Federal Agency for Education

State educational institution

higher professional education

"Tula State University"

Department of Finance and Management

Abstract of lectures on the discipline "Budgeting at the enterprise"

Specialty of training: 080507 "Management of the organization"

Form of study: full-time, part-time

The abstract of lectures was compiled by Associate Professor, Candidate of Economics Blagovoy S.O.

Reviewed and approved at a meeting of the Department of FIM

Head department ____________ E.A. Fedorova

Lecture number 1. Theoretical Foundations of Budgeting

The main goals and objectives of planning the activities of the enterprise

The role of budgeting in financial activities enterprises

History of the budgeting process

Basic budgeting methods

Budget classification

Stages of the budget process of a commercial organization.

Budget execution in a commercial organization

Budget control

Analysis of deviations of the actual budget from the planned one

1.1. Basic concepts, goals and objectives.

Over the past few years, the promotion of budgeting has been given great attention. Budgeting is a distributed system of coordinated management of the activities of enterprise departments. Budgeting - a collective process - allows you to coordinate the activities of departments within the enterprise and subordinate it to a common strategic goal. Unbiased budgets and indicators will help managers first specify the tasks set, then analyze the state of affairs at the enterprise, that is, assess the presence of profit or loss, money in the account, the feasibility of introducing new technologies, cost recovery, etc.

A budget is a quantitative plan in terms of money, prepared and adopted before a certain period of time, usually showing the planned amount of income to be achieved and / or expenses to be incurred during this period, and the capital that must be raised to achieve this goal.

In domestic practice, the budget is a plan in monetary terms adopted for one year, broken down into four quarters. As a rule, the budget is divided into months, and sometimes even weeks. The budget serves as a tool for managing the income, expenses and profits of the enterprise.

The purpose of budgeting is to provide the reproduction process with appropriate financial resources both in terms of volume and structure. To achieve this goal, the following main tasks are distinguished:

1) definition of the object of planning;

2) development of a system of financial plans with the allocation of operational, administrative and strategic plans;

3) calculation of the necessary financial resources;

4) calculation of the volume and structure of internal and external financing, identification of reserves and determination of the volume of additional financing;

5) forecast of income and expenses of the enterprise.

The purpose of the budget is to plan, allocate resources, measure performance, control, analyze and manage the movement of financial resources. The key role of money as a universal resource leads to the fact that through the budget it is possible to manage all departments and all aspects of the enterprise.

The current budgeting system has a number of problems:

1) the planning process begins with production, and not with the sale of products;

2) when planning, the costly pricing mechanism prevails, the price is formed without taking into account market prices, based on the full cost and the rate of return.

3) the planning process is delayed in time, which makes it unsuitable for taking operational management decisions, and often, a sharp discrepancy between the planned data and the actual ones.

Planning is necessary in order to understand where, when, how and for whom you are going to produce and sell products, what resources are needed to achieve your goals. Planning is necessary in order to achieve the effective use of attracted resources, that is, to solve the problem of maximizing profitability indicators. Without the implementation of an elementary financial plan and financial control, and therefore, there is no real management of the organization.

1.2. The role of budgeting in the financial activities of the enterprise

In a market economy, fierce competition increases the importance and relevance of financial planning. Business cannot prosper without developed financial plans (budgets) and without control over their implementation. In developed countries, planning is one of the most important tools for regulating the economy. Changes in business conditions necessitate the formation of a planning system based on the synthesis of Russian practice and the achievements of world economic thought.

In many commercial organizations, planned work is carried out only for a short period of time (3 months) and comes down to determining a more or less exact amount of advance tax payments. However, a too short planning horizon eventually turns into a barrier to business development and leads to an emphasis on current problems. Therefore, even more importance should be given to strategic and forward planning.

1.3. The history of the development of the budgeting process.

Under the conditions of the administrative-command system for the formation and distribution of cash income and savings, their grouping in centralized and decentralized funds of funds was determined through directive planning as one of the methods of management, including finance.

In enterprises, independent financial plan began to be drawn up practically since 1979, that is, from the announcement of a course towards full cost accounting and self-financing. Until that time, financial plans were developed and approved by specialists in the highest echelons of government. In a planned economy, in financial planning, emphasis was placed on distribution and redistribution processes, the very purpose of the financial plan was to identify unused resources and determine the amount of payment to the budget as the sum of the excess of enterprise income over expenses. With a lack of funds, enterprises received appropriations from the budget. Significant financial resources were depersonalized and directed through the channels of the budgetary system and through sectoral ministries to finance enterprises included in the centralized plan.

The destruction of the centralized planning system led to the fact that the state budget was separated from the budgets of enterprises, which was facilitated by the introduction of self-supporting and self-financing at enterprises.

The experience of the functioning of the socialist economy in our country also testifies to the broad possibilities of planned management that have manifested themselves. In solving such large-scale tasks as: the industrialization of the country, the distribution of productive forces, the structural transformation of the national economy, the creation of a powerful military-industrial complex. But the degree and level of centralization did not take into account real differences, the specifics of development, the diversity of economic and other ties between regions, industries, and enterprises, which were assigned the role of mere executors of plans.

The market economy does not reject planning, since a plan is nothing more than a properly formalized management decision. The market is even more demanding on the quality of financial planning, since in a market economy for all miscalculations in financial planning for all adverse consequences, the responsibility lies directly with a commercial organization. It is she who can be bankrupt in the case of an illiterate budget.

1.4. Basic budgeting methods

At present, it is practically impossible to isolate the techniques and methods of any science as inherent exclusively to it. In the practice of financial planning, the following methods are used:

1) economic analysis;

2) coefficient;

3) normative;

4) balance sheet;

5) discounted cash flows;

6) method of multivariance (scenarios);

7) economic and mathematical modeling.

The starting point in financial planning is an economic analysis of the use of financial resources over the past period. This method should be considered not as a simple comparison of reporting data with planned ones to identify deviations, but as a way to determine the main patterns, trends in the movement of natural and cost indicators, and internal reserves of the enterprise.

The coefficient method allows you to assess the financial condition of the enterprise for the past period. Without knowledge of the past, it is impossible to assess the future. However, long-term plans will not be accurate without a clear strategy.

The reality of planned targets increases when financial calculations are carried out using the normative method, which has been known for a long time. The essence of the normative method of planning lies in the fact that, on the basis of pre-established norms and technical and economic standards, the need of a commercial organization for financial resources and their sources is calculated. The system of norms and standards includes:

Federal regulations;

Regulations of the constituent entities of the Russian Federation;

local government regulations;

On-farm standards of commercial organizations.

The essence of the balance method is to coordinate costs with sources of coverage, to link all sections of the plan with each other, as well as financial and production indicators. As a result, mutual coordination of material, labor and financial resources is ensured.

The discounted cash flow method, based on practical logic, is used in the preparation of financial plans, investment projects and serves as a tool for predicting the totality of cash receipts and payments distributed over time. The concept of cash flows is based on the calculation of the present (present) value of expected cash inflows and outflows. Using the discounted cash flow method allows you to identify the result of financial decisions without reference to traditional assumptions accounting. Assessing the predicted changes in financial flows for a certain period of operation of a commercial organization based on the time factor, one can come to conclusions that differ from traditional economic analysis.

The method of multivariance (scenarios) is to develop several options for financial plans (for example, optimistic, pessimistic and most probable). The selection criteria can be: net present effect, return on investment.

The method of economic-mathematical modeling makes it possible to find a quantitative expression of the relationship between financial indicators and the factors that determine them. This relationship is expressed through the economic and mathematical model. It represents an accurate mathematical description of the economic process. The model can be built on a functional or correlation relationship. A good planning model should have the following characteristics:

1) the results and initial assumptions must be reliable;

2) the model must have the possibility of improvement;

3) the model should take into account the relationship between investment decisions and sources of financing, dividend policy, production and the impact of these decisions on the value of commercial organizations;

4) the model must be flexible enough to be used in different situations;

5) the results of the model should be understandable to users, do not require special training from him.

The predictive method is one of the basic ones in developing the strategic line of a commercial organization. Forecasting is a long-term development of changes in the financial condition of the object as a whole and its various parts. This method consists in developing a complete set of alternative indicators and parameters that allow you to determine options for the development of the financial condition.

Course lecture summary« Budgeting»

Module 1. Methodological aspects of budgeting

1.1. Definition of budgeting. Basic concepts.

The main planning document in an enterprise is traditionally its business plan or, in the case of a state institution, a plan for its production and financial activities. It includes the following main components: service delivery plan, procurement plan for materials and services and services, organizational and technical measures plan, investment plan, planned cost, financial plan (income and expense budget, cash flow budget, planned balance).

At the same time, the establishment plans production, economic and financial indicators. Production indicators contained in production plans, and economic and financial are part of budgets.

Budgeting is a component of business planning covering the economic and financial performance of an enterprise/institution. Budgeting in a number of literary sources is called financial and economic planning, which, in general, correctly reflects its essence, but does not focus on a very important aspect of budgeting - responsibility for the implementation of financial and economic indicators.

The concept of budgeting in practice combines budget planning,economic planning and financial planning.

Estimated planning - this is the process of generating cost estimates by type public services and cost estimates of structural divisions. Planned and standard cost estimates are compiled for each type of service. According to the structural units, cost estimates for their maintenance in the planning period are compiled. In addition, budget planning of targeted activities should be organized across the institution.

economic planning- the process of planning the income and expenses of the enterprise by type, responsibility centers and areas of activity. It is a broader concept than budget planning, since it involves planning the revenue side and the economic result.

It is not entirely correct to talk about building a budgeting system at an enterprise or institution. We should talk about the development of the system of financial and economic planning that exists at each enterprise or institution. It can be developed in several directions:

Increasing focus on results

Improving the methodological validity of calculations

Increase in analytical sections in which planning and budgeting is carried out

Improving Simulation Speed

Improving the objectivity and validity of modeling

Reducing the complexity of production planning and budgeting procedures

Reducing the number of errors

Obtaining economic justifications for key decisions

This is not the whole list of areas in which budgeting can be developed. Here you can also add motivation, control over the expenditure of enterprise funds (treasury function), control over the progress of the budget process, etc.

Budgeting is considered in six aspects.

Organizational aspect gives an assessment of the degree of formalization and regulation of the budgeting process. It is clear that the higher the degree of regulation of procedures, the higher the predictability and manageability of the budget process.

coordinating aspect lies in the degree of coordination of the participants in the budget process. It is a consequence of a high degree of regulation of the budget process or effective operational work budget department.

Methodical aspect reflects the compliance of the budgeting methodology adopted in the company, its production features and financial and economic structure

Value motivational aspect of budgeting is that it makes it possible to stimulate the results of the manager's work. Incentives are provided by including a bonus fund in the subdivision's budget, which can be used to pay bonuses to employees of the subdivision and its head only if the budget is executed.

Integration aspect reflects the relationship various elements planning and budgeting systems, such as: target planning, production planning, economic planning, financial planning.

Information and analytical the aspect of budgeting is to provide management with information about the progress of the budget process and the progress of its implementation

1.2. The concept of effective management

The main direction of improving the process of providing public services is the focus on obtaining the final result.

From a methodological point of view, this can be represented as closed circuit management of the provision of public services. In the long term, the provision of any public service is carried out according to the cycle formulated in the framework of the concept of a balanced scorecard (Balanced Scorecard).

Each set of public services can be represented as a cyclical process passing through 4 areas of management (Fig. 1):

Area of ​​management of the financial and economic potential of the region

The area of ​​management of the innovative potential of the region in terms of the formation of new technologies for the provision of public services

The area of ​​management of public service delivery processes

The area of ​​customer relationship management, Feedback, the results of the provision of services

The application of such a concept, for example, to the education system suggests that the successful management and development of the system of educational services possible if the education system:

Sufficiently financed;

It is constantly improving;

Which improve the processes for the provision of educational services and the supporting processes of the education system (the improvement of which is also reflected in the improvement of the characteristics of the processes for the provision of educational services);

Improved processes provide more accurate and complete satisfaction of the needs of consumers of educational services: society, state, business.

Increasing the efficiency of meeting consumer requests after a certain time lag allows you to increase the growth rate of the regional economy, GRP and, ultimately, enter the next cycle of managing the educational services system

Figure 1. The cycle of results-based management in the education system

The concept of balanced management of the implementation of public services makes it possible to make the logic of actions transparent: financing - planning and development of improvements in the provision of public services - implementation of improvements - result (return, feedback, result in the socio-economic situation of the region, improving the living standards of the population, etc.). ).

The concept of balanced management is also applicable to the management of various departmental programs. For example, the development program human capital region, which can be implemented as part of the implementation of the strategy of socio-economic development, can be represented as a cyclic process, consistently implemented in 4 perspectives (Fig. 2):

Financing the processes of improving the socio-economic situation of human resources.

Management of innovative processes of development of human resources at the level of the subject of the Russian Federation.

Improving Human Capital Management Processes

Direct effect of human resource development

The direct effect of the development of human resources through the predicted time lag forms a long-term financial effect from human resource development. Thus, the control loop is closed by results.

Figure 2. Human capital management cycle

1.3. Performance budgeting

The concept of performance-based budgeting is one of the main elements of results-based management set out in the framework of the Administrative Reform in the bodies state power RF. This concept provides for the transition from budgeting the resource needs of budget recipients (BSP) to budgeting their action plan to achieve the key indicators set for them.

This concept has long been known in the commercial sector. In the concept of performance-based budgeting, two sequential processes are distinguished (Fig. 3):

Target, program and resource planning Economic and financial budgeting

Figure 3. Performance budgeting in a business enterprise

As part of the first process, a system of indicators for performers is fixed; based on this system, the executors determine an action plan to achieve the target values ​​of the indicators, then, according to the action plan, a resource assessment is given. This process, in fact, is program-targeted planning and project management, transferred to the operational time horizon.

Within the framework of economic and financial budgeting, the resource requirement is first calculated and cost estimates are determined, compared with income and the BDR is formed. The BDR determines the limits on the articles within which it is necessary to conclude contracts. Also, on the basis of the BDD, it is possible to draw up a BDDS by an indirect method. On the basis of draft contracts in accordance with the terms of payment and payment schedules, a BDDS is compiled by the direct method.

The logic of applying the RBB concept in the public sector is completely the same as the above, with the only difference being that for state institutions, the state assignment for the provision of public services is used as the goal-setting and main production document (for municipal institutions- respectively, the municipal task). Figure 4 shows a diagram of the organization of the budget process in a public institution.

Figure 4. Performance-based budgeting in a public institution

The budgeting process of a public institution is closely integrated into the budgeting process of the department to which this unit belongs. Schematically, the relationship between the department and the subordinate GI that arises during the formation of the budget of the GI is shown in Figure 5.

State budget" href="/text/category/gosudarstvennij_byudzhet/" rel="bookmark">budgeting of a state institution does not differ significantly from the budgeting of a commercial organization.

The Budget Code and the enacted instructions on budget accounting and reporting have significantly expanded the powers of institutions in terms of building an effective financial management system, the main element of which is the budget process.

Thus, the main vector of development of the budget process in public institutions- this is the introduction into their practice of effective methods and techniques of budgeting, tested and successfully applied in the commercial sector, of course, taking into account the peculiarities of state regulation of the activities of PIs. Such a need is dictated by the fact that it is at the enterprises of the commercial sector that there is an urgent need to maintain a competitive position in the market by: reducing costs, increasing labor productivity, including methods of stimulation and motivation, improving the efficiency of managing the assets of an enterprise, its investment resources.

In this regard, further, in module 2, the main methods and techniques of effective budget management from practice are outlined. commercial enterprises subject to adaptation to the conditions and features of the work of public institutions.

Introduction
Budgeting is one of the main tools for managing a company. It has long been actively used by companies as a technology financial planning. However, few companies consider budgeting as a real tool for managing business performance and achieving strategic goals and objectives. The most "advanced" Russian enterprises already successfully apply the budgeting procedure for planning their activities. However, practitioners with budgeting experience have questions that require clarification. What can we say about those domestic companies that are just now beginning to introduce budgetary processes.

The concept of strategically oriented budgeting is based on the Balanced Scorecard - BSC (BSC - Balanced ScoreCard), developed by R. Kaplan and D. Norton. According to strategic plan development, the company develops strategic maps that reflect its goals in four projections: "Finance", "Clients", "Business Processes", "Personnel". For each projection, key success factors and their indicators - key performance indicators KPI (KPI - Key Performance Indicator) are determined. In the Finance perspective, a company's strategy is either a revenue growth strategy or a cost reduction strategy. Key figures efficiency are indicators such as market share, business profitability, free cash flow etc. The achievement of these indicators characterizes the success of the implementation of the company's strategy. To calculate KPIs, budget indicators are formed - sales volume, direct and overhead costs by item, etc. The budget indicators of the divisions are integral part company budget figures. The implementation of budget indicators should be reflected in the motivation system, which is the link between the goals of the company and the goals of the staff.

For a company that wants to succeed in competition there must be a plan strategic development. Successful companies they create such a plan not on the basis of statistical data and their projection for the future, but based on a vision of what the company should become after a certain time. And only after that they decide what should be done today in order to be at the intended point tomorrow.

In the process of achieving the set goals, deviations from the given route are possible, therefore, at each “turn”, the enterprise has to calculate various options for its further actions. The tool for such calculations is budgeting.
1. The concept of budget and budgeting

Budget- it is a plan for a certain period in quantitative (usually monetary) indicators, drawn up with the aim of effectively achieving strategic targets.

Budgeting- it is a continuous process of drawing up and executing budgets.

Full-fledged intra-company budgeting, i.e., budgeting as a management technology, includes three components.

Budgeting technology, which includes financial planning tools (types and formats of budgets, a system of targets and standards), the procedure for consolidating budgets of various levels of management and functional purposes, etc.

Organization of budgeting, including the financial structure of the company (composition of accounting centers - structural divisions or businesses of an enterprise or company that are objects of budgeting), budgetary regulations and budgetary control mechanisms (budgeting procedures, their submission, coordination and approval, the procedure for subsequent adjustment, collection and processing data on budget execution), the distribution of functions in the management apparatus (between functional services and structural units of various levels) in the budgeting process, a system of internal normative documents(provisions, job descriptions etc.).

Consider the budgeting action plan:

1. Formulating the goals and objectives of budgeting as a management technology in accordance with the specifics of the company's business.

2. Principles of budgeting in the company.

3. Study of budgeting methodology.

4. Analysis of the financial structure.

5. Definition of types of budgets.

6. Definition of budget formats.

7. Approval of the budgetary regulations.

8. Distribution of functions in the control apparatus.

9. Drawing up a workflow schedule.

10. Automation of budgeting.

In the very general view The purpose of budgeting in a company is that it is the basis for:

Planning and making managerial decisions in the company;

Evaluation of all aspects of the financial viability of the company;

Strengthening financial discipline and subordinating the interests of individual structural divisions to the interests of the company as a whole and the owners of its capital.

At the same time, each company may have its own purpose of budgeting, depending on both the object of financial planning and the system of financial and non-financial goals. Therefore, speaking about the appointment of budgeting, it must be remembered that in each company, as a management technology, it can pursue its own goals and use its own own funds, your own toolkit.

First of all, budgets (financial plans) are developed for the company as a whole and for individual structural divisions in order to predict financial results, set targets for financial efficiency and profitability, limits on the most important (critical) expenses, justify the financial viability of the businesses that the company is engaged in, or investment projects it implements.

Budgets should give company managers the opportunity to conduct a comparative analysis of the financial efficiency of the work of various structural divisions, to determine the most preferable areas for further development economic activity, directions of structural restructuring of the company's activities (curtailment of some and development of other types of business), etc.

Budgets are the basis for decisions on funding levels various businesses from internal (due to reinvestment of profits) and external (loans, investments) sources. Budgets are designed to ensure constant control over the financial condition of the company, to provide its leaders with all the necessary information to judge the correctness of decisions made by the heads of structural units, to develop measures for operational and strategic adjustment of their activities.
2. Types and methods of budgeting

The budget covering the general activity of the enterprise is the general (general) budget. The purpose of the general budget is to summarize the estimates and plans of the various departments of the enterprise (private budgets).

The general budget consists of the following parts:

Financial (main) budgets (budget of profits and losses (budget of income and expenses), cash flow budget, forecasted (estimated) balance sheet);

Operating budgets (sales budget, direct material cost budget, management expenses and etc.);

Auxiliary budgets (tax budgets, capital (initial) cost plan, credit plan, etc.);

Additional (special) budgets (profit distribution budgets, budgets of individual projects and programs).

The main budgets are actually designed to manage the finances of the enterprise, evaluate financial condition business to perform all the management tasks discussed above. Master budgets allow managers to have all the information they need to evaluate financial position company and control over its change, to assess the financial viability of the business and the investment attractiveness of the project. That is why for full-fledged budgeting it is necessary to draw up all three main budgets.

Operational and auxiliary budgets are needed primarily to link natural planning indicators (kg, pieces) with cost indicators, to more accurately draw up basic budgets, determine the most important proportions, restrictions and assumptions that should be taken into account when drawing up basic budgets. If a set of basic budgets is mandatory (for a serious setting not only of financial planning, but in general of financial management in a company), then the composition of operating and auxiliary budgets can be determined by the heads of an enterprise or firm, primarily based on the nature of the goals and objectives facing it, the specifics of the business , as well as the level of qualification of employees of financial and planning and economic services, the degree of methodological, organizational and technical readiness of an enterprise or firm.

Special budgets (auxiliary and additional) are needed to more accurately determine targets and financial planning standards, more accurately take into account the peculiarities of local (regional) taxation. A set of special budgets, as well as operating ones, can be determined independently by the heads of an enterprise or firm, depending on the specifics of economic activity.

Depending on the purpose of comparison and analysis of performance indicators of the enterprise, budgets are divided into static (rigid) and flexible.

A static budget is an organization's budget for a specific level of business activity. Income and expenses are planned based on one level of implementation. All budgets included in the general budget are static. When comparing the static budget with the actual results achieved, the actual level of activity of the organization is not taken into account, i.e. all actual results are compared with those predicted regardless of the sales volume achieved.

Flexible budget - a budget that is not drawn up for a specific level of business activity, but for a certain range of it, i.e. There are several alternative options for the scope of implementation. For each possible implementation level, the corresponding cost amount is defined here. A flexible budget takes into account changes in costs depending on changes in the level of implementation, it provides a dynamic basis for comparing achieved results with planned indicators.

Flexible budgeting is based on the division of costs into variable and fixed. If costs are planned in the static budget, then in flexible budget they are calculated. Ideally, a flexible budget is prepared after analyzing the impact of changes in sales volume on each type of cost.

For variable costs, the rate is determined per unit of output, i.e. calculate the size of specific variable costs. Based on these norms, the flexible budget determines total amount variable costs depending on the level of implementation.

Fixed costs do not depend on the volume of production and sales, their amount remains unchanged for both static and flexible budgets.

Unlike financial reporting, budget forms are not standardized. Their structure depends on the object of planning, the size of the organization and the degree of qualification of the developers.

Budgets can be developed on an annual basis (broken down by months) and on the basis of continuous planning (during the 1st quarter, the estimate for the 2nd quarter is revised and an estimate for the 1st quarter is prepared next year, the budget is always projected a year ahead).

3. Basic functions of budgeting

Budgeting is the creation of a technology for planning, accounting and controlling money and financial results. The budget is a plan of the company's activities for a certain period, expressed in monetary terms. It performs various internal planning functions:

The budget as an economic forecast. The main planning decisions are made during the development strategic planning, and the budget formulation process is essentially a reworking of these projections.

Budget as the basis for control. As the budgeted plans are realized, it is necessary to record the actual results of the company's activities. Comparing the actual figures with the planned ones, it is possible to carry out the so-called budgetary control.

The budget as a means of coordination. The budget is a plan expressed in terms of cost in the field of production, procurement of raw materials or goods, sales of products, investment activities, etc.

The budget as the basis for setting the task. When developing a budget for the next period, it is necessary to make decisions in advance, before the start of activities in this period.

The organization of work on intra-company planning can be different. There are usually two types of budgeting:

According to the top-down method, the company's management determines goals and objectives, in particular, profit targets. Then these indicators are detailed and included in the plans of departments.

The “bottom-up” method involves the preparation of budgets at the level of departments, their submission to management for consideration, and the adoption of the budget.

In order for budgeting to bring real help to the company, it is necessary to compare forecasts with the results of budget execution, identify the causes of discrepancies and develop appropriate solutions.

The plan should be based on the goals that need to be achieved in the planning period, in other words, the tactical plan is a detailed system of the ultimate goals of the enterprise.

In order for a tactical plan to perform the functions assigned to it, it must meet the following requirements:

1. Flexibility of the plan (budgets, adjustment mechanism).

2. Completeness of planning (scenarios)

3. Support from top management

4. Complexity of planning (budget filing)

5. Responsibility for developing and implementing plans

6. Priority of current decisions over the plan (Plan-Fact analysis)

7. Accuracy, clarity, conciseness of the wording of the plan

8. Participation of performers in the development of the plan (several users, differentiation of rights).

4 . Advantages and disadvantages of budgeting
Like any phenomenon, budgeting has its positive and negative sides.

Benefits of budgeting:

It has a positive impact on the motivation and mood of the team;

Allows you to coordinate the work of the enterprise as a whole;

Budget analysis allows you to make timely corrective changes;

Allows you to learn from the experience of budgeting past periods;

Allows you to improve the process of resource allocation;

Facilitates communication processes;

Helps line managers understand their role in the organization;

Allows novice employees to understand the “direction of movement” of the enterprise, thus helping them adapt to the new team;

It serves as a tool for comparing achieved and desired results.

Disadvantages of budgeting:

Different perceptions of budgets different people(for example, budgets are not always able to help in solving everyday, current problems, do not always reflect the causes of events and deviations, do not always take into account changes in conditions; in addition, not all managers have sufficient training to analyze financial information);

Complexity and high cost of the budgeting system;

If budgets are not communicated to every employee, then they have little to no effect on motivation and performance, and instead are perceived solely as a means to evaluate employee performance and track errors;

Budgets require employees high performance labor; in turn, employees counteract this by trying to minimize their workload, which leads to conflicts, causes a state of depression, fear, and therefore reduces work efficiency;

The contradiction between the achievability of goals and their incentive effect: if it is too easy to achieve the set goals, then the budget has no incentive effect to increase productivity; if it is too difficult to achieve the goals, the stimulating effect disappears, because no one believes in the possibility of achieving the goals.

In addition, in the process of budgeting, an enterprise can lie in wait for “pitfalls”:

Political intrigues that may affect the allocation of resources;

Conflicts between department managers and the controlling department;

Overestimation of resource needs;

Spreading false information about budgets through informal channels.

Conclusion
Budgeting is the most transparent as a financial technique. Financial results 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 the synchronous and purposeful activity of 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, and 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 carried out to the end, and the results obtained, as a rule, only add to the “headache” financial director who initiated it!

Thus, we can conclude that the need for budget planning and cost control is necessary in the current economic conditions.

Bibliography

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10. Shim D.K., Siegel D.G. “Fundamentals of commercial budgeting. Step-by-step guide”, Azbuka - 2001, 496 pages.

Lecture plan

• 1 The concept of budgeting

• 2 Types of budgets

• 3 Organization of budgeting

• 4 Budgeting principles

Essence of budgeting

• Budgeting is a technology of financial planning, accounting and control of income and expenses received from business at all levels of management, which allows you to analyze predicted and received financial indicators

Essence of budgeting

• Budget - this is a financial plan covering all aspects of the organization's activities, allowing you to compare all the costs incurred and the results obtained for the coming period as a whole for the enterprise and separately for its divisions

• development of a coordinate system for business, transfer of the planning system from physical indicators to financial ones;

• increase in the efficiency of using the resources and assets at the disposal of the company and individual structural units;

Purpose of intracompany budgeting

• strengthening financial discipline, conducting continuous monitoring of the effectiveness of certain areas of activity;

• increasing the justification for the allocation of financial and non-financial resources in areas of activity

• control over changes in the financial situation in the company

Budget structure

Types of budgets

• 1 Core budgets

• allow managers to have all the necessary information to assess the financial condition of the company and control its change.

• For full-fledged budgeting, it is necessary to draw up all three main budgets.

Types of budgets

• 2 Operating budgets

• The main purpose of operating budgets is to prepare more carefully the inputs for core budgets.

• When developing operating budgets, the sequence of their preparation is important.

Types of budgets

• 3 Additional budgets

• designed to more accurately define financial ratios and targets:

• Profit distribution budget

• Budget of individual projects and programs

Types of budgets

• 4 Support budgets

• are designed to better take into account local features:

• Tax budgets

• Credit Plan

• Capital budget

Organization of budgeting

• "top down"

• this scheme involves the preparation of a budget by the company's management and the subsequent provision of information to lower-level managers, who plan their activities and the activities of the enterprise

Organization of budgeting

• "down up"

• with such a scheme, the opposite is done, the calculation of indicators is started by individual sales departments and then the heads of the sales department of the enterprise reduce these indicators to a single budget. Thus, the company's budget appears, which is approved by top management and accepted for execution.

Budgeting principles

• The principle of compliance with the main goals and objectives of the enterprise;

• The principle of integrity– considering the activities of the enterprise as a whole;

Budgeting principles

• The principle of consistency– consideration of financial and economic activity as a system of interrelation of internal and external factors;

• The principle of accessibility information should be available in quality. Level and volume for those users to whom it is intended;

Budgeting principles

• The principle of comparability - information should be comparable with information from previous periods;

• Correctness principle- high-quality, reliable information should be used;

Budgeting principles

• Consistency principle- budget data should be coordinated at all levels of management;

• The principle of efficiency timely receipt of analysis and correction of data used for budgeting.

Lecture 1. Subject, method and tasks of budgeting

1.1 Goals and objectives of budgeting from the position of macro-and microeconomic positions of economic science. The subject of budgeting. The content of budgeting and its relationship with financial accounting and management accounting management analysis and business economics.

1.2. The concept of the budget (estimate). Functions, principles and role of budgeting.

1.1. Goals and objectives of budgeting from the position of macro- and microeconomic position of economic science. The subject of budgeting. The content of budgeting and its relationship with financial accounting and management accounting, management analysis and enterprise economics

The current economic situation in the Republic of Kazakhstan dictates to enterprises a new approach to intra-company planning at the level of microeconomics and strategic planning at the level of macroeconomics. The competitiveness of enterprises stems from the pressing problems of market relations, for the purpose of which budgeting allows you to determine in advance the capabilities of an enterprise on its own and, with the help of attracted sources of financing, ensure the implementation of production programs, strengthen the material and production base and solve other problems. Budgeting cannot be separated from other economic disciplines, because it is used in the process of managing the activities of an enterprise through planning, monitoring and regulating management activities. Thus, budgeting is an area of ​​knowledge that is necessary for everyone involved in economic and financial activities.

Budgeting is the management of an economic entity through planning, control, regulation of management activities and the decision-making process in order to implement relevant production projects based on an enterprise development strategy. A very precise definition of the concept of budgeting is given by K.P. Yankovsky and I.F. Muhar, which reflects the following: budgeting - the development of budgets in accordance with the goals of economic activity

Budgeting is based on the system of effective management of material, labor, financial and other resources.

In a market economy, enterprises independently develop plans, production programs, projects, determine a strategy in the field of production and marketing of products, pricing, socio-economic policy. To solve these and other problems, as well as to make decisions, leaders and managers need reliable and objective information on all types of costs associated with the implementation of production programs and projects, attracting investments, and receiving appropriate financial assistance from the state for these purposes. Such information is provided by budgeting and accounting management (production) accounting.

The market economy assumes economic and financial independence.

Economic independence consists in choosing the organizational form of the enterprise, type of activity, business partners, determining sales markets, prices, and others.

The financial independence of an enterprise consists in its complete self-financing, the development of a financial strategy, and a pricing policy. In this regard, there is a need for budgeting, which provides planning, control and regulation, based on the goals and objectives for the implementation of relevant programs and projects.

Budgeting, for its part, is closely interconnected with financial and managerial accounting, because any goal facing this discipline follows from accounting.

The subject of budgeting are production activity the enterprise as a whole and its structural subdivisions.

The objects of budgeting are:

* costs in general for the enterprise and for structural divisions;

* results of economic activity of the enterprise and its structural subdivisions;

* financial resources, financial results (costs);

* sources of financing for production programs and projects;

* budgeting and internal reporting.

The budgeting process uses various methods, as working methods of accounting and planning, documentation, balance sheet generalization and reporting, index method, methods of economic analysis, mathematical methods(correlation, linear programming and others).

Budgeting is designed to plan production programs and projects, draw up budgets and estimates for their implementation, summarize costs and identify reserves for activities, works and services, cost carriers.

Budgeting plays an important role in the formation of the budget (budget). To this end, it is important to follow the technological (organizational) procedure for budgeting for the upcoming planning period, which consists of several stages:

1st stage - March-May accumulation of information;

2nd stage - June, setting a strategic task for the enterprise;

3rd stage - July-October, careful study of plans and each cost item;

4th stage - November, the merging of all stages into a single process;

Stage 5 - December, approval of the plan for the planned period.

Planning lasts from one to three years. Here, special attention is paid to:

1) investment planning;

2) introduction of innovations;

3) technical re-equipment.

Managers are responsible for these areas, and they are assisted by accountants-controllers. Here the following information requirements are imposed - the minimum time gap between the completed operation and its accounting and processing on a computer. Based on these reports, a forecast is given by the end of the year. The forecast is prepared monthly. On the basis of which annual and triennial plans are adjusted. Based on the goals for the implementation of projects or programs, there may be differences in the implementation of the technological (organizational) budgeting process. Speaking about budgeting, one cannot fail to note its connection with tax planning, because as a result of budgeting and its final results, the enterprise increases profits.

1.2. The concept of the budget (estimate). Functions, principles and role of budgeting

Enterprise planning is considered in two directions:

1) in terms of the firm and its nature;

2) from the position of financial management, i.e. the ability to foresee the future of the company and use this foresight in practice.

Planning is a special type of decision-making process that does not concern a single event, but covers the activities of the entire enterprise.

Planning e helps answer the following questions:

• at what level of development is the business and what are its final results;
• with what resources (including financial) these results can be achieved.

The planning process is inextricably linked with the control process. Planning and control are based on the analysis of past financial and production information, which is mainly accumulated in the accounting and statistical information system.

Planning and control are necessary condition enterprise management is the process of achieving the goal by the enterprise in accordance with the plans.

There are short-term (current) and long-term (long-term) planning.

Short-term planning - up to one year, broken down by quarters, months, days and shifts, hours.

Static planning - from 1 to 3 years.

Long-term (prospective) planning is developed for a period of more than 3 years (three-year, five-year and ten-year plans), in the mining and electric power industries, plans are drawn up for 20 years or more.

In turn, the development of a financial plan plays an important role in stabilizing cash flows.

The financial plan is a generalizing document that reflects the receipt and expenditure of funds of the enterprise for the short and long term.

An estimate (or budget) is a financial document created before the proposed activities are carried out. This is a forecast of future financial transactions.

Budget - an operating financial plan that reflects the costs and receipts of funds from the economic (operational), investment and financial activities of the enterprise.

The budget is a quantitative expression of plans for the activities and development of the enterprise, coordinating and concretizing in figures the projects of managers. It answers the question of how much profit the company will receive with one or another option.

The use of a budget offers a number of advantages.

1. Planning, both strategic and tactical, helps to control the production situation.

2. The budget is an integral part of management control, creates an objective basis for evaluating the performance of both the organization as a whole and its divisions.

3. The budget is a means of coordinating the activities of various departments of the enterprise.

4. Budget - the basis of evaluation for evaluating the implementation of the plan by responsibility centers: the work of managers is evaluated according to reports on budget implementation; comparing actual results with budget data indicates areas where managers should be directed.

5. With the help of the budget, an analysis of deviations is carried out.

Budgeting - development of budgets in accordance with the objectives of economic activity.

Capital budgeting - the development of budgets for managing the capital of an enterprise - determining the sources of capital formation (balance sheet liabilities) and their placement (balance sheet assets).

Budget control - current control over the performance of individual indicators of income and expenditure determined by the planned budget.

Estimate - forms of planned calculation that determine the needs of the enterprise in financial resources for the coming period and the sequence of actions for calculating indicators.

The budgeting process of an organization is called the budget cycle, which consists of:

• planning the activities of the organization, as well as its structural divisions with the participation of the heads of all responsibility centers;
• discussion of possible changes in plans related to the new situation;
• definition of indicators to be used in performance evaluation;
• adjusting plans to take into account the proposed amendments.

According to the tasks facing the enterprise, the following types of budgets are distinguished:

1. General budget and private.

2. Flexible and static.

The general budget covers all financial and economic activities of the enterprise. The main purpose of the general budget is to combine and summarize the estimates and plans of various departments of the enterprise on the basis of private budgets.

When drawing up the general budget, the following are created:

• forecast balance;
• profit and loss plan;
• cash flow plan.

The general budget consists of two parts:

1. Operational budget - part of the general budget, including a profit and loss plan, which is detailed through auxiliary (private) estimates, reflecting individual items of income and expenses of the enterprise.

2. Financial budget - part of the general budget, including capital investment budgets, cash flow and forecast balance.

Budget forms are not standardized. The structure of the general budget depends on:

• product object;
• enterprise size;
• qualifications of employees.

This document must contain data:

• about expenses;
• about income;
• about incomes that may not always be balanced;
• on the costs of material and production in kind and value terms;
• across the company as a whole and across departments.

Topic 2. Principles and methodological approaches to the formation of the state financial mechanism

2.2. Principles and methodological approaches to the formation of the state financial mechanism and the implementation of budget projects and programs

2.1. Formation of the budget system

From the standpoint of budgeting, both at the state level and at the enterprise level, the role of income and expenses is great. Incomes create conditions for ensuring the implementation of production and socio-economic programs at the enterprise, and at the state level - state budget programs and other goals, and expenses - follow from their implementation.

The state budget is divided into republican and local levels.