, budget cycle - this is the period of time from the beginning of the 1st stage of the budget process, that is, the preparation of the consolidated budget, until the completion of the 3rd stage - plan-fact analysis of the execution of the consolidated budget. Ideally, in a company, the budget process should be continuous, that is, the completion of the analysis of budget execution for the reporting period should coincide in time with the development of the budget for the next period.

The main condition for ensuring the continuity of the budget process is the correct methodology for conducting an “end-to-end” plan-fact analysis of budget execution, on the basis of which figures for the budget indicators of the next period are formed, that is, plan-fact analysis is both the starting and the final stage of the budget cycle, which, thus, “returns to normal” (otherwise it would not be called cycle).

Basic feature of the financial cycle(circulation of working capital) in industry is the presence of a production stage (transformation of material resources into finished products). This results in a cost planning system for an industrial company that is more complicated than in other sectors of the economy. Thus, in banking and trade, most added value- these are operating costs, which are determined by the general conditions for maintaining a business (availability of office space, personnel, etc.). At the same time, the main task of companies in these industries is to ensure that the difference between “outgoing” and “incoming” value flows, that is, margin(whether it be the difference in the purchase and sale prices of goods in trade or the difference in attracting and placing financial resources in the banking sector) covered operating costs. Optimizing transaction costs, in general terms, comes down to fulfilling its role as an intermediary redistributing “incoming” commodity or financial flows with a minimum of expended resources.

In industry, everything is much more complicated. Here, at the production stage, a qualitative change in “incoming” flows occurs, that is, the value of “outgoing” flows is determined not only by the market (external), but also by the internal (production) policy of the enterprise. The relationship between the cost and structure of purchases of material resources and revenues from the sale of finished products in industry is much more complex than between interest on lending and interest on deposits of depositors in the financial sector. Despite the fact that the financial cycle of an industrial enterprise includes both the supply stage and the implementation stage, it is production accounting and planning that determine the specificity and complexity of the budget process in industry compared to other industries.

The bank's financial assets and, to a lesser extent, goods for resale by trading organizations are liquid assets and can be easily transferred. If the situation on the financial market suddenly changes, the bank can relatively painlessly “transfer” funds from short-term commercial loans to the stock market. An industrial enterprise that has invested in the production of a specific type of product will find itself in a much more difficult situation.

The presence of a production stage determines the specifics of not only the financial, but also the investment cycle (the cycle of renewal of fixed capital). Unlike other industries, where the investment cycle is fairly impersonal (that is, fixed assets for the most part relate to the general conditions for maintaining a business and are fairly standard for all organizations in the industry), in industry there is a large Part of the investment relates to the production of certain types of products, that is, it is extremely individualized. There is a close connection here not just between the profitability of the business as a whole and the return on investment, but also between the profitability of specific types of products and the return on specific investments in the production of these types of products.

In relation to the management process, the industry-specific features of an industrial enterprise are reflected in the fact that such a complex segment of the budget process appears here as production accounting and planning, covering the stage of transformation (transformation) of “incoming” resources into “outgoing” commodity flows. The presence of production accounting and planning determines the relatively greater complexity, both methodological and practical, of the budgeting system in industry compared to other areas of the economy and the variety of accounting systems used, depending on the technological features of the production process for enterprises in various industries.

So, if a trading company simply, by definition, uses the custom accounting method, then in industry, within the same company, two or more accounting methods may be simultaneously present. For example, in a vertically integrated oil company, crude oil production is simultaneously accounted for using a process-by-process (simple) method; when processing into petroleum products, a step-by-step accounting method is used; and when selling petroleum products, a per-order accounting method is used.

Thus, the presence of a production stage and, as a consequence, production accounting and planning is the fundamental feature that determines the entire technology of the budget process at an industrial enterprise.

Structure of the consolidated budget of an industrial enterprise.

Consolidated budget of an industrial company consists of three budgets first level:

- operating budget;

Investment budget;

Financial budget.

Operating budget focuses on modeling future expenses and revenues from current transactions for the budget period. The object of consideration of the operating budget is the financial cycle of the enterprise. Operating budget (current, periodic, operational)- a system of budgets that characterize income and expenses for operations planned for the coming period for a segment or individual function of the organization.

The planned form of the operating budget is a statement of financial results (profits and losses). Budget of income and expenses Helps manage operational efficiency. It plans the company's profit, profitability, productivity. Based on information on the execution of this budget, one can judge the effectiveness of both the enterprise as a whole and individual areas of business ( Kochnev) .

The operating budget consists of a number of budgets(sub-budgets) second level:

1.sales budget;

2. product production plan (the company produces a single product);

3. cost budget for basic materials;

4. budget for labor costs of key personnel;

5. overhead budget;

6. cost budget;

7. budget for administrative and marketing costs;

In turn, some second-level budgets are made up of third-level budgets, third-level budgets can break up into fourth-level budgets, etc., depending on the scale and variety of business operations of the enterprise. For example, the budget for production costs is a 3rd level budget and is included in the production budget, and the budget for direct material costs is a 4th level budget, which is part of the budget for production costs. Thus, the consolidated budget of an industrial enterprise is characterized by a multi-stage, hierarchical structure

Investment budget considers issues of renewal and disposal of capital assets (fixed assets and investments, long-term financial investments), which forms the basis of the investment cycle. The planned form of the budget is an investment report.

Financial budget consists of a cash flow budget, a capital investment budget and a budget (aggregate) balance.

Target financial budget- planning the balance of cash receipts and expenses, and in a broader sense - balance of working capital and current liabilities to maintain the financial stability of the enterprise during the budget period. The planned form of the financial budget is a cash flow statement and a report on changes in financial condition. Cash flow budget reflects incoming and outgoing cash flows and shows the solvency of the enterprise: whether it has enough money for current activities, whether there are funds left for development. ( Kochnev) .

If from the BDR the General Director understands how much profit his enterprise will earn, then the BDDS shows when this money will come in and when it will be spent.

For example, a company can sell products at high profit margins and have huge profits, but at the same time provide suppliers with significant deferred payments. In this case, the manager will see an excellent profit in the income and expense budget, but in the cash flow budget the influx of funds will be minimal. If at the same time the company needs to pay its own suppliers, it may find itself in a difficult financial situation despite good sales. Appropriate budgets will make it possible to see this situation already at the planning stage and take preventive measures in advance.

“Output” results of the budget process are the planned forms of consolidated financial statements:

- “output” form of the operating budget;

- “output” forms of the financial budget;

- “output” form of the investment budget;

Balance is an integral “output” form that combines the results of all three main budgets that make up the enterprise’s consolidated budget.

Forecast balance reflects the value of the property owned by the enterprise (assets) and the sources of funds for the formation of this property (liabilities). The balance sheet shows how the company's capital changes, its structure, and from what sources of financing the company lives.

If an enterprise runs several types of business that are relatively independent sources of profit, each business must have its own budgets. This is necessary in order to correctly evaluate the results of activities in each area and ensure effective management. Otherwise, it may turn out that one type of business (or one product) lives at the expense of another business (product).

FEATURES OF THE BUDGET PROCESS IN INDUSTRY

The structure of the enterprise's consolidated budget and the technology of budget planning are largely determined by industry. This is due to the specifics of business operations and the reproduction cycle of companies in various industries: industrial enterprises, banks, trading companies, service organizations. In industry, the capital turnover cycle is the most “representative” in comparison with all other sectors of the economy: there are stages of supply (purchase of material resources), production, storage, sales of manufactured products, settlements with counterparties both for purchased raw materials and supplies, and for sales. products. This distinguishes industrial enterprises, for example, from banking and trade, where there is no production process.

The budget process is not limited to the stage of drawing up the consolidated budget. Time budgeting technology is a continuous “three-stroke” cycle, where planning for the next period is carried out on the basis of a plan-fact analysis of budget execution for the reporting period (see Diagram 1).

Τᴀᴋᴎᴍ ᴏϬᴩᴀᴈᴏᴍ, budget cycle - this is the period of time from the beginning of the 1st stage of the budget process, that is, the preparation of the consolidated budget, until the completion of the 3rd stage - plan-fact analysis of the execution of the consolidated budget. Ideally, in a company, the budget process should be continuous, that is, the completion of the analysis of budget execution for the reporting period should coincide in time with the development of the budget for the next period.

The main condition for ensuring the continuity of the budget process is the correct methodology for conducting an “end-to-end” plan-fact analysis of budget execution, on the basis of which figures for the budget indicators of the next period are formed, that is, plan-fact analysis is both the starting and the final stage of the budget cycle, which, thus, “back to square one” (otherwise it wouldn’t be called cycle).

Basic feature of the financial cycle(circulation of working capital) in industry is the presence of a production stage (transformation of material resources into finished products). This results in a cost planning system for an industrial company that is more complicated than in other sectors of the economy. Thus, in banking and trade, most added value- these are operating costs, which are determined by the general conditions for maintaining a business (availability of office space, personnel, etc.). At the same time, the main task of companies in these industries is to ensure that the difference between “outgoing” and “incoming” value flows, that is margin(whether it be the difference in the purchase and sale prices of goods in trade or the difference in attracting and placing financial resources in the banking sector) covered operating costs. Optimization of transaction costs, in general terms, comes down to fulfilling its role as an intermediary, redistributing “incoming” commodity or financial flows, with a minimum of expended resources.

In industry, everything is much more complicated. Here, at the production stage, a qualitative change in the “incoming” flows occurs, that is, the value of the “outgoing” flows is determined not only by the market (external), but also by the internal (production) policy of the enterprise. The relationship between the cost and structure of purchases of material resources and revenues from the sale of finished products in industry is much more complex than between interest on lending and interest on deposits of depositors in the financial sector. Despite the fact that the financial cycle of an industrial enterprise includes both the supply stage and the implementation stage, it is production accounting and planning that determine the specificity and complexity of the budget process in industry compared to other industries.

The bank's financial assets and, to a lesser extent, goods for resale by trading organizations are liquid assets and can be easily transferred. If the situation on the financial market suddenly changes, the bank can relatively painlessly transfer funds from short-term commercial loans to the stock market. An industrial enterprise that has invested in the production of a specific type of product will find itself in a much more difficult situation.

In relation to the management process, the industry-specific features of an industrial enterprise are reflected in the fact that such a complex segment of the budget process appears here as production accounting and planning, covering the stage of transformation (transformation) of “incoming” resources into “outgoing” commodity flows. The presence of production accounting and planning determines the relatively greater complexity, both methodological and practical, of the budgeting system in industry compared to other areas of the economy and the variety of accounting systems used based on the technological features of the production process for enterprises in various industries.

So, if a trading company simply, by definition, uses the custom accounting method, then in industry, within the same company, two or more accounting methods may be simultaneously present. For example, in a vertically integrated oil company, crude oil production is simultaneously accounted for using a process-by-process (simple) method; when processing into petroleum products, a cross-cutting accounting method is used; and when selling petroleum products, a per-order accounting method is used.

Moreover, the presence of a production stage and, as a consequence, production accounting and planning is the fundamental feature that determines the entire technology of the budget process at an industrial enterprise.

Structure of the consolidated budget of an industrial enterprise.

Consolidated budget of an industrial company consists of three budgets first level:

- operating budget;

Investment budget;

Financial budget.

The operating budget consists of a number of budgets(sub-budgets) second level:

1.sales budget;

2. product production plan (the company produces a single product);

3. cost budget for basic materials;

4. budget for labor costs of key personnel;

5. overhead budget;

6. cost budget;

7. budget for administrative and marketing costs;

In turn, some second-level budgets are made up of third-level budgets, third-level budgets can break up into fourth-level budgets, etc., based on the scale and variety of business operations of the enterprise. For example, the budget for production costs is a 3rd level budget and is included in the production budget, and the budget for direct material costs is a 4th level budget, which is part of the production costs budget. However, the consolidated budget of an industrial enterprise is characterized by a multi-stage, hierarchical structure

Financial budget consists of a cash flow budget, a capital investment budget and a budget (aggregate) balance.

If the General Director understands from the BDR what profit his enterprise will earn, then the BDR shows when this money will come in and when it will be spent.

For example, a company can sell products at a high profitability and have huge profits, but at the same time provide suppliers with significant deferred payments. In this case, the manager will see an excellent profit in the income and expense budget, but in the cash flow budget the influx of funds will be minimal. If at the same time the company needs to pay its own suppliers, it may find itself in a difficult financial situation despite good sales. Appropriate budgets will make it possible to see this situation already at the planning stage and take preventive measures in advance.

“Output” results of the budget process are the planned forms of consolidated financial statements:

‣‣‣ - “output” form of the operating budget;

‣‣‣- ʼʼweekendʼ financial budget forms;

‣‣‣ - “output” form of the investment budget;

‣‣‣ balance - an integral “output” form that combines the results of all three basic budgets that make up the enterprise’s consolidated budget.

Forecast balance reflects the value of the property owned by the enterprise (assets) and the sources of funds for the formation of this property (liabilities). The balance sheet shows how the company’s capital changes, its structure, and from what sources of financing the company lives.

If an enterprise runs several types of business that are relatively independent sources of profit, each business must have its own budgets. This is extremely important in order to correctly evaluate the results of activities in each area and ensure effective management. Otherwise, it may turn out that one type of business (or one product) lives at the expense of another business (product).

Budget cycle - concept and types. Classification and features of the category "Budget cycle" 2017, 2018.

An integral part of management accounting is budgeting, the main goal of which is to generate information for enterprise management in order to increase profits with the financial stability of the organization. Budgeting is one of the components of planning, so it must be present in the organization's management system, and specifies the planning goals.

Budgeting (in a narrow interpretation of this term) is a method of short-term projection of future values of financial statements, based on the fact that each of their articles is assigned a person responsible for its execution.

“Methodological recommendations for the development of an enterprise’s financial policy”, approved by order of the Ministry of Economy of the Russian Federation dated October 1, 1997 No. 118, budgeting defined as part of financial planning. This document, in particular, states that the most important element of ensuring sustainable production activities is the financial planning system, which consists of: a system of budget planning for the activities of structural divisions of the enterprise, a system of consolidated (comprehensive) budget planning for the activities of the enterprise.

Budgeting is the process of drawing up and implementing this document in the practical activities of the company.

The quality of budgeting is determined by the structure of budgets, the composition of budget items, the consistency of budgets with each other, as well as the activities of managers participating in the budgeting system.

The company's operational management system (budget management) by responsibility centers with the help of budgets allows you to achieve your goals through the most efficient use of resources. An important point in budget management is motivation, which uses a mechanism for accounting for deviations from planned indicators of costs and results and delineating responsibility for these deviations. In the economic literature, for ease of understanding the material, the terms “budgeting” and “budgetary management” are very often used as synonyms.

In order for the budgeting process to begin to operate effectively, it is necessary to carry out a number of preparatory work. The organization of budgeting includes the following main points.

1. Design and approval of the financial structure of the organization. This is necessary in order to delegate authority in terms of drawing up specific (private) budgets to responsible organizational units of the enterprise management system.

2. Development of the structure of the organization’s general budget. This stage includes work on the formation of classifiers of budgets, budget items, and the imposition of types of budgets on the organizational units of the enterprise management structure.

3. Approval of budget policy. The budget policy itself is similar in form to the accounting policy and is formed with the aim of developing and consolidating the principles for the formation of indicators of budget items and methods for their assessment.

4. Development of budgeting regulations. This includes: determining the budgeting time period, planning procedures, budget formats, and the action program of each participant in the budgeting process.

The extent to which the budgeting process functions depends on the amount of effort and expense put into it. In large companies with a complex organizational structure, this issue is dealt with by a specially created budget committee– a collegial body consisting of representatives of all budget centers. The specifics of the activities of budget committees depend on the characteristics of the organizations themselves, but the following issues are common to all: the transformation of strategic goals into a series of operating budgets, the organization of working meetings, the approval of functional budgets and their integration into a single master budget, the review of reports on the implementation of budgets and further analysis deviations, resolution of conflicts arising in the process of functioning of the budget system.

Summarizing the above, we can present a comprehensive planning and budgeting system at an enterprise in the form of a diagram (diagram 1.4). Full-fledged budget planning at an enterprise is impossible without taking into account the business cycle, industry cycle, enterprise development cycle and product life cycle. Analysis of various models of growth and stabilization of an enterprise has shown that at each stage of development of a company, its own financial policy must be formed and the data presented by management accounting must be formed, taking into account the fundamental model of development.

The main factors that must be taken into account when constructing an appropriate budgeting models, should be divided into the main intra-company factors that influence the construction of the budgeting model, and factors that are important in the owner’s influence on the budgeting process.

Scheme 1.4

The first type of factors includes the following types of resources:

1) financial resources, both own and borrowed;

2) human resources, especially at the executive and senior management levels;

3) business - resources, including relationships with customers and suppliers, production process, market share, reputation, etc.4

4) information resources.

Factors that matter in the owner’s influence on the budgeting process consist of the following elements:

1) the owner’s goals in the business;

2) the degree to which the owner delegates his powers to employees;

3) the owner’s ability to combine personal goals with the goals of his enterprise;

4) entrepreneurial abilities of the owner of the company.

When an enterprise moves from one stage of development to another, the significance of these factors changes. In the early stages, it is the entrepreneurial talents of the owner that are fundamental to the development of the company.

The budgeting model at this stage should be aimed at balancing the personal goals of the owner and the goals of the company. At the same time, the founder of the company must be prepared for possible personal financial losses in the name of the interests of the company.

Table 1.1

Additional models used in budget formation will be:

1) dynamic model - The principle of construction is continuous measurement at certain intervals, reflecting the result and efficiency of the enterprise’s economic activities. In a market economy, efficiency is measured mainly through return on equity, that is, the result of activity obtained by the owner of capital;

2) static budget– this is a budget in which specific amounts of income and expenses are planned for each budget item;

3) flexible budget– a budget, the indicators of which can be adjusted depending on the level of activity. This may be a variable budget, the data of which are fixed amounts plus variables from the volume of activity. This could be a step budget consisting of a series of detailed financial budgets.

Flexible budgets are well illustrated by break-even charts, which clearly show the break-even point and the results of the enterprise’s activities;

4) budget in kind- a budget formed not in monetary terms, but in physical indicators, such as units of finished products, materials, number of employees or hours worked. The budget in physical terms is one of the components of the control system at the enterprise.

The choice of an additional budgeting model is also determined by the goals facing the enterprise. In practice, additional models for constructing budgets are used as auxiliary models for selecting the most appropriate option for the consolidated budget.

The budgeting system, like any system, cannot function without meeting certain conditions; in this case, these conditions are certain components (components), which together constitute the budgeting infrastructure.

The first component of the budgeting infrastructure is the analytical block, which includes a certain methodological basis for the development, control, and analysis of the execution of the consolidated budget.

The second component is the accounting block of the budget process. To implement budgeting, an enterprise must have a management accounting system, that is, the availability of all quantitative information about the activities of an economic entity, allowing it to track the real financial condition, the movement of inventory, financial flows and business operations.

Any operating enterprise (firm) has its own organizational structure, which is determined by a set of individual services and divisions, which include employees engaged in certain activities (responsibility centers). The interaction of all structural divisions is carried out on the basis of internal regulations and instructions that make up the internal document flow of the enterprise. The presence of an organizational structure and a management system between departments constitutes the organizational block of the budget process.

In larger companies, the process of budgeting and monitoring the execution of the consolidated budget would be very difficult to carry out without the use of an automated accounting system. When using software and hardware, the level of efficiency and quality of work increases. Consequently, the software and hardware block of the infrastructure includes all software and hardware tools used at a given enterprise and involved in the budget process.

Thus, the infrastructure of the budget process consists of four closely interconnected components (Diagram 1.5), which complement each other and are practically inseparable.

The enterprise budget, like the state budget, is always developed for a certain time interval, which is called budget period. An enterprise can simultaneously draw up several budgets that differ in the duration of the budget period. The correct choice of the duration of the budget period is one of the important prerequisites for the effectiveness of the budget planning system as a whole.

Scheme 1.5

Budgeting concerns not only the period to which the plan relates. The development of the plan itself should begin before the start of the budget period, and control procedures should be completed after it. All these components form the budget cycle, which includes the following stages:

1) setting goals for the budget period;

2) collecting information for developing a draft budget;

3) analysis and synthesis of collected information, formation of a draft budget;

4) assessment of the draft budget and its adjustment;

5) budget approval;

6) budget execution and possible adjustment of its indicators;

7) current and final analysis of deviations;

8) presentation of a report on the implementation of the budget and analysis of the achievement of the organization’s goals for the reporting period;

All these stages are combined into three main phases: planning, implementation and completion. The tables below show the activities of all participants in the budget process in the three phases of the budget cycle.

Thus, the budget cycle itself lasts much longer than the budget period, since it begins before the start of the budget period and ends after its completion, when the implementation phase of the next cycle is already underway.

1. Planning phase.

2. Execution phase.

3. Completion phase.

In order for the budgeting process to begin to operate effectively, it is necessary to carry out a number of preparatory work.

Budgeting organization includes the following main points:

1. Design and approval of the financial structure of the organization. This is necessary in order to delegate authority in terms of drawing up specific (private) budgets to responsible organizational units of the enterprise management system.
2. Development of the structure of the organization’s general budget. This stage includes work on the formation of classifiers of budgets, budget items, and the imposition of types of budgets on the organizational units of the enterprise management structure.
3. Approval of budget policy. The budget policy itself is similar in form to the accounting policy and is formed with the aim of developing and consolidating the principles for the formation of indicators of budget items and methods for their assessment.
4. Development of budgeting regulations. This includes: determining the budgeting time period, planning procedures, budget formats, and the action program of each participant in the budgeting process.

The extent to which the budgeting process functions depends on the amount of effort and expense put into it. In large companies with a complex organizational structure, this issue is dealt with by a specially created budget committee - a collegial body consisting of representatives of all budget centers. The specifics of the activities of budget committees depend on the characteristics of the organizations themselves, but the following issues are common to all: the transformation of strategic goals into a series of operating budgets, the organization of working meetings, the approval of functional budgets and their integration into a single master budget, the review of reports on the implementation of budgets and further analysis deviations, resolution of conflicts arising in the process of functioning of the budget system.

The enterprise budget is always developed for a certain time interval, which is called the budget period. An enterprise can simultaneously draw up several budgets that differ in the duration of the budget period. The correct choice of the duration of the budget period is one of the important prerequisites for the effectiveness of the budget planning system as a whole.

1) setting goals for the budget period;
2) collecting information for developing a draft budget;
3) analysis and synthesis of collected information, formation of a draft budget;
4) assessment of the draft budget and its adjustment;
5) budget approval;
6) budget execution and possible adjustment of its indicators;
7) current and final analysis of deviations;
8) presentation of a report on the implementation of the budget and analysis of the achievement of the organization’s goals for the reporting period;
9) development of recommendations for adjusting the budget of the current period and developing future budgets.

1. Planning phase.

Stage	Who performs	Activities of the budget committee
1. Setting goals for the period	Top management	Develops regulations for its work for the next budget cycle
2. Gathering information to develop a draft budget	Marketing, technological and economic services	Approves budget documentation forms. Forms of its presentation and criteria for assessing budget implementation.
3. Analysis and synthesis of collected information, formation of a draft budget	Managers responsible for functional budgets	Provides coordination of budget centers
4. Assessing the draft budget and adjusting it if necessary	Budget Committee	Reviews the draft budget
5. Budget approval	Head of the organization	Communicates information to those responsible for implementing the budget.

2. Execution phase.

3. Completion phase.

However, it should be noted that the budgeting process in modern enterprises faces many problems.

Implementing a budgeting system is a complex and lengthy process. When it is implemented, the management structure changes, and this is always associated with a change in the functional responsibilities of personnel. This means that problems arise related to possible resistance on his part. In addition, a negative factor is the lack of understanding among project participants of the methodology and principles of budgeting.

The lack of a sufficient number of networks and computers in a company leads to problems with data exchange between departments, enterprises and various software products. Also, the implementation of budgeting is hampered by incorrectly selected software and hardware, or their illiterate adaptation. Many information systems operate unreliably, the probability of an error is very high, and the time required to correct it can be counted in days.

The lack of tools and the rather long period of passage of documents between the upper and lower levels leads to the fact that there is no time left for the final approval of budgets.

One of the main difficulties encountered when implementing budgeting is the lack of a standard budget form, which must be strictly followed. Such forms have to be developed in such a way that, on the one hand, they are convenient and informative, and on the other, not very cumbersome.

budgeting trade cycle

According to Western management theories, all planned procedures are called “budgeting”. In the theory of enterprise management in Russia, budgeting is understood as short-term (operational) planning.

The main goal of budgeting is the generation of information for enterprise management in order to increase profits with the financial stability of the enterprise. Budgeting is one of the components of planning, therefore it is necessary in the enterprise management system and specifies planning goals.

Budgeting in the narrow sense is a method of short-term projection of future values of financial statements, based on the fact that a specific person is responsible for the execution of each article.

Methodological recommendations for the development of an enterprise's financial policy, approved by order of the Ministry of Economy of the Russian Federation dated October 1, 1997 No. 118, define budgeting as part of financial planning. In this document.
In particular, it is said that the most important element of ensuring sustainable production activities is the financial planning system, which consists of a system of budget planning for the activities of structural divisions of the enterprise and a system of consolidated (comprehensive) budget planning for the activities of the enterprise.

We will proceed from the fact that budgeting is the process of drawing up and implementing budgets in the practical activities of an enterprise.

The quality of budgeting is determined by the structure of budgets, the composition of budget items, the mutual consistency of budgets, as well as the quality of the activities of managers participating in the budgeting process.

The operational system of enterprise management (budget management) by responsibility centers with the help of budgets allows you to achieve your goals with the help of budgets allows you to achieve your goals through the most efficient use of resources. An important point in budget management is motivation using a mechanism for taking into account deviations from planned indicators of costs and results and delineating responsibility for these deviations. In the economic literature, the terms “budgeting” and “budgetary management” are often used interchangeably.

In order for the budgeting process to become effective, it is necessary to carry out preparatory work. Let's name the main ones.

1. Design and approval of the financial structure of the enterprise. This is necessary in order to delegate the authority to draw up specific (private) budgets to the responsible units of the enterprise management system.

2. Development of the structure of the general budget of the enterprise. Work is being carried out to create classifiers of budgets, budget items, and “impose” types of budgets on organizational units of the enterprise management structure.

3. Approval of budget policy. The budget policy itself is similar in form to the accounting policy and is developed with the aim of determining and consolidating the principles for the formation of indicators of budget items and methods for their assessment.

4. Development of budgeting regulations. This is the establishment of a budgeting time period, planning procedures, budget formats, and an action program for each participant in the budgeting process.

In large companies with a complex organizational structure, the development of budgeting regulations is carried out by a specially created budget committee - a collective body consisting of representatives of all budget centers. The specifics of the activities of budget committees depend on the specifics of the company, but the following issues are common to all: transformation of strategic goals into a series of operational budgets; organization of workshops; approval of functional budgets and their integration into a master budget; review of budget execution reports and further analysis of deviations; resolution of conflicts arising in the process of functioning of the budget system.

Full-fledged budget planning at an enterprise is impossible without taking into account the business cycle, industry cycle, enterprise development cycle and product life cycle. Analysis of different models of growth and stabilization of an enterprise showed that at each stage of its development its own financial policy and data provided by management accounting should be formed in accordance with the fundamental model of enterprise development.

The main factors that must be taken into account when constructing an appropriate budgeting model should be divided into the main intra-company factors that influence the construction of the budgeting model, and factors that are important in the owner’s influence on the budgeting process.

The main intra-company factors are the following types of resources:

1. financial results (own and borrowed);

2. human resources (especially at executive and senior management levels);

3. business resources (relationships with customers and suppliers, production process, market share, reputation, etc.);

4. information resources.

5. Let us list the factors that are important in the owner’s influence on the budgeting process:

1. goals of the owner in business;

2. the degree of delegation by the owner of his powers to employees;

3. the owner’s ability to combine personal goals with the goals of his enterprise;

4. entrepreneurial abilities of the owner of the enterprise.

The model for constructing a budget at these stages should be aimed at balancing the personal goals of the owner and the goals of the enterprise. The founder of an enterprise must be prepared for possible personal financial losses in the name of the interests of the enterprise.

When creating budgets, you can use the following additional models:

1) a dynamic model based on continuous measurement of the efficiency of the enterprise’s economic activities at certain intervals. Efficiency is measured through return on equity indicators, i.e. the result of activity obtained by the owner of capital is determined;

2) a statistical budget, in which specific amounts of income and expenses are planned for each budget item;

3) a flexible budget, the indicators of which can be adjusted depending on the level of activity (variable budget, the data of which are fixed amounts plus variables depending on the volume of activity; step budget, consisting of detailed financial budgets). Flexible budgets are well illustrated by break-even charts, which clearly show the break-even achievements and results of the enterprise’s activities;

4) budget in physical terms (in physical indicators, such as units of finished products, materials, number of employees or hours worked), which is an element of the control system at the enterprise.

The budgeting system, like any system, cannot function without meeting certain conditions; when applied to the budgeting process, these conditions are certain components (components), which together constitute the budgeting infrastructure.

The second component is the accounting block of the budget process. For budgeting, an enterprise must have a management accounting system, i.e., a system of quantitative information about the activities of an economic entity that allows tracking the real financial condition, the movement of inventory, financial flows and business transactions.

Any operating enterprise has its own organizational structure - a set of individual services, divisions, which include employees engaged in one or another activity (responsibility centers). The interaction of all structural divisions is carried out on the basis of internal regulations, in particular instructions that make up the internal document flow of the enterprise. The organizational structure and management system between departments constitute the third component of the budget process - the organizational block.

In large companies, the process of budgeting and monitoring the use of the consolidated budget is impossible without an automated accounting system. When using software and hardware, the level of efficiency and quality of work increases. Therefore, the fourth component of the budgeting infrastructure is the software and hardware block. These are all the software and hardware used at a given enterprise and involved in the budget process.

The enterprise budget, like the state budget, is always developed for a certain period of time, which is called the budget period. An enterprise can simultaneously draw up several budgets that differ in the duration of the budget period. The correct choice of budget period is one of the important prerequisites for the effectiveness of the budget planning system as a whole.

Budgeting extends not only to the period to which the plan relates. Plan development should begin before the start of the budget period, and control procedures should be completed after it. These components form the budget cycle, which includes the following stages:

1 setting goals for the budget period;

2 collection of information for the development of a draft budget;

3 analysis and synthesis of collected information, formation of a draft budget;

4 assessment of the draft budget and, if necessary, its adjustment;

5 approval of the budget and ongoing adjustment of its indicators;

6 budget execution and ongoing adjustment of its indicators;

7 current and final analysis of deviations;

8 presentation of a report on the implementation of the budget and analysis of the achievement of the enterprise’s goals for the reporting period;

Budget planning system

When developing a business plan, the following are drawn up:

· sales estimate, or product sales estimate - forecasting and planning sales volume is the first stage and the most crucial moment of the entire budget preparation process; the decision on sales volume for the coming year is made by the top management of the enterprise based on analysis in the field of marketing, taking into account the available production capacity;

· the production estimate corresponds to the estimated sales volume and the required amount of inventory. The estimated production volume in physical terms consists of the expected sales volume plus the required amount of product inventories at the end of the year minus product inventories at the end of the year. Production budget data forms the basis of the production schedule, which is built taking into account seasonal fluctuations in demand;

· estimate of direct material costs, or estimate of the purchase and use of basic materials. This estimate determines the timing of the purchase and the quantity of raw materials, materials and semi-finished products that must be purchased to fulfill the production plan. The required quantity of materials is multiplied by the expected unit price of the material and the total amount of material costs is determined. Using data on the planned amount of purchases of material resources and the payment scheme, a schedule of expected payments is formed, which is a table broken down by quarter and type of material resource;

· cost estimate for remuneration of key production personnel (direct labor costs). When drawing up this estimate, the planned volume of production, the labor intensity of manufacturing a unit of product and the cost of one man-hour are taken into account. The amount of direct labor costs must be coordinated with the available labor resources. These calculations are detailed in time, a breakdown of planned indicators is carried out by quarter and a schedule of expected expenses for remuneration of key personnel for the year is drawn up;

· the production overhead, or indirect, cost estimate is a detailed plan of the estimated indirect production costs necessary to maintain production capacity in a state that ensures the implementation of the production plan. It includes the costs of maintaining and operating machinery and equipment, depreciation and repair costs of fixed assets, costs of their insurance, heating and lighting costs, wages of workers engaged in production maintenance, etc. When drawing up an estimate of general production costs in their composition distinguishes between fixed and variable costs and determines the rates at which the variable part of overhead costs is formed;

· the estimate of the cost of goods sold is compiled on the basis of summary data on physical and cost estimates taken from estimates of direct material costs, labor costs and overhead costs, as well as projected values of production inventories of raw materials, materials and finished products;

· the current cost estimate includes estimates of commercial and management (general and administrative) expenses. Commercial expenses include: wages of sales employees, advertising costs, transportation costs, telephone payments related to the sale of products, and other costs of selling products. Management expenses consist of salaries of administrative staff, salaries of other employees, payments for energy and lighting, depreciation of office equipment, telephone costs, insurance, office supplies, etc. If necessary, additional detailed estimates can be prepared for the main items of operating expenses for each division of the enterprise.

· the profit and loss estimate is prepared on the basis of data contained in sales estimates, cost of goods sold estimates and operating expense estimates. To this is added information about other profits, other expenses and the amount of income tax.

First, the planned level of profit before tax is calculated. An integral part of these calculations is the determination of the cost per unit of goods sold, as well as the cost of inventories of materials and finished products. Next, the amount of income tax and profit remaining at the disposal of the enterprise (net profit) is determined. Below are calculations for the expected use of profits by dividing into the capitalized and consumed part. Capitalized profit is used for reinvestment (business development) and the creation or increase of reserve capital, and consumed profit is used for the payment of dividends, social benefits to staff, charitable purposes, etc.;

· the capital cost estimate reflects the directions of capital investments and sources of investment resources;

· the cash flow estimate is drawn up after drawing up all of the above estimates and represents a plan for the receipt of funds and payments during the future period by month or decade;

· the estimate of assets and liabilities (planned balance sheet) is prepared on the basis of the expected balance sheet prepared before the end of the reporting period. Items in this balance sheet are increased or decreased taking into account transactions planned for the coming year.

The cost of non-current assets increases by the cost of purchased equipment and decreases by the amount of planned depreciation charges.

Inventories of materials and finished goods must be in accordance with the inventory budget.

Accounts receivable are determined according to the following scheme: accounts receivable in accordance with the balance sheet of the previous year + planned sales volume - cash inflow from sales in the planning period.

The balance of funds is formed in the estimate of their movement.

Retained earnings are increased by the amount of net profit received in the profit and loss account.

Accounts payable are calculated according to the following scheme: accounts payable to suppliers according to the balance sheet of the previous year + payments for basic materials in the planning period – cash inflow from sales in the planning period.

In the process of implementing a business plan, constant control over costs plays an important role. A special place is occupied by the assessment of the activities of departments and the organization as a whole. Responsibility center managers constantly compare actual costs with planned costs, identify deviations and analyze them.

There are several responsibility centers:

· a cost center, within which the manager is responsible for the costs under his control;