The head of a small business can easily manage the budget independently. CHECKED! If you manage your budget regularly, at least once or twice a week, then you begin to “feel” your enterprise and, as a result, skillfully balance between prudence and business passion.

So, budget. A budget is usually required in three cases:
1. You need a classic BDDS.
2. You take out a loan from a bank, you need a plan for income and expenses and a cash flow forecast.
3. You have a real business and you want to earn more, spend less, and always see the full financial picture.

These are different budgets. In order not to torment students and borrowers with anticipation, we provide a link to the first two budgets. Download. Let's move on ourselves. Real business is much more interesting.

Classic cash flow budget

Download the classic cash flow budget. Sample.

Cash flow forecast

Income and Expense Plan

Download the income and expense plan, cash flow forecast. Sample.

Cash flow budget for real business

Let's try to approach such an important issue as studying the budgeting process the old fashioned way. Thus, the charter of the Smolny Institute urgently demanded that “children always have a cheerful, cheerful, contented appearance and “free actions of the soul.” Therefore, it was ordered not to make science subjects of boredom, grief and disgust, but to facilitate the assimilation of knowledge by all means. To begin with, we suggest downloading sample cash flow budget for a real business (hereinafter referred to as the “Budget”) Unlike the Budget of Income and Expenses, this tool does not focus on the planned profit, but on the ability to practically control cash flow.

Download Cash Flow Budget for Real Business. Sample.

This budget is suitable for a small manufacturing enterprise, an enterprise engaged in wholesale trade or construction and installation work. This is the case when it is better to track income and costs by orders or projects.

The budget was prepared in Excel spreadsheets. It is easy to use and does not require special knowledge of information technology. All calculations are made based on the SUMIFS formula and the "Data Check" function. The file includes two main sheets: the “DS Movement Budget” Sheet and the “Payment Register” Sheet.

The sheet "Movement budget of DS" includes cells with formulas (colored) with data on actual receipts and expenses and empty cells (white) for planned data.

You should start working with the Cash Flow Budget from the “Cash Flow Budget” Sheet. In the "Project" column you must enter data about orders or projects. You can adjust expense items in the “Fixed Costs”, “Financial Activities”, “Investment Activities” sections, and add lines from the “Project” section by copying them.

Then you need to fill in the columns with the planned data, including payments for inventory items, services, etc. for projects must be marked with a minus sign.

Now in the line “Start Bank” cash gaps (negative values) are clearly visible.

Let's move on to the "Payment Register" Sheet. You can enter documents planned for payment into the payment register in two queues.

In order for the actual data on receipts to be reflected correctly on the “DS Movement Budget” Sheet, you must not only select “Project”,

but also in the “Type of expenses” column, select “Payment from the customer”. The income amount must be entered with a minus sign.

Similarly, when paying for goods, materials, services that can be directly attributed to the project, you must not only select “Project”, but also select “Payment to supplier” in the “Type of expenses” column.

The names of general business expenses items can be changed, but to do this you should go to the “DS Movement Budget” Sheet.

You can work with several current accounts, a cash register, and accountable amounts, while the names of banks can be changed in lines 5-15, and the initial incoming balances can be entered in the “Balance” column.

It is better to start working on posting actual payments by comparing the Current balance of the table with the Opening balance of the bank statement. Similarly, finish the work by comparing the Bank Statement with the Outgoing Balance. This is a good habit, it allows you to control yourself.

So, the Budget is ready. After a week of work, the process of entering actual data and adjusting planned ones will take very little time. And you will be able to fully concentrate on developing your business, attracting new clients, increasing sales and other important and useful matters.

This Budget goes well with convenient Timesheets broken down by project and employee category and it is easy to adapt for purposes Separate accounting of state defense orders.

A budget can be the first step in learning how to develop a financial strategy. Having delved into the specifics of the business and sorted out all the costs, you can easily move on to more serious analytical procedures. So, with the help of the “Finance in a Fist” service, you can describe precise actions that will help solve business problems, reduce costs, increase profits and your income.

Theory. Ready tables. Document forms. Scheme. Templates. Explanations.

Features of the formation of the budget of a unit depending on the type of this unit. How to draw up budgets for divisions of main and auxiliary activities, as well as for functional and separate divisions.

Each division plays its own role in the company's management system: some produce products, others organize their sales, and others perform supporting functions. Depending on the location of the unit and its economic role in the company, different requirements will be placed on its budget.

We will take a closer look at the budgeting process for each type of unit:

• divisions of the main activity;
• auxiliary activity;
• functional;
• a separate division responsible for financial results.

By department budget we will understand the planned income and expenses of the department for the period to complete the tasks facing the department.

Budget of the main activity unit

Departments related to the main type of activity in economic terms are the center of production costs and form the budget only in the expenditure part.

When preparing the budget, focus on the target indicators that are set by the board of directors and communicated by the financial and economic service. For structural divisions of this type, the target indicators when forming the budget, as a rule, are the amount of costs per division in producing a given volume of products.

An approximate composition of budget items is shown in Table 1. Since we are talking about approaches to preparing the budget of departments as a whole, we provide a fairly general list of budget items.

Table 1. Budget of the main activity unit

The first five groups of items are the direct costs of the department, and the head of the department is responsible for their planning (or providing information for planning), and subsequently their implementation.

Budget formation is based on data from the production program, which determines the range and volume of products produced. The production program also affects the number of employees who will be involved in the process.

The staffing schedule is agreed upon with the personnel management department - number, categories of employees, wage fund, as well as a collective agreement. The financial and economic department provides information on the amount of administrative and economic expenses that fall on this unit.

1. Labor costs include the totality of all payments to employees: wages, bonuses, social payments, etc. (see more details on how to draw up a budget for labor costs). Labor costs are planned based on the staffing table, wage fund, changes in the number of personnel, indexation of the wage fund, the terms of the collective agreement, terms of employment of personnel (permanent contracts, civil contracts), the seasonal nature of work, vacation schedules and other factors .
2. Payroll accruals. In accordance with current legislation, accruals are made to the pension fund, employment fund, medical and social insurance for the amount of wages. The planned amount of accruals for wages is calculated as the product of the “wages” indicator and the percentage of accruals on it.
3. Costs of raw materials and materials. This item plans expenses for raw materials, basic and auxiliary materials that are necessary for the production of products. The planned production volume is determined on the basis of the production program and the balance of finished products in warehouses. In order to determine the need for raw materials and materials in natural units, it is necessary to have technological maps that specify the consumption rates of raw materials and materials. If for some reason the company does not have technological maps and approved standards, then actual resource consumption rates for a number of past periods can be used. Then the resulting volume (for each type of resource) in physical terms is multiplied by the planned price of the resource. The planned price of a resource can be determined based on the price of the last purchase, an analysis of price dynamics over the last year, and a request for quotes.
4. Electricity costs are determined based on consumption standards or consumption statistics for a number of periods. The resulting volume of consumption is multiplied by the planned tariff.
5. Equipment maintenance costs. Depending on the type of activity carried out by the department, this item may include expenses for the maintenance and repair of production equipment, vehicles, etc. Maintenance expenses are planned based on the type of equipment, its technical condition, plans for current and major repairs. Depending on the approach to planning adopted by the company, this item can be planned by equipment groups and types of repairs.
6. Administrative expenses, as a rule, are planned by the financial and economic service and are correlated with the division in proportion to the distribution base. The following can be selected as the basis for the distribution of administrative and economic expenses: the total amount of expenses of the department, the wage fund of the department, the number of employees. The financial and economic department determines the percentage (or amount) of administrative and economic expenses that falls on the department and brings it to the start of the planning process.

Budget of the auxiliary activity unit

For the purposes of this article, departments of auxiliary activities include, for example, the accounting and reporting department, financial, economic planning, legal and other departments, the presence of which is mandatory to ensure the activities of the company. These divisions form a budget for their own costs. The main indicator that is used to guide the formation of the budget of a auxiliary unit is the amount of costs or the unit's gross payroll.

An example of the budget of a unit carrying out auxiliary activities is given in Table 2.

table 2. Budget of a subdivision of an auxiliary activity (budget of own costs)

The budget of departments of auxiliary activities should contain only those items that the department can influence and for the implementation of which it is responsible.

Administrative and economic expenses are not allocated to the budget of the auxiliary unit, since, in essence, that is what they are.

1. Labor costs and wage accruals are planned similarly to the budget of the main activity.
2. Travel expenses are planned in accordance with business travel plans, the cost of transport services, accommodation, daily allowance standards and other expenses. Travel expenses can be calculated as the product of the number of employees sent on business trips by the planned amount of expenses.
3. Expenses for professional development are planned in accordance with internal documents defining the process of advanced training of employees, established in the current and previous periods, the amount of expenses for professional training, and the cost of advanced training programs. Expenses for employee training are calculated as the product of the number of employees planned to undergo training and the cost of training.
4. Stationery expenses. There are several approaches to planning office expenses:

• a standard for the consumption of office supplies per 1 employee is established in physical and monetary terms, while the cost is recalculated in accordance with planned prices;
• the average cost per employee is calculated based on actual data from previous periods; in this case, it is necessary to provide for an increase in the cost of office supplies in the planned period.

Depending on the option chosen, expenses for office supplies are calculated as the product of the number of employees and the expense standard or the amount of expenses for office supplies based on actual data from previous periods. If expenses from previous periods are used, an appreciation factor must be applied to them.

Budget of functional departments

We will consider functional divisions to be those that are responsible for any functional area in the company. For example, for personnel management costs, marketing and advertising costs, IT costs, equipment maintenance and repair costs, transportation costs, etc.

Such departments, in fact, form two budgets: one budget for their own costs, the approximate composition and formation procedure of which is described in the section “Budget for a subdivision of an auxiliary activity.” The second budget is the functional expenses budget.

Budget items for functional expenses and the rules for their planning are completely determined by the features of the implementation of the function in a particular company. The functional expenses budget includes all the company's expenses in this area. The amount of expenses in a functional area is set as a target indicator.

As an example, let’s look at the composition of budget items for the marketing and advertising budget.

Budget of the department responsible for financial results

An example of such a unit could be a company department (or business unit) that implements the full cycle from the production of a product or service to the moment of sale. This could be a division in an insurance, auditing, medical, transport, manufacturing company, etc.

The budget of the department responsible for the financial result consists of revenue and expenditure parts, and the financial result is also calculated.

The key indicators when forming a budget are the amount of balance sheet profit, income and costs.

Revenue part

In the revenue part, income from those types of activities, products, and services for which this division is responsible is planned. Income can be planned in detail: by type of product/service, sales markets, counterparties, product groups, etc. When planning the revenue part, information about concluded contracts, market research, sales statistics and other factors is used.

Expenditure part

The approaches to the formation of the expenditure side of the budget described above can also be used to form the budget of departments responsible for the financial result. The expenditure part of units of this type usually contains direct costs associated with the creation of a product or service and administrative costs for the maintenance of this unit. If the division is part of a company, then general corporate expenses may be allocated to it. They can be distributed in proportion to direct or general expenses of the department, payroll, or in accordance with the rules adopted by the company.

The following indicators can be calculated as a financial result:

1. Marginal income of a division - shows the difference between the income and direct costs of the division.
2. Operating profit of a division - shows the result after deducting the entire amount of expenses of the division from income.
3. In some cases, it is advisable to calculate the net profit indicator, if, for example, the division is separate.

Table 4. Budget of the department responsible for financial results

Example of a department budget

Using the example of the trading and production company “SuperShkaf”, which is engaged in the production and sale of furniture, let us consider what types of budgets each structural unit will form depending on its functional and economic role.

TPK "SuperShkaf" consists of a trading house, which is a separate business unit, which includes a retail network and a wholesale sales channel (the structure is shown in Figure 1). The trading house sells both its own products and purchased ones. The target indicators of this business unit are the indicators “income” and “marginal income”.

The production complex includes production workshops and services that support production. Target budget indicators are: production volume in physical terms, costs. The management company provides auxiliary functions - organization and maintenance of accounting, economic planning, and legal activities.

The management company also provides functional management of personnel and logistics of the trading house and manufacturing company. The company's target indicators are the amount of costs for providing support functions.

Picture 1. The structure of the company

The trading house, as a structural unit, based on the tasks facing it, will form the budget of the unit responsible for the financial result, which will include revenue and expenditure parts. The divisions that are part of the trading house will form the budget of the division of auxiliary activities - the budget of its own costs. Also, these same divisions will form functional budgets: retail and wholesale sales departments - sales budget; marketing department - marketing and advertising budget, service department - budget for customer service costs (see Figure 2).

Figure 2. Budgets of departments of a trading house

The divisions that are part of the management company and related to auxiliary activities - the financial department, the planning and budget department, the legal department, the internal control and audit department - form a budget for their own costs. The departments - supply chain management department, personnel development department - form the corresponding functional budgets, as well as budgets for their own costs.

The production complex includes two types of divisions: divisions of the main type of activity and auxiliary type of activity. The division of the main activity includes production. The auxiliaries include everyone else. They form budgets appropriate to their type of department.

The process of implementing budgeting allows you to create a unified and effective management system. Organized properly, it not only helps to implement the functions of operational management, but also contributes to the achievement of the company’s strategic goals outlined by the administration.

You will learn:

• What is the budgeting process?
• What functions does the budgeting process perform in an enterprise?
• How to organize the budgeting process in an enterprise.
• What are the main approaches to the budgeting process.
• What difficulties arise in the budgeting process.
• How the budgeting process is analyzed.
• What are the benefits of automating the budgeting process in an enterprise?

What is the budgeting process?

Planning– the main tool in solving various problems. In the modern economy, it is he who plays a central role in management. The international market welcomes planning because in a highly competitive environment, it is impossible to bring your products to market without a pre-thought-out plan.

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In the article you will find a formula that will help you not make mistakes when calculating sales volume for a future period, and you will be able to download a sales plan template.

Planning as the process of prescribing mandatory further actions, together with control, is considered one of the main functions of management.

Budgeting itself is a system of operational planning of the overall work of an enterprise (including all its divisions) for the coming financial year in the context of quarters (months, decades, weeks) with the designation of long-term tasks in all areas of the financial and economic activities of the entity.

Budgeting is a method of short-term planning, checking and accounting for the funds and results of a commercial structure, taking into account areas of business and centers of responsibility. With its help, an analysis of planned and achieved economic indicators is carried out for productive business regulation. As a collective process, budgeting ensures consistency in the actions of the company's internal divisions, subordinating their work to a single strategy. Budgets cover all aspects of economic activity and also contain planned and actual (reporting) indicators. In essence, they reflect the goals and objectives of the enterprise.

Planning within a company can be shaped in different ways. Typically, two are used scheme preparing budgets:

• the “top-down” budgeting process, when the administration outlines goals and objectives, more precisely planned profit data, which are then specified and added to the tasks of the departments;
• The “bottom-up” method involves preparing financial plans in departments and submitting them for consideration to the manager for the purpose of further adoption of the budget.

For the budget to really help the company, it is necessary to compare forecasts with the results of the implementation of past plans, look for sources of inconsistency and make the right decisions.

The plan should be based on the tasks scheduled for execution in the expected period. In other words, a tactical plan is a detailed scheme for achieving the global goals of an enterprise.

The point of budget planning is to assign responsibility for each individual item of income and expense. Budgeting takes on maximum importance when the company's financial activity is stable. If, on the contrary, the conditions of its work often change, they usually use the method of rolling budgeting in the form of constant drawing up of budgets, which are necessary to clarify planning tasks.

The main goals of the budgeting process are:

• analysis of future expenses by period;
• timely implementation of the enterprise’s work plans;
• creation of a calculation base for the company’s efficiency for various types of activities.

When preparing and executing budgets, a number of constraints are taken into account. As an important component of short-term (operational) planning, budgeting must be consistent with the strategy, marketing and other plans of the organization. A mandatory criterion for its introduction is the use of information technology. In addition, this system must correspond to the specifics of the company and its field of activity.

Fundamental principles Budget planning are: unity, consistency, adaptability and accuracy.

Unity implies systematic budgeting of the company, and all its divisions, as centers of responsibility involved in the formation of budgets, must strive for a common and global goal in the form of drawing up a master plan, checking its implementation and making adjustments to subsequent projects based on the results of control and monitoring the implementation of the plan.

The principle of accuracy requires that the budgets being formed be as specific as possible to the operational plans of the enterprise.

In addition, other principles of budget planning are considered, such as:

• compatibility of budget parameters with official reporting forms;
• standardization of budget cycles, forms and procedures for preparing plans for enterprises and organizational units without taking into account the specifics of their economic activity;
• distribution of overhead costs to the total costs of the enterprise and its divisions according to a single formula for all;
• preliminary determination of the financial goals of each division by adopting specific profitability standards;
• constancy of budgeting and the budget process, which determines the systematic revision and clarification of previous forecasts for the upcoming period, without waiting for the end of the current one;
• accounting for income (expenses), credits and debits of money in accounting units commensurate with time;
• detailed accounting of the most significant expense items, the share of which in net sales is quite high.

In terms of its content, the budget is a financial document of the sample accepted by the company, which contains established items and planned indicators for a specific time interval.

Organization of the budgeting process in an enterprise: advantages and disadvantages

Benefits of budget planning:

• has a positive effect on the motivation and disposition of the team;
• allows you to coordinate the work of the entire enterprise;
• budget monitoring makes it possible to make timely adjustments;
• helps to take into account the experience of forming past budgets;
• promotes rational allocation of resources;
• establishes communication processes;
• allows entry-level managers to understand their role in the company;
• demonstrates the difference in expected and achieved results.

Disadvantages of the budgeting process:

• unequal perception of budgets by different employees (for example, budgets do not always help solve current problems, do not always indicate the reasons for deviations, rarely reflect changing circumstances; besides, few managers are sufficiently prepared to process financial data);
• complexity and cost;
• budgets, which are not familiar to all employees, have almost no effect on their motivation and work results; they are perceived as a tool for assessing staff performance and identifying errors;
• budgeting requires employees to be highly productive; and they, in turn, interfere with planning, trying to reduce their workload, which causes anxiety, depression and conflict among staff, reducing their productivity;
• discrepancy between the achievability of goals and the effect of motivation: if the intended goals are easily achievable, the budget does not encourage employees to work more productively; if the results are too difficult, there is also a lack of interest due to the inaccessibility of what was planned.

Expert opinion

Reasons for the ineffectiveness of the budgeting process

Mikhail Tsvetkov,

Director of the business direction of management consulting at Microtest, Moscow

Unfortunately, the experience of my work with Russian enterprises (including local representative offices of foreign companies) shows that in general (more than 80% of cases) the introduction of the budgeting method does not have the desired effect that is possible as a result of its application. The reasons for this are as follows:

• budget planning is used only as a financial tool; in other words, with the help of budgets, enterprises control real turnover, but do not make administrative decisions;
• plans and reports are filled with unnecessary information;
• the budgeting process is organized irrationally;
• budgets only superficially represent the work of the company;
• management does not express a desire to get involved with budgeting.

The majority of enterprises can easily resolve these problems. The last of the listed options is the most problematic, but rarely encountered. However, everything is in your power. If you are a general or commercial director, you are able to use a strong-willed decision to introduce a full-fledged budgeting process, and then provide incentives for your subordinates to introduce and skillfully use budgeting at an accessible level.

As a reward for all your efforts, you will acquire a working tool for high-quality business planning, financial management and control over the company's work, in addition to creating a solid basis for approving administrative decisions.

What functions does the budgeting process perform in an enterprise?

1. Budget for economic forecasting.

The management of an enterprise of any size and focus should know what economic tasks can be planned for the future period. Since a certain circle of people justifiably shows interest in the functioning of the company, they also have elementary requirements for the results of its work. In addition, when planning a series of activities, you need to imagine the amount of economic resources to complete the intended tasks. For example, this concerns planning in the field of raising capital (obtaining loans, increasing share capital, etc.) and assessing the scale of investments.

2. Budget as a basis for control.

In the course of implementing the plans provided for in the budgeting process, recording the real achievements of the enterprise is required. By comparing planned indicators with the received ones, budgetary control can be carried out. The main emphasis is on data other than planned, and the reasons for the identified deviations are studied. In this way, information about all areas of the enterprise's activities is collected. For example, budget control will help you find out in which areas of work the plans are not being implemented. However, there are situations when the budget itself is based on unrealistic data. In such cases, the administration is interested in reliable information in order to take the necessary measures in the form of adjusting the methods of implementation or checking the provisions underlying the budget.

3. Budget is a coordination tool.

The budget determines the action plan in the field of production, purchases of products (raw materials), sales of manufactured goods, etc., expressed in price indicators. This program should ensure the functional and time distribution (coordination) of specific activities. For example, the profitability of sales is influenced by the size of the supplier's expected price and release conditions; for the quantity of products produced - the planned scale of implementation; for the selling price - the volumes of purchased raw materials (materials), which are provided for by the production and sales plan.

4. Budget is the foundation for defining objectives.

When preparing a budget for a future period, decisions should be made in advance, even before this stage occurs. In this case, there is a high probability that the plan developers will have enough time to put forward and analyze alternative proposals.

5. Budget for devolution.

The approval by the head of the company of the budgets of organizational units is an indicator that subsequently all operational decisions will be made by these units independently (decentralized) subject to compliance with the budgetary framework. If budgets are not formed for departments, the administration is unlikely to be interested in decentralizing operational management.

Where does the organization of the budgeting process in an enterprise begin?

To begin organizing the budgeting process, you need to understand the differences in order to create each financial plan. Violating the rules for selecting items for a certain type of budget is a standard mistake when creating such systems.

Cash flow budget(hereinafter BDDS) is more obvious, since it specifically outlines and records actual cash flows and is quite simply formed. It shows the solvency of the company in the form of the difference between receipts and deductions of money for the period of interest.

The two key, ideologically different types of budgets include the process of budgeting “top-down” and vice versa – “bottom-up”.

The first of them requires the administration to have a clear understanding of the main specifics of the organization and the ability to form a realistic forecast, at least for the period under discussion. The budget issued from above guarantees the coherence of the economic plans of structural divisions and sets benchmarks for sales, expenses, and others to determine the effectiveness of the responsibility centers.

The second approach involves the collection and sifting of budget data from performers to lower-level management, then to the top officials of the company. Most often, with this approach, a lot of effort and time is spent on linking the budgets of all organizational units. In addition, the figures submitted “from below” are often significantly changed by the administration during the budget approval process, which, in the case of baseless decisions or unconvincing arguments, leads to a negative reaction from subordinates. This situation is fraught with a further decrease in trust and, consequently, attention to the budgeting process of entry-level managers. This manifests itself in inaccurately collected data or deliberately exaggerated figures in budget sources.

This type of budget planning is very common in our country due to the vague prospects for market prosperity and the reluctance of top officials to draw up plans. Alas, for the overwhelming majority of domestic top managers, strategic design still exists as a pleasant foreign term.

Basic approaches to the budgeting process

There are different approaches to the budgeting process. Let’s say “output/input”, which is based on activity, process and strategic budgeting, incremental aspect, etc.

1. "Exit/Entrance".

This method involves the distribution of material costs taking into account planned actions at the product unit level. It is very popular in the provision of services, for production, merchandising and distribution, where the decisive factor is the correspondence of the efforts made to the achievements.

Let's say that each manufactured unit requires 2 packages of basic materials, the price of which is 5,000 rubles, and the expected output volume is 25 units. At the same time, the budgeted costs for the purchase of basic materials are 50 packages (25 units × 2 packs/unit) and 250,000 rubles. (50 packs × 5,000 rubles).

Budget revenues (“inputs”) are closely related to planned results (“outputs”). The beginning of the “output/input” method is the calculated “outputs”, after which the budget of “inputs” is calculated in reverse order. The drawback of this aspect is the difficulty of using it for indirect costs that are not associated with expense coefficients for a unit of goods.

2. Action-oriented approach.

This path is similar to the previous type of input/output budgeting process. However, it neutralizes distortions in transformation by emphasizing the “expected cost” of expected actions carried out for department, product and other budgetary purposes. Here overhead costs are budgeted taking into account the expected costs of various activities.

The value of each cost coefficient used for specific budgetary tasks (for example, the budget for goods, services) is calculated and multiplied by the price per unit of cost. The result is an estimate of costs for each product (service), based on a cost index, plus classic coefficients based on volume, for example, units of explicitly consumed materials or direct labor costs.

The budgeting process, composed of clear activities, generates cost forecasts for budget objectives using an index of costs for activities that affect the estimates of each product (service). When considering the generated budget, management should pay attention to the choice of the optimal combination of foreign economic activities, and not just to the “output/input” type relationships.

3. "Minimum level".

As fixed costs have risen for many businesses over the past century, a growing portion of costs have been budgeted through an incremental, less-than-precise approach. This indicates the absence of total budgetary control over further increases in costs. Management attempted to improve cost tracking through a multivariate and incremental approach. The minimum level method demonstrates one of the desires to control cost growth at the level of a structural unit.

Using this approach, the company selects a base amount for budget items, then requiring reasoning and explanation for each budget item that exceeds the established limit. Most likely, it will be the minimum amount sufficient to maintain the viability of the program or the further activities of the structural unit.

Let's say a corporate director of product creation requires a certain base amount to avoid the closure of existing projects. In addition, the enterprise budget may contain additional funds: first to maintain the proper level of output of goods, then to implement new projects.

Expert opinion

Approaches to Budgeting During an Economic Recession

Vadim Shtrakin,

independent expert, Moscow

In response to the situation in the external economy, companies have identified different approaches to the business budgeting process during the recession. Let's look at the main ones.

1. Based on cost of living.

The company starts from the minimum verified demand and forms a production and commercial budget based on it. Taking these documents into account, she builds a credit policy and plans borrowings. The maximum reduction in any costs and use of investments is guaranteed. But this method also has obvious disadvantages - the planning horizon is limited to a month; enterprises are deprived of the ability to forecast for at least 3-6 months. This technique allows for difficulties in calculating some kind of rational development.

2. Based on the approved targets at the beginning of the year (6 months).

During an economic crisis, some businesses do not want to give up annual planning. However, the past year has shown the unproductiveness of this approach for the vast majority of companies, taking into account the very large deviations of real indicators relative to planned ones. In essence, this method is suitable only for monopolists who set their prices for products (services) through extensive contracts. This means there is no need to delve into its features.

3. Scenario planning.

As a rule, each company prepares two or three scenarios for the development of events, including optimistic, pessimistic or drastic. At the same time, the information base contains:

• analytics prepared by well-known banks, including foreign ones;
• forecasts of various investors (companies, funds) and international regulators (IMF, World Bank, WTO, etc.);
• forecasts of state executive bodies.

However, this approach also has disadvantages, since the initial data coming from outside is most often fragmentary and varied in format, and the forecasts issued are erroneous and, as a rule, biased. As for banks and investment companies, they prepare data based on their own goals. So it is better for enterprises to independently collect macroeconomic and other indicators for further planning, instead of relying on the opinions of consultants and third-party firms. This will require a professional understanding of the current internal and external economic conditions, their dynamics and the role of regulators, as well as the ability to “read” the international market in terms of goods, funds and currencies.

Stages of the budgeting process in an enterprise

Stage 1. Creation and regulation of a business model.

An important place in the budgeting process is occupied by the preparation of a formalized scheme for the formation of a business, forecast models and various schemes for the accumulation and consumption of resources with a mathematical interpretation of the method of drawing up a budget and the relationship of its elements (for example, assets and liabilities must always be equal).

The effectiveness of applying a business model increases significantly in the process of combining the budget system with other analytical tools. For example, to study liquidity gaps and forecast financial flows in banking institutions, it is rational to use the MBM (“Bank Management Model”) or similar standardized mechanisms for regulating assets and liabilities.

Stage 2.Budgeting.

As a rule, when preparing a budget, organizational units of an enterprise receive control figures for the planned allocation of resources for a specific period. These structures draw up their micro-budgets (primary) taking into account their goals (for example, a 20% expansion of the loan portfolio) and actually existing resources, transferring them to management for approval and approval. The adopted primary budgets represent a kind of blocks for building a unified budgeting process for the organization. For the purpose of further control, the plans and forecasts underlying the formation of budgets and their future adjustments must be kept in the system with the obligatory appointment of a responsible person.

The following features are characteristic of the draft budget preparation stage:

• a large amount of new information;
• its sources are possibly independent and geographically distant;
• the main flow of information is directed in one direction - from organizational structures to management;
• the process is collective and unifying.

Stage 3.Adoption of the budget.

During the approval of the project, individual articles are regulated and emphasis is reassigned. The formal appearance of the budget may change significantly from the original source. Its final version is influenced by a variety of factors, including market conditions, the stability of socio-economic conditions, and even the staff vacation schedule. The result of this stage is the company’s budget adopted for the corresponding period.

Since most factors (especially the state of the market and its elements) usually cannot be accurately predicted for a long time, in some cases the flexible budget technique is used, which is initially aimed at the prospect of change, taking into account the dynamics of its various indicators.

At this stage, the budget project, concentrated in one place, undergoes quantitative and structural edits to transform its data into the most suitable for the rational distribution of existing resources.

Stage 4.Communicating benchmarks.

After the adoption of the budget project, all its changes should be communicated to the developers of the initial options, that is, they should be informed of the final control figures and, if necessary, allowed to adjust the initial budgets. The point of this process is to isolate sections from the budget (in essence and structure they are considered primary) and bring them to the organizational units involved in the preparation. The creators of the original budgets adjust them taking into account the target figures, correcting the indicators for 100% resource allocation. The purpose of finalizing the values ​​lowered from above is to change the volume of resources located in the key segments of the budget and the lower hierarchy. The corrected budgets of the organizational structures are again combined to update the company's financial planning.

In this phase, the budgeting process is associated with many operations to isolate subcircuits for their independent operation with further consolidation in order to determine the reliability and completeness of the data. In its function it is a distribution procedure.

Stage 5.Budget implementation.

The longest and most important stage of the budgeting process is its implementation. Here the budget is subject to adjustment taking into account changes in external conditions or internal needs: funds are reduced and redistributed, budget items are proportionately optimized, it changes according to special algorithms, etc.

In practice, this is editing generalized information and then delivering the finished document to the responsible parties.

Stage 6.Control over execution.

In fact, this stage starts immediately after the budget is signed. Since its duration is not limited to the budget calendar period, it lasts quite a long time. At this time, the results of the enterprise’s work and the reasons for the deviation of the achieved indicators from the planned ones are analyzed. As a result of this stage, the progress of budget implementation, the business model, and even the vector of development of the entire business may change.

Difficulties associated with the company's budgeting process

The company's budgeting process, based on FRCs (financial responsibility centers), is quite complex and troublesome. It is impossible to prepare a high-quality budget in one day, because this is a long process that requires constant attention and assistance from knowledgeable specialists.

To avoid difficulties, it is better to involve third-party experts for constant assistance, who will monitor the budget system at a given frequency. As an option, you can professionally train your own employees.

What are the main challenges in preparing a budget? There are several of them.

1. Downplaying income.

The company's financial reserves are limited, but persistent underreporting of revenues leads to accounting discrepancies.

2. Exaggeration of profitability.

A more delicate situation arises when income is overstated. The management of the Central Federal District should be aware that under such circumstances, it is necessary to look for additional ways of financing for the expenditure side or reduce it in parallel.

3. Failure to include forgotten items of income (expenses) in the budget.

It happens that some income and expense items, usually located at the junction of different departments, fall out of accounting. To eliminate this error, they are introducing the latest automated budgeting system, which reduces the likelihood of unaccounted expenses to almost zero.

Analysis of the budgeting process

Now effective management is created on the basis of planning the work of the enterprise and checking the implementation of adopted budgets. The most important control tool is to detect deviations of the obtained indicators from the figures approved by the plan. Management should make effective decisions and influence the company's activities only if the deviations found are important. In order to focus the administration's attention on significant discrepancies, it is necessary to analyze the organization's performance in previous years, calculate the range of permissible fluctuations in indicators, and introduce a notification system.

In world practice, a management system where the attention of the administration (including the financial director) is paid only to important discrepancies between actually achieved indicators and planned (standard) figures is called “management by exception”. In general, to manage inconsistencies, reporting is developed, where the characteristics of the company’s work with large deviations from the plan are highlighted in a certain way (color, font, etc.). This approach will allow the financial manager to quickly assess the current situation. But for the practical implementation of this method, it is necessary to determine what differences between fact and plan can be tolerated.

At the same time, it is necessary to take into account that the scope of possible deviations adopted by the company must, firstly, be as narrow as possible to achieve the intended tasks, and secondly, it should not cause unnecessary anxiety if the discrepancies are related to the real specifics of the managed activity.

It should be noted that in the process of enterprise budgeting, planning is mainly carried out for different periods (quarter, year, month). Their implementation must be monitored at the same intervals. Therefore, for each budget period there must be a range of acceptable variances that require consistency. In other words, when monthly economic indicators fall within acceptable limits, the discrepancy between actual annual results and planned ones should also coincide with accepted standards.

When considering the significance of deviations, several important factors should be taken into account, and first of all, the specifics of the enterprise. Secondly, the planning period plays an important role. For a longer budget period, the scope of possible deviations should be expressed as a percentage rather than in regular numbers. Management’s insistence on the stable operation of the organization should also be taken into account.

Next year, more stringent requirements for the accuracy of budget execution may be set than in the past year. As practice shows, when determining acceptable differences, as a rule, two methods are used.

1) Expert assessments.

This method of identifying possible deviations is the most popular in practice, since it does not require difficult calculations, and the boundaries of discrepancies are formed according to expert opinion. The functions of experts are usually performed by the heads of organizational units who are entrusted with one of the operating budgets. Unfortunately, the deviation limits calculated in this way are characterized by rather low accuracy.

The use of expert assessments is effective for enterprises with retail or small-scale production, for organizations implementing new projects, for construction companies and leading research institutes.

2) Statistical analysis in the budgeting process.

Analysis of the statistics of deviations observed in past budget periods allows us to reasonably assess the boundaries of acceptable deviations. But it should be noted that this method is only suitable for structures with continuous and serial production, for transport companies, mining enterprises, etc. In other words, where the specifics of the organization’s work require the cyclical nature of economic operations. This provides the accumulation of information about budgetary activities over several years, which helps to detect deviations that have attracted the financial manager's keen interest.

Most often, the results of a company’s work cannot be outlined with absolute accuracy, since they are influenced by many random factors that cannot be taken into account. Therefore, when determining the scope of future deviations, it is possible to apply probability theory and statistical analysis, considering indicators for budget items as random variables.

When studying the significance of deviations of actually achieved results relative to planned ones, one should take into account that the discrepancies:

• normal if the difference between the actual and expected values ​​for any of the budget items is not higher than the standard deviation;
• insignificant if the difference between plan and fact falls within the range of 1-2 standard deviations;
• are significant and require urgent management if the difference between actual and expected values ​​is twice the standard spread.

The deviation intervals found in this way will help to generate reporting for management on the implementation of budgets, where all minor discrepancies between planned and actual values ​​will be missed, and the most important facts of shortcomings or exceeding the plan, on the contrary, will be emphasized. In fact, with this approach, at least 70% of deviations will be filtered out, allowing the financial director to analyze in detail the reasons for the occurrence of large discrepancies between planned parameters and actual ones.

The main component of the control system is deviation reports. They can be compiled every day, week or month, taking into account the nature of the indicators being studied, and submitted to the manager in the format of certificates of discrepancies or reports, where indicators of significant differences between actual and planned are specifically highlighted from the total mass.

The most basic way to mark reporting indicators that deviate significantly from the plan is color. But you can use other ways to visualize the necessary numbers to attract the attention of management. For example, comments in the report and different fonts that will make the boss take a closer look at the desired object.

Before introducing a methodology for controlling deviations in the budgeting process, it is appropriate to develop a procedure for this work, which should consist of a number of key positions:

• guidelines on the methodology for controlling discrepancies, understandable not only to financiers, but also to employees of other departments (for example, the sales director, marketing specialists, etc.);
• forms of transmitting information about deviations that are more demonstrative and effective than ordinary marks in standard reports;
• terms and rules for providing data;
• feedback procedure (if necessary, obtaining auxiliary analytical information);
• Full name of those responsible for important decisions (separation of powers for making these decisions is acceptable, taking into account the degree of deviation);
• the period for making decisions regarding the found inconsistencies.

The method of regulating deviations can be automated using any available program that will allow you to create budgets and obtain information about implementation. But information and analytical systems will be the most productive for a financial manager, since they have special capabilities for drawing up and reviewing reports, and have the functions of modeling and preparing forecasts. In other words, during the budgeting process, the financial director will not only be aware of the most significant discrepancies that occurred during the implementation of budgets, he will have the opportunity to foresee the results of decisions made to eliminate the identified deviations.

The resulting discrepancies between planned figures and actual results are brought to operational meetings of middle-level managers or considered at strategic sessions of senior management. At these meetings, the actual operation of the enterprise, the reasons for maximum deviations are examined in detail, and important administrative decisions are made.

Systematic regulation of deviations can significantly reduce the flow of information directed to the financial manager, reduce the number and improve the quality of his current decisions, and promptly identify the most problematic aspects of the enterprise’s activities.

Automation of the budgeting process in an enterprise

The process of implementing budgeting is relevant in those companies where timely information about their financial situation can (should) become the basis for management to formulate methods for implementing assigned tasks and making necessary changes.

Therefore, automation of the budgeting process is rational for enterprises where:

• there are at least three departments;
• there is an economic or planning department;
• The staffing table contains at least five management positions (general director, financial manager, heads of departments, etc.).

It happens that during the development of a company, it is difficult to timely collect genuine reports on budget execution. In these situations, budgeting becomes not a management tool, but an established but useless business process. Organizations that are unable to timely analyze planned indicators and actual data must take measures to computerize these actions.

Automation of the budgeting process has a number of obvious advantages and allows you to:

• engage in planning at any level - from business plans of divisions to general budgets of the holding,
• facilitate the collection of factual reporting data,
• consider budgets and the degree of their implementation in the analytical context of production and financial planning;
• Conveniently configure the broadcast order.

Automation is carried out through the introduction of special information systems that provide the enterprise with serious benefits:

• reasonable ways to resolve management problems through the use of mathematical calculations and intelligent systems;
• 100% accuracy of information;
• relieving staff of routine operations thanks to their computerization;
• introduction of electronic data carriers instead of paper ones for more convenient and high-quality information processing, as well as reducing the volume of usual document flow;
• modernization of the structure of information flows and the company’s documentation processing system.

Automation of production and financial planning of an enterprise will allow you, without resorting to the services of developers and programmers, to carry out the budgeting process with the active participation of responsibility centers, facilitate it “from above”, “from below” and in a mixed manner, make forecasts, automate the interaction and approval of budgets, and conduct analysis.” what if”, extract data from accounting systems and the like, evaluate the plan – fact.

First of all, the choice of an information system depends on its features:

• functionality and cost;
• speed of implementation;
• labor costs for adaptation.

A modern computerized system must not only provide flexible configuration and import of current data from accounting programs, but also monitor restrictions on items, important indicators and standards, and issue notifications. The cost and timing of implementation must correspond to the productivity of using the system.

Automation of the process can be done in two ways:

1. Based on the existing or selected budgeting method, the most suitable information system is sought.
2. Having decided on the information system, you can apply the budgeting methodology attached to it.

Working using a method that is not characteristic of the chosen program most often brings a multiple increase in cost and an extension of implementation time.

Information about experts

Mikhail Tsvetkov, director of the business direction of management consulting at Microtest, Moscow. Mikhail Tsvetkov has been working at Microtest since November 2006. During his career, he worked his way up in the largest Russian consulting companies from consultant to department director. Experience in financial consulting – 10 years. "Microtest". Field of activity: management consulting, implementation of business applications, construction of IT infrastructure, professional IT services. Form of organization: LLC. Territory: central office - in Moscow; fully functional regional offices - in St. Petersburg, Yekaterinburg, Krasnodar, Nizhny Novgorod, Novosibirsk. Number of personnel: 800. Main clients: Bank of Russia, OJSC Lebedyansky, OJSC Lukoil, Pension Fund of the Russian Federation, Raiffeisenbank, OJSC Russian Railways, Toyota Motor LLC.

Vadim Shtrakin, independent expert, Moscow. Vadim Shtrakin graduated from the Moscow Aviation Institute and the State University - Higher School of Economics. More than 15 years of management experience. Until September 2007, he served as executive director of the Estar metallurgical holding, and previously worked in senior positions in the Evraz Group holding.

The article describes the main stages of organizing budgeting at an enterprise, an example of the structure of budget management, types of budgets, as well as the rules of budget control and adjustment of values.

Budgeting is the basis of the activities of any organization; in this regard, it is important what it is based on, by whom and how this process is organized. Plans can be detailed or not very detailed, long-term and short-term, ambitious or modest, but the main thing is that they must be feasible, balanced and subordinate to one ideology. Read more about organizing budgeting in an enterprise in this article.

Regardless of the type of activity, size and positioning of the company in the market, it can be noted that the right plan contributes to unification and team unity; the effectiveness of plans for the enterprise as a whole always depends on the balance of the plans of individual divisions. Moreover, the more demanding, professional and authoritative the leader, the more likely it is to achieve the goal.

And, conversely, incorrect plans are always bad: indicators that are underestimated and extended over time are relaxing, while overestimated ones cause apathy, irritation, and lack of faith in one’s own team and strength.

The plan must ensure the precise implementation of the company's goals within the given time frame, and the manager must ensure the coordination of the actions of the participants using a systematic approach to the implementation of the plan, his own knowledge and wisdom, decomposing them into motivated understanding and actions of the participants through planning.

In the process of preparing for planning and during the planning itself, you should always focus on the main functions of management: goal setting, process organization, building a primary accounting system, monitoring processes and indicators, regulating and coordinating work, stimulation and motivation.

Main types of preparatory work for the effective organization of budgeting in an enterprise

When starting planning, it is necessary to highlight the main patterns of the organization’s work, understand to what extent information and financial flows are configured and what their detail is, as well as what the owners and managers of the company want, how united they are in understanding the goals. The more attention is paid to organizational issues, coordination of concepts, actions and ideology, the more effective the planning process will be.

This process is implemented through the budget system, and budgeting is closely related to the management process. Therefore, the quality and timeliness of management decisions depends on how the budget management system works and how much it is supported by management and employees.

Let's consider the basic concepts of budget management.

Budget management is a system for managing a company by responsibility centers through budgets, which allows you to achieve your goals through the implementation of budgetary powers and the most efficient use of resources.

Budgetary powers are the rights and responsibilities of subjects of budgetary management and other participants in the budgetary process to regulate budgetary relations, organize and implement the planning and control process.

The budget management system at any enterprise must be built, including the following processes:

• formation of a financial structure and determination of budgetary powers of process participants;
• development and approval of company budgets (including the distribution of budget limits by income and expense items);
• formation of contractual obligations within the framework of approved budgets, taking into account minimizing risks and ensuring the safety of the company’s activities;
• execution of settlements within the framework of formed contractual obligations and control over the execution of income and expense budgets and cash flow budgets;
• formation of a complete package of primary accounting documents (for income and expenditure parts);
• generation and provision of management reporting;
• analysis and decision making.

The basic principles of budget management should be reflected in a separate document - the budgeting regulations, and then kept up to date. At the same time, it is very important to create an atmosphere of interaction in the team so that each employee can make informed proposals for changing or supplementing sections of the regulations. The provision must be revised if the enterprise strategy, structure and principles of interaction between divisions change.

When creating any plan (or budget), you have to ask yourself where to start. And if we are already talking about budget management, then it is necessary to understand that it is impossible without streamlining management processes, without creating a system of planning and control, management accounting and budgeting. The basis of all this is the financial structure of the enterprise.

Before building a financial structure, it is necessary to define the concepts and its elements (subjects). Let us propose the following formulations.

Subjects of budget management– these are structural divisions, collegial bodies and employees of the company participating in the budget management process in accordance with their competence and area of ​​responsibility.

Financial structure– a set of financial responsibility centers broken down by financial accounting centers.

Budget structure– hierarchy of operational, functional and final budgets of the enterprise.

Financial Accounting Center (FAC)– an accounting unit (object, project) for which consolidated information on income and expenses is accumulated in the accounting system.

Center for Financial Responsibility (FRC)– a structural unit that, in the course of its functional activities, forms, executes and controls budgets or their individual items. Each Central Federal District is headed by a manager who is responsible for the activities of the unit within the framework of budget management.

Then, guided by the definitions, you should figure out whether the financial structure can be implemented on the basis of the organizational one. Let us immediately note that at the first stage, when the budget management system is not fully implemented at the enterprise, it is possible to use the “as is” mechanism and combine organizational and financial structures - this is convenient from an organizational point of view, since the head of the department will also be the head of the financial center responsibility, that is, it will be endowed with the rights and responsibilities of financial management, which will avoid some conflicts and contradictions between the heads of the Central Federal District and the functional unit.

If the budget management process has already been launched at the enterprise and the company is immersed in this process, then it is possible, and in some cases necessary, to separate these concepts, since after all, the financial structure differs from the organizational structure (see what is the organizational structure of enterprise management).

The financial structure reflects responsibility for achieving the target indicators of the Central Federal District, that is, it reflects the goals and objectives of the business, including taking into account its diversification. The organizational structure is built on hierarchical subordination and, sadly, can be formed under the influence of intra-company “political” trends and personal influences of individual employees. The organizational structure is always based on functional specialization (development department, supply department, IT, technology department, etc.), and the financial structure is based on economic relations between the Central Federal District.

Budget management, built on the principles of management by responsibility centers, allows the financial structure to be the main mechanism for achieving the financial goals of the enterprise. An example of the structure of the budget management of a trading and manufacturing enterprise is presented in Diagram 1. The organizational hierarchy is obvious, but the nature of the subordination is completely different: the subject of zero-level budgeting in the Central Federal District is the company as a whole, it is responsible to the owners for the consolidation of all financial performance indicators, work results and budget execution companies. The subjects of budgeting for the Central Federal District of the first level are enlarged entities - directorates, departments, services, shopping centers, the current management of which is under the responsibility of the relevant divisions. The following can act as digital financial institutions of a trading and manufacturing enterprise:

• shopping centers, workshops, divisions (with consolidation by format, region, product);
• investment projects (each project separately);
• management company (all central financial districts of the administrative center are consolidated).

Scheme 1. An example of the structure of the budget management of a trading and manufacturing enterprise

After the formation of the financial structure, it is necessary to determine the powers and responsibilities of the participants in the process at all stages of budget management, delimiting areas of responsibility. As an example, we provide a matrix of powers and responsibilities of budget management subjects at the budget preparation stage (see Table 1).

Table 1. Matrix of powers and responsibilities of budget management subjects

Similar matrices can (and should) be compiled for the remaining stages of budget management, and it is important to involve all key participants (managers of the Central Federal District) in the process, bring the idea to the level of conscious understanding and acceptance of the process, discuss in all details and agree, balance powers and responsibilities . If this is not done at the level of ideology, then the subject of budget management will very willingly use the rights, and responsibility for the budget deficit or cash gap will be shifted to the financial unit.

Types of budgets

Regardless of the level of development of the company and its structure, the planning process usually uses several types of budgets:

• functional budgets;
• operating budgets (for the Central Federal District, Central Federal District);
• budget of income and expenses (BDR);
• cash flow budget (CFB);
• budget according to the balance sheet (BL);
• consolidated investment budget (consists of the budgets of individual projects).

Taking into account the specifics of the company’s activities, you first need to allocate functional budgets. This can be done based on the following principles:

• one budget describes only one process (sale of goods, delivery of goods, and so on), there should be no processes left uncovered;
• the presence of a budget is determined by the realities of the business (for example, if the company does not receive income from financial activities, then drawing up a budget does not make sense).

Table 2 shows the types of functional budgets for the main activities of a manufacturing and trading enterprise. Each organization determines the grouping of items for core and non-operating activities independently, but, as a rule, this is done according to specific income in the total amount of revenue. If a company, in addition to operating activities, also conducts financial and investment activities, then each of them should also use its own budgets, for example:

• budget for interest on loans and borrowings;
• budget for valuation and insurance of collateral;
• development budget (in the context of each individual project);
• reconstruction budget.

Table 2. Types of company functional budgets by core activity

All budgets should be allocated according to the financial structure. For example, the production budget for the enterprise as a whole will consist of the budgets of individual production workshops (or factories), and all operating budgets will subsequently form the company’s general budget for its core activities.

Regardless of the type, the budget consists of separate items. The directory of articles must be compiled on the basis of an audit of all business operations of the company.

The following important points should be taken into account:

• grouping business transactions based on their belonging to the Central Federal District forms the operating budget of this Central Federal District;
• any expenditure or income transaction must have an item in the budget of income and expenses, according to which it can be reflected;
• according to the significance of the operations and their share in expenses or income, it is possible to create one item for one operation (but, as a rule, one item corresponds to a group of operations);
• budget items should reflect the real needs of the business, so you should not include an item in the directory with an eye toward the future;
• the degree of detail of the items depends on the amounts of the transactions recorded. For example, if under the item “Other expenses” the total amount exceeds other detailed budget items, then independent items should be distinguished from other expenses, giving it great weight.

For income and expense items, it is better to use a single hierarchy, for example, a three-level directory of income and expenses:

• level 0 – primary item of the same type of business transaction;
• level 1 – consolidation of zero level items;
• level 2 – consolidation of first level articles.

Cash flow budget items are formed on the basis of income and expense budget items by excluding items not related to cash flow (depreciation, exchange rate and amount differences, revaluation of inventory, scrap, etc.) and adding items that reflect cash flow (advances, acquisition of fixed assets and intangible assets, capital repairs, receipt of loans, other inflow, etc.).

The balance sheet budget can be built on the basis of the balance sheet, expanding it to the necessary detail.

In general, management accounting is not strictly regulated and, in order to fully satisfy the information needs of all interested users, there is no need to be afraid to intelligently combine elements of various accounting systems, including RAS and IFRS, in management forms.

Stages of organizing budgeting in an enterprise

Planning should be focused on key business goals. For each specific company, goals are determined by market (segment and market share), production (production structure, technologies used, resources), financial (sources of financing, opportunities for attracting loans) and social (satisfying consumer demands) factors. Strategic plans can be formulated in qualitative and quantitative terms, but most importantly, they must be completely understandable to management and reflect development guidelines.

From a practical perspective, coordination of goals is the most important stage of planning; heads of functional areas should take part in this process, since the company’s goal is subsequently decomposed into the goals of divisions. It is in the process of agreeing on strategic goals that heads of functional departments develop agreed methods for solving existing problems, evaluate tasks, and analyze limitations, opportunities and risks. The relationship between strategic goals and performance indicators of individual central financial districts is presented in Diagram 2.

Scheme 2. The relationship between strategic goals and performance indicators of individual departments

Thus, drawing up budgets is the collective work of all key managers of the enterprise. Considering that any collective work must be organized, the financial director acts as the coordinator of the planning process.

In addition, you can create a collegial body - a budget committee. The tasks of the budget committee are as follows:

• ensure the formation of a budget for the year, quarter, month;
• monitor the execution of the company’s budget, identify reasons for deviations of actual values ​​from planned ones, develop measures for the purpose of budget execution;
• involve officials and responsible employees in the budget management process;
• identify unlawful actions on the part of officials and employees, determine measures to prevent similar situations in the future.

The process of organizing budgeting consists of a number of successive stages:

1. Analysis of the market and financial situation of the organization.
2. Identify key or limiting factors.
3. Drawing up forecasted functional budgets.
4. Consolidation and balancing of the operating budget.
5. Formation of the investment part of the budget.
6. Determining the need for financial resources.
7. Formation and approval of the tax budget.
8. Drawing up a consolidated budget for the company.
9. Familiarization of all interested participants with the budget.
10. Organization of a budget execution control system.
11. Discussion of the procedure for adjusting budgets.
12. Assessing the company's activities from a budget perspective.

It is advisable to describe each stage down to the level of procedures, required information, responsible persons, deadlines, and results (see Table 3).

Table 3. Example of detailed planning stages

In the process of discussing the budget, it is important not to descend to the level of convenience and personal interest of some managers, who include the revenue part of the budget from the perspective of a pessimistic forecast, and the expenditure part with a large unreasonable margin. An open and honest discussion of indicators, statistics of past periods, and most importantly, an understanding that such an approach creates the illusion of easy achievability of results and reduces work efficiency should come to the rescue.

Reviewing and approving the budget within the company and working with business owners allows for an iterative process if the indicators put forward for protection do not satisfy them. Iterativeness involves working out indicators “top-down” and “bottom-up” and will further allow you to manage the company’s resources with maximum efficiency.

To formalize the process of agreeing on indicators at each stage, it is recommended to keep a protocol in which all required improvements, deadlines, and responsible persons are recorded.

It is advisable to complete all work on drawing up and approving company budgets for the year before the start of the planning period. In case the process is delayed for various reasons (duration of approval of strategic goals, unpreparedness of managers, lack of a process coordinator, etc.), a budget rule can be provided: monthly financing of the company’s operating activities is carried out in the amount of no more than 1/12 of the funding limits of the year preceding budgeting, which will allow not to disrupt the production process.

During the planning process, it is recommended to prepare several budget options - pessimistic, most likely and optimistic. Then, using mathematical processing methods and the expert opinion of the process participants, agree on versions and approve the company’s budget for the planning period.

In the process of work (budget execution), when the planning horizon is reduced and, under the influence of various factors, the enterprise is faced with a deviation of actual indicators from the planned ones, a situation is possible when the deviation from the specified budget values ​​is economically justified and changes to the budget are necessary. In this case, we can talk about using flexible budgets. A flexible budget is a budget whose indicators can change depending on the level of business activity of the company.

Practice shows that a flexible budget is the most preferable and is an effective operational tool in the work of a manager, that is, an analytical version of the company’s approved annual budget, while the boundaries of flexibility must be developed before the start of the budget process and formalized. For example, one of the rules of flexible budgeting allows you to adjust budget values ​​within the static annual budget, redistributing limits by item or by central financial district (CF). Several states of the company's annual budget are quite justified and allow us to evaluate the work of managers at different levels: according to the static version, the owners evaluate the company's work; According to the flexible budget version, adjusted to the actual reporting quarter/month, the work of the heads of the Central Federal District is monitored by the budget committee.

Budgeting as a cost management tool

In order for planning not to be a mere formality, and for the execution of budgets to be as close as possible to the plan, it is important to correctly determine possible income and expense standards.

Guidelines when planning the expenditure side of the budget can be industry average data on expenses and profits or data from competitors from public companies, as well as own statistics for past periods. For example, if the industry average profit is taken as a basis, then, having determined the revenue part, you can normalize the amount of expenses and distribute it among individual items.

The Pareto principle “20/80” and ABC analysis are applicable to all budget items, using which all costs can be divided into three groups:

• the first makes up about 80 percent of the enterprise’s total expenses, as a rule, these are several cost items of group A;
• the second is approximately 15 percent of total expenses - these are group B items;
• third - 5 percent of total expenses - small items of group C.

Depending on the level of items, it is necessary to organize budget management - it is important to focus on the first and partially on the second group of costs, that is, on those that have the most noticeable impact on the financial result and cost of production.

One of the main tools for controlling costs is rationing, which is the development of limiting (in absolute or relative terms) cost indicators. The principle of rationing can be applied to both direct and overhead costs, both variable and constant.

To set standards for a number of cost items, you can use industry indicators, analyze the work of competitors and historical data. The list of internal standards may be as follows:

• material costs per unit of production, per ruble of revenue, profit;
• inventory standards at the end of the period;
• operating and utility costs per 1 sq. m of usable area;
• cost of workplace equipment per 1 employee upon hiring;
• cost of office supplies per 1 employee;
• premises insurance per 1 sq. m of usable area;
• cost of communication services per 1 employee (plus depending on position);
• travel expenses (daily allowance, accommodation, travel tickets) per 1 employee (plus depending on the position), etc.

Normalization can also be used in situational modeling. Standard values ​​of indicators should be reviewed at certain intervals, for example, once a year before the start of the budget process.

Budgeting and control, adjustment, revision

Each company has its own rules for assessing budget execution, and the corridor of deviations by item can also be different. In this regard, questions very often arise: is it worth adjusting the budget during its execution and what principles should be followed?

In order for all participants in the planning process to understand the procedure for executing the budget, it is necessary to formulate the principles for its revision. It is best to do this at the stage of developing a budget strategy and determine:

• the level of the budget subject to adjustment;
• the level of deviations at which adjustments are made;
• adjustment period;
• timing of adjustments (and possibly also how many times one budget is adjusted);
• responsibility of the head of the Central Federal District. It should be borne in mind that if the same problem is raised every month, then the manager’s responsibility should already be financial.

To determine the level of deviations by item, you can use a larger budget model. It is worth modeling those items that affect the company’s key performance indicators, for example, turnover, EBITDA, EBITDA margin.

As a rule, a deviation of actual values ​​from planned values ​​by 3–5 percent is considered acceptable. But if other threshold values ​​are determined during the modeling process, then it is worth focusing on them, since the size of the threshold deviation depends on how far the company is from the break-even point (or how close to it).

Examples given in the financial literature show that the ratio of the total change in income and expenses is on average 1: 3, that is, a reduction in income or an overrun of 10 percent leads to a decrease in profit by 30 percent.

Many other dependencies have been derived that need to be taken into account both when planning and when analyzing the budget. In particular, the following:

• With a growing business (or market), revenue should be the focus;
• with a stable business (or market), you need to control profits;
• when it falls, it is especially important to control the constant part of expenses.

Practice shows that cost reduction is a labor-intensive and difficult process and often the efforts are not comparable with the savings effect. For example, for a trading company, the main share (70%) of expenses is the rental of retail and warehouse premises and wages. The remaining items account for 30 percent, and if we subtract from them energy resources, equipment maintenance, and commodity losses (even only in terms of natural loss), then 10 percent of expenses will remain, which, even with a complete reduction, if they give a financial effect, it will be negative will affect the production process. However, this does not mean that nothing needs to be done. It is necessary to analyze and collectively develop measures, taking into account the significance of the consequences. The work of managers in managing budgets should also be assessed, although this assessment is not always material; moreover, at some stage the process of collegial discussion of the problem itself becomes a motivational factor for optimizing work.

From personal experience, I can say that you can adjust the budget no more than once a month, and if there are no force majeure circumstances in the external environment and within the company, then only within the annual limits, without affecting possible savings on protected items. Protected items are expenses that are necessary to ensure the normal production process, that is, expenses that an enterprise will unconditionally incur regardless of the level of its business activity. Typically, such expenses include payroll, taxes, and rent.

All deviations can be divided into controlled and uncontrolled. So, if the reason for the deviation was an increase in energy tariffs or an unpredictable change in the cadastral value of a land plot, then we can talk about uncontrolled changes. If transportation costs have increased, then this should be looked into. There are two main reasons for deviations of actual values ​​from planned ones: the issue was not worked out at the planning stage or control over the process was weakened at the execution stage. It is necessary to identify what exactly is at stake in the case of a specific deviation and provide feedback to the process owner. This helps to increase the discipline and responsibility of managers: not everyone is pleased to explain the reason for adjusting the budget by simple non-performance of line personnel when the contract was not agreed upon on time. Moreover, systematic (more than three times) budget adjustments by the head of the Central Federal District, considered by the budget committee, as well as systematic budget overruns are considered improper performance of official duties.

Example

In our company, adjustments to the budget of the Central Federal District are possible only within the framework of the company’s approved annual budget and involve changing limits between items, periods, and divisions.

The adjustment process is automated, and changes to the limit for a budget item are made by generating an application for budget adjustment in the accounting system. The adjustment itself is considered both as planned and outside the plan.

Planned adjustments are made when drawing up the budget for the upcoming period (quarter/month) from the 20th to the 25th of the current period, that is, before the start of the planned period.

If during the current period there is a need to increase expenses under an item and there is no source of funding for another item, then such a change in the limit is recognized as an unscheduled adjustment and is made at the expense of the General Director’s fund.

The budget is adjusted by the head of the Central Federal District or a person authorized by him by generating a program document, and both the budget of income and expenses and the cash flow budget are automatically adjusted.

In terms of planning variable expenses that depend on turnover, the limit is also changed automatically (the software is configured accordingly), and if the revenue plan is exceeded, then the amount of the plan in absolute terms for variable budget items increases.

To simplify the process of budget control and reduce the time for its adjustment, the level of budget items that fall into the focus of control has been determined - it is not necessary to control a separate item, as a rule, this is a group of items of expenses incurred. The process of monitoring compliance with the limit is necessarily tied to the article and to the CFU.

Here are a few specific rules for budget control and adjustment of budget values.

1. Payment to the creditor (supplier for services rendered or goods received) for any overexpenditure in terms of variable budget items is made after changing the limit of a specific division (based on an order) within the company's standard or after temporarily lifting control over the ratio of expenses and turnover (if the standard for the Central Federal District it is not advisable to change and the standard for the company has not been exceeded).
2. The limit on the payroll item is changed by the personnel directorate within the approved annual budget by redistributing amounts between financial functions and periods; the overexpenditure of the payroll budget by other items is not covered. The budget for the payroll item is reduced in the event of structural changes or changes in business processes (for example, reduction of service personnel and the involvement of cleaning companies).
3. It is allowed to transfer the budget in the current period between financial institutions within the same budget items.
4. It is prohibited to make expenses by increasing income without adjusting the limit for the corresponding budget expenditure item (for example, travel expenses at the expense of non-operating income). In this case, it is necessary to adjust the budget for the expenditure item according to the general rules.

To increase flexibility in managing the budget and use additional opportunities to cover its deficit, it is worthwhile to provide for a separate item when planning, a kind of reserve fund. It can be formed as a percentage of trade turnover or other base, or simply in absolute terms, indexing the fact of the previous year. Such a fund, by decision of the director or budget committee, is spent on an unscheduled increase in the limit on the budget item of the Central Federal District, as well as on financing the item “Penalties, fines”, if it is not possible to compensate for these expenses at the expense of the guilty official. It is possible that at the end of the reporting period, savings will be identified for some budget items that can be accumulated on the item of the same name, and subsequently any head of the Central Federal District has the right to approach the budget committee with an initiative to redistribute the “Savings” item. Of course, he will need appropriate justification.

Budgeting automation

In order for the built planning system not to remain on paper, in regulations, but to be developed and implemented in practice, it must be supported by IT solutions.

If we talk about what is primary - the accounting system or accounting principles and the concept of budget management, then each enterprise determines this independently, depending on the level of business development, its diversification, and the stage of the life cycle. At some stage, the main tool for planning and control will be MS Excel, its capabilities are great, it is convenient to use, but as the company grows, the level of automation should also increase, and the high level of IT specialists provides almost unlimited possibilities for automation. For example, in our company, operational control of budget execution is automated, the development of a full cycle of planning and control of payments, and accounting of contracts in the system is underway.

Obviously, the program will not replace an experienced and competent specialist, but timely, systematized information will definitely allow you to streamline all accounting processes, increase the efficiency of accounting, and assess the current financial situation of the enterprise and its prospects.

Introduction

1. Budgeting in an enterprise: the essence of the goal and features

1.2 Types of budgets and their goals

Conclusion

List of used literature

In the modern Russian economy, one of the most important is the national economic problem of identifying the reserves for the economic development of an enterprise and the formation of its internal investment resources.

One of the important tools for enterprise management in a market economy is budget planning (budgeting). Budgeting technology involves comparing the planned values ​​of current performance indicators with the actual values ​​for making management decisions. This element is new for Russian enterprises, and in this case we will talk about budget management.

Budgeting is considered as a universal management tool aimed at organizing and optimizing the business system in order to increase its competitiveness.

Modern trends in the field of management determine that the construction of a budgeting system should be based on an in-depth study of the market, an understanding of the clientele and counterparties of the enterprise, the involvement of a large number of managers and specialists of different levels of responsibility in the process of budgeting and enterprise management, which confirms the relevance of the chosen topic of the course work.

The purpose of the course work is to follow the budgeting system as an element of the enterprise management system.

To achieve this goal, the following tasks were identified:

· reveal the functions and essence of the budgeting system;

· identify the pattern of formation of the budgeting system in the system of enterprise plans;

· identify approaches to assessing the effectiveness of the budgeting system and identifying reserves for its improvement.

The object of study of the course work is the budgeting process that enterprises carry out in the process of carrying out economic activities.

The subject of the study is enterprise budgeting systems.

The works of L.I. are devoted to the problems of increasing production efficiency and introducing a budgeting system. Abalkina, A.G. Aganbegyan, S.I. Abramova, V.A. Afanasyeva, V.V. Buzyreva, V.H. Voitolovsky, I.G. Galkina, O.G. Zhuikova, I.V. Eremina, Yu.I. Efimycheva, I.K. Komarova, O.P. Korobeynikova, Yu.A. Lavrikova, V.A. and other scientists.

1.1 The essence and functions of budgeting

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

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

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

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

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

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

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

Budgeting is not without reason considered as the basis of financial discipline in companies. At the same time, the necessity of identifying centers of responsibility is put forward as an inevitable postulate for creating such a system.

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

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

Budgeting as a management technology includes three important elements:

· budgeting technology, which represents the sequence of development of budgets, the procedure for consolidating budgets of different levels and functional purposes, types and forms of budgets, the composition of planning targets, internal norms and regulations, procedures for drawing up and the procedure for adjusting budgets;

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

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

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

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

1.2 Types of budgets and their goals

Budgeting creates the prerequisites for increasing the efficiency of use of the company's resources and represents a high-tech means of operational and financial planning, providing a prompt assessment of the company's performance and, if necessary, the ability to adjust plans in a timely manner; it promotes the unification of the efforts of all divisions of the company to achieve its goals.

Budgeting as a process includes certain stages. The main stages are:

· formulation of tasks;

· calculation of available resources;

· negotiations between stakeholders on budget figures;

· coordination and verification of components;

· final approval;

· distribution of the approved budget.

When setting up budgeting, one of the primary problems that need to be solved is determining the composition (format) of budgets, primarily their items. This is especially important for operating budgets, since there are no legally regulated forms of intra-company budgeting, and each company independently makes decisions both on the composition of budget forms and on the composition of planned indicators. In other words, the composition of operating budgets is the prerogative of the developers of the budgeting system for each company.

Nevertheless, in theory and practice, a certain set of operating budgets has been developed. This includes budgets:

· sales;

· production budget (production program);

· material costs (inventory);

· direct labor costs;

· general production expenses;

· shop cost;

· commercial expenses;

· management expenses;

· general business expenses.

It is during the development of operating budgets that the level of accuracy of forecast calculations and the degree of detail of planned indicators are set, and approaches are developed and specific methods are applied to reduce the influence of environmental uncertainty factors.

Sales budget. It provides a sales forecast by type of product and for the company as a whole, broken down into planned periods (year broken down by quarters; quarter broken down by months; month broken down by decades, weeks).

The sales budget is compiled in physical and monetary terms and serves as the basis for the formation of other budgets. Sales volumes of each type of product can be shown in relation to various sales conditions: region, season, type of buyers (wholesale, retail), etc. The longer the budgeting period, the lower the accuracy of the sales volume forecast. The most moving factor here is future selling prices. Therefore, it is advisable to indicate in the budget the optimistic and pessimistic, most probable values ​​of sales volumes, thereby, as it were, setting a corridor of possible future results, including future profit levels.

The production budget is a production plan taking into account finished product inventories at the beginning and end of the budget period in physical units of measurement for individual types of products and for the company as a whole. Production volumes are planned in accordance with the sales budget. When developing this budget, external factors play a lesser role and can be more accurately forecast for the year and even longer periods.

The material cost budget contains information on the costs of raw materials, supplies, purchased products, components per unit of finished product and their needs for the planned volume of production by type of product and the company as a whole. The calculation is carried out in physical and cost units. The budget may also include a calculation of the volume of purchases of planned materials, taking into account expected consumption and stocks in the warehouse. When forming this budget, much depends on the validity of the norms and regulations in force at the enterprise, as well as on the warehouse policy and the policy of working with suppliers. In other words, the reliability (accuracy) of forecasts here can vary quite widely.

The budget for direct labor costs contains information about the labor intensity of manufacturing each type of product produced and for the company as a whole. The need for labor costs is calculated in man-hours and in value terms. Calculations are made on the basis of data from the production program, the labor intensity of manufacturing a unit of manufactured products and internal company standards for the cost of one man-hour. As a rule, the development of this budget does not cause any particular difficulties due to the certainty of the remuneration systems in the company.

The general production (shop) expenses budget contains, as a rule, information on the costs of remuneration of administrative, managerial, engineering, technical and support personnel directly employed in the divisions of the main and auxiliary production; rental payments for leased production property, costs of maintaining and operating equipment, travel and other types of expenses associated with general production activities during the budget period.

In the workshop production cost budget, the costs of materials and wages are brought together, and the share of overhead costs attributable to the workshop cost is calculated. In the budget, it is important to highlight variable and fixed costs for each type of product. It should be borne in mind that the structure of the workshop cost budget depends on the method of management cost accounting (Direct Costing, Standard Costing, regulatory accounting, etc.).

The business expenses budget includes current expenses associated with the sale of products, including transportation costs, commissions, and expenses associated with marketing activities. It is recommended to divide these costs into constant and variable for a more reasonable calculation of the total cost and profit.

The management expenses budget contains data on remuneration (salaries) of administrative, managerial, engineering, technical and support personnel of the company's management apparatus as a whole, as well as travel and other general organizational expenses during the budget period. The general business expenses budget includes other general plant (company-wide) expenses associated with the maintenance and operation of machines and equipment used in the general interests of the company, contains data on remuneration (salaries) of administrative, managerial, engineering, technical and support personnel of the company’s management apparatus as a whole , as well as travel and other general organizational expenses during the budget period. In a budgeting system, operating budgets act as a source of reliable data for the development (preparation) of three main financial plans (budgets), namely the income and expense (profit and loss) plan, the forecast balance sheet and the cash flow plan, which together allow us to assess the future financial condition of the enterprise. If it does not ensure the achievement of the goals and objectives set for the management of the enterprise for the planned period, then the operating budgets are adjusted and, accordingly, new versions of the three main financial plans (budgets) are obtained. This process continues until the future financial position of the enterprise satisfies managers. Modern budgeting systems as integrated systems of operational intra-company planning, accounting and analysis should also ensure control over the progress of budget execution and their timely adjustment if necessary. Thus, budgeting links and tracks operational and financial plans together to help achieve the goals and objectives set for managers in the most efficient manner.

1.3 Features of budgeting in enterprises of various sizes

The budgeting system has its own characteristics depending on the type of business, organizational structure, as well as the size of the enterprise.

Currently, many large companies use a whole range of strategic and operational management tools, the most important component of which is budgeting.

The budgeting system of large companies must ensure active intra-company coordination of activities in all key areas and elements, covering changes in economic assets and their sources, identifying risks and reducing their level, increasing operational flexibility, which is the main tool for implementing the organization’s strategic objectives. A real long-term increase in the efficiency of a large enterprise through the use and creation of competitive advantages with a target orientation towards increasing the value of the company is possible only if the current activities of the enterprise are planned and controlled based on strategic goals and tactical tasks that ensure their implementation, which are embodied in specific budget indicators .

The use of budgeting in a large enterprise is effective if it is based on general scientific principles of planning. The latter make it possible to justify the need for management decisions and predict the likelihood of obtaining the expected results of the activity of an economic entity. Correct compliance with them creates the prerequisites for the effective and efficient operation of an enterprise of any form of ownership. Various types of budgets formed during the functioning of the budgeting system do not exist autonomously from each other, but as a system. Therefore, the budgeting system is built in accordance with the management structure of the enterprise, the presence of branches and subsidiaries.

Currently, there are many types of budgets used depending on the structure and size of the organization, the distribution of powers and the characteristics of the activity. Organizational and technical procedures for implementing a budgeting system at a large enterprise include the following stages:

· development of strategic goals and their specification by tactical tasks to determine the framework and directions of operational budget planning and control;

· diagnostics and improvement of the existing organizational structure and structure of planning bodies at the enterprise;

· diagnostics and improvement of the enterprise information system;

· diagnostics of the state of the existing planning system;

· determining the availability of a special document regulating the process of planning and monitoring the activities of the enterprise;

· training of specialists;

· direct implementation of the budgeting process and its automation.

The implementation of a budgeting system at a large enterprise should take place in stages. At the first stages, it is necessary to use only a few elements, gradually complicating the system in case of successful completion of certain stages of increasing the level of financial culture of management and staff. Small businesses often do not use a budgeting system. Implementing a budgeting system is expensive and therefore beyond the means of most small businesses. In addition, the introduction of a budgeting system is advisable only when simpler enterprise management mechanisms no longer work.

Thus, budgeting is part of the management system and constantly interacts with it. The interaction of management and budget systems occurs within the framework of a pre-developed mechanism for introducing the budgeting process into the enterprise management system.

The structure of the budgeting system and its effectiveness depend on the size of the enterprise. The introduction of a budgeting system is advisable only in large enterprises.

2. Budgeting system as an element of the enterprise management system

2.1 Budgeting in the enterprise plan system

In the enterprise planning system, there are long-term and short-term (current) budgets, as we have already mentioned. At the same time, long-term budgets are primary in relation to short-term ones, because it is on their basis that the short-term budget is drawn up, but the enterprise is managed through the short-term budget, because it is it that provides the criteria for making current decisions, and based on the analysis of its execution, decisions are made about adjusting long-term budgets or even company goals.

Therefore, budgeting in the enterprise planning system should be understood as enterprise management through short-term budgets. Then there is a need to understand the place of budgeting in the overall enterprise management system and its relationship with other elements, for this we consider Figure 1. Appendix 1.

As can be seen from the figure, the starting point is the mission of the enterprise - this is what the enterprise wants and knows how to do. The mission is changing, but very slowly. Closely related to it is strategy - the basic idea of ​​how exactly the company makes money.

The last link is budget management, i.e. fulfillment of the mission and implementation of the enterprise management strategy. Budgeting is the lowest level of planning, at which the cost of actions is directly planned, through which the entire vertical of plans is implemented - both strategic and operational (Fig. 2 Appendix 2).

Each level of this scheme forms a separate control loop and has its own content. For example, at the goal setting level, it is considered what exactly the company wants to achieve; at the strategy level it is planned how the company wants to achieve its goals, and at the operational level - how the strategy will be implemented

Since the subject of our consideration is budgeting, we will reveal it in another diagram presented (Fig. 3, Appendix 3). “Budgeting” begins at the moment when the plans (very different) and budgets of the enterprise are distributed among the centers of financial responsibility that make up the financial structure.

This distribution can occur in very different ways - both “from above” and “from below”, while this does not matter to us; What is important is that each Center for Financial Responsibility (FRC) draws up or receives items from each of the three main budgets that relate specifically to it, or receives items from each of the three main budgets that relate specifically to it:

· income and/or expenditure items from the budget of income and expenses;

items that reflect the inflow and outflow of funds from the cash flow budget and

· articles reflecting changes in assets and liabilities.

Combining the data for the relevant items of each CFR will give us a Profit and Loss Statement (income and expenses), a Cash Flow Budget (receipts and payments) and a Balance Sheet (changes in assets and liabilities). If this merger occurred during the planning of activities, then the documents received will be of a predictive nature, and if during control, then they will be factual.

Both forecast and actual data allow in advance or, accordingly, in fact, to conduct a full financial analysis and assess the liquidity, profitability and value of the enterprise. At the planning stage, these indicators are needed in order to understand how realistic it is for the enterprise to achieve its goals. If they show that the goals are achievable, then the plans are accepted for execution; if not, the budgeting process goes through a “second iteration” and the conditions under which achieving the goals becomes possible are determined - and so on until the optimal one from the management’s point of view is found enterprise option.

2.2 Budgeting in the enterprise management cycle

In budget management, all the same stages of the cycle are visible, acquiring the specificity characteristic of this level:

· the decision-making and planning stage turns into the budget development stage;

· the execution stage becomes the stage of collecting information on budget execution (actual budget data);

· the control stage turns into the stage of plan-fact control of budget execution;

· the analysis stage involves the analysis of budget reporting (plan-actual, factor analysis, analysis of the effect and effectiveness of execution, etc.);

· the stage of forming management influence becomes the stage of adjusting budgets.

Let's look at each stage in more detail.

1. Planning (development of budgets). The company has already set its goals, including financial ones, and has developed a strategy corresponding to these goals. Quantitative parameters of goals and strategy become guidelines for establishing the current performance indicators of the enterprise. Based on these guidelines, each Central Federal District forms its budgets by item. At the enterprise level, these budgets are consolidated, which forms three main budgets: Cash Flow Budget (CFB), Income and Expense Budget (IBC), Balance Budget (Management Balance Sheet). The enterprise's forecast plan in budget format, prepared and agreed upon through iterations, after analysis for compliance with the set goals, is approved by management and becomes a directive document, mandatory for execution by all central federal districts (and the enterprise). It is clear that in order to clearly organize such a “multi-pass” process at the enterprise, appropriate regulations must be developed and approved.

2. Accounting for actual data. While the enterprise as a whole and each Central Federal District are implementing the plans in real practice, within the budgetary management circuit there is a process of taking into account the actual performance indicators of the Central Federal District and the enterprise for the same items for which planning was carried out - one to one. At the same time, each Central Federal District conducts its current production and financial activities based on its budget (being within its framework), moreover, being responsible for its compliance. If the budget is drawn up correctly, this practically guarantees that the company will achieve its planned financial goal.

3. Control of deviations. To monitor compliance with budgets in real time, emerging deviations of actual data from planned ones are constantly monitored (monitoring in the format of plan-actual deviations), which allows both each Central Federal District and the enterprise as a whole to quickly identify negative trends and prevent their development at an early stage. stages.

At this stage, a certain moment of analysis appears, but it is too weak to talk about analysis fully - we are only talking about tracking an emerging deviation, especially a negative one, so that it does not turn into a problem.

4. Performance analysis and reporting. The analysis is carried out at all stages of budget management: first, plans are analyzed for their compliance with the financial goals of the enterprise, then, in the current mode, emerging deviations are analyzed to prevent the strengthening of negative trends, and the last analysis is carried out on reporting on the actual implementation of the budget of the Central Federal District and the entire enterprise. This “final analysis”, which should be carried out both at intermediate stages (decade, month, quarter - the frequency depends on the specifics of the enterprise’s activities, primarily on the duration of the production and operating cycles), and after the end of the budget period (year).

The depth of the analysis is determined by the tasks for which it is necessary to obtain data, but in general the following “immersion levels” are distinguished:

· analysis of plan-actual deviations in magnitude and direction. At this stage of analysis, we decide whether the deviations are desirable or not, significant or negligible.

· factor analysis of deviations. Already from the name of the stage it is clear that we are talking about identifying the reasons (factors) that predetermined the deviation of the actual value of the indicator from the planned one. At this stage, the question is decided what the nature of the factor is: subjective or objective, long-term or random, and whether this factor needs to be taken into account for the future, when adjusting plans. In principle, the analysis could already be considered complete at this stage, since access to the formation of managerial influence has already been obtained; however, sometimes another stage is distinguished:

· analysis of the effectiveness of budget execution, which identifies deviations, their causes and all other attributes not related to the fact that the actual volumes of work (sales, production) deviated from the forecast value. But we will return to this in section 20, devoted to analysis.

5. Making management decisions. The results of the analysis are used to make appropriate management decisions: in the current mode - to adjust the current budget, and after the end of the budget period - to form a new budget for the next period. Thus, the actions are repeated in the order already described.

At the same time, attention should be paid to the fact that the implementation of operational plans simultaneously means the implementation of some, even the smallest, part of the long-term (strategic) plan of the enterprise. If the company does not maintain current indicators linked to strategic goals, then the strategic plan to achieve them will not be fulfilled.

Of course, the direction and magnitude of the “failure to withstand” are of fundamental importance here: if the deviations are frankly random and/or simply negligible, then this may not have any effect on the implementation of the strategic plan.

The situation with desirable deviations is more interesting. Usually their appearance, and even more than once, means that the plan was not drawn up intensively enough.

And if they are not taken into account in a timely manner in the adjusted budget, this can lead to “relaxation” of the team, loss of motivation and deterioration in the quality of work - with all the ensuing extremely unpleasant consequences.

2.3 Budgeting and strategic management of the enterprise

Budgeting is organically integrated into the strategic management system and helps, through daily activities, to implement the long-term strategy of the enterprise. The relationship between budgeting and strategic management is illustrated by the diagram in Fig. 4. Applications 4. The process begins with the formation of a business ideology.

The formation of a business ideology involves, first of all, the formulation of a mission (block 1), in accordance with which all further activities of the enterprise will be determined:

· goals will be set (block 2), including financial ones;

· a strategy has been developed to achieve them (block 3);

· a BSC map has been prepared - indicating 4 perspectives: finance, customers, processes, personnel / infrastructure or, when managing without a balanced scorecard, an action plan for the implementation of the strategy (block 4), within which, for example, the purchase of new equipment is provided - from -for physical or moral wear and tear of the old one.

To implement this set of measures, the enterprise uses its organizational structure (block 5). If we are talking about the purchase of equipment, then in the organizational structure of the enterprise there is a division functionally responsible for carrying out such activities. Let in our example it be the Supply Department (block 6). In financial terms, all planned activities will be presented in the Financial Plan (block 7), where the line “Investments” will appear.

On the basis of the organizational structure, taking into account the distribution of responsibilities, a financial structure will be created (block 8), within which the Cost Center "OS" will appear (Procurement Department, block 9). After launching the budgeting process (block 10), the financial plan will turn into budgets that will be calculated by each central financial district and, as a result of the consolidation of which, the company’s budget will be obtained (block 11) in the form of 3 main forecast budgets - BDDS, BDR and Balance. Since our separate task is the acquisition of equipment, we must also add the Investment Budget (block 12) to this mandatory triad. They will be analyzed (block 13) to see how they lead the enterprise towards its goals, and after approval they will become a working document by which the enterprise will live for the entire next planned period (usually a year).

Thus, the implementation of the annual plan will mean the implementation of the next stage of the strategic plan, and budgeting as an operational management system will be organically integrated into the long-term (strategic) management system. This is how successful companies around the world are run.

3. Using the budgeting system at Navarros LLC

3.1 Economic characteristics of the enterprise’s activities

Restaurant "Navarros", full name of the limited liability company "Navarro's Bar & Grill", began its work on April 17, 2007. The restaurant "Navarros" is named after its owner and chef "Yury Navarro".

The Navarros restaurant is a place renowned for its traditions of truly Mediterranean hospitality. Sunny cream colors with bright orange splashes, comfortable sofas with light drapery, covered vintage armchairs in pastel colors and dark wood cabinets, soft pre-sunset lighting, Spanish ceramics with sayings inscribed by the hand of an experienced calligrapher - everything here is created in order to feel cozy and joyful. the homely atmosphere that distinguishes traditional Mediterranean restaurants.

The whole family comes to Navarros LLC with small children, who can be left with the clowns and animators who perform on weekends. Classic Italian dishes coexist peacefully with traditional Peruvian gastronomic motifs. The author's vision of taste, combined with the preferences of restaurant guests, gives birth to the culinary eclecticism of Navarros LLC, where fresh, dizzying aromas coexist with familiar sketches on the theme of home cooking.

The restaurant is presented on two floors, combining two halls, designed in the style of a “European courtyard”, and a bright, cozy bar area. Modern technical equipment (air conditioning system, lighting, sound) makes this establishment convenient for banquets and receptions. The restaurant staff has extensive experience in holding events of any complexity.

Let's analyze profits and profitability. Data for assessing the dynamics of profit indicators for 2007 are given in table. 3.1.

Table 3.1

Financial results of activities of Navarros LLC

The table shows that the amount of profit before tax increased in the reporting year by 1315 thousand rubles, which amounted to 51.8%. This led to a corresponding increase in the profit remaining at the disposal of Navarros LLC.

The following positive changes can be noted in the dynamics of financial results. Net income is growing faster than sales profit and profit before taxes. The increase in total profit was due to an increase in profit from the sale of products by 1,147 thousand rubles, or 31.8%, as well as a reduction in other operating expenses by 66 thousand rubles, or 4%, and non-operating expenses by 438 thousand rubles ., or by 13.7%. At the same time, the dynamics of financial results also include negative changes. At the end of the year, compared to the beginning, there was a reduction in other operating income by 24 thousand rubles, or 2%, and non-operating income by 312 thousand rubles, or 12.2%.

Table 3.2

Dynamics of profitability ratios of Navarros LLC

In general, the enterprise has seen an improvement in the use of property. For every ruble of funds invested in assets, the company received more profit in the reporting year than in the previous period.

If previously every ruble invested in property brought almost 11 kopecks. arrived, now - 12.5 kopecks.

Return on equity increased during the reporting period by 2.06 percentage points. The profitability of sales in terms of net profit also increased. The reason for the positive changes in the level of profitability was the faster growth rate of profit received from the results of financial and economic activities (profit before tax) and net profit, compared to the growth rate of property value and sales volume. An increase in sales profitability can mean an increase in demand for products and an improvement in their competitiveness.

3.2 Evaluation of the enterprise budgeting system

Let us present the procedure for drawing up budgets for Navarros LLC. The overall budget of an organization consists of an operating budget and a financial budget. The main activity of the company is the restaurant business. Based on this, the operating budget is represented by the budgets for the purchase of goods, sales and distribution costs. The purpose of preparing an operating budget is to generate a profit and loss statement. Determining the target sales volume and structure (unlike most other stages of development, the draft consolidated budget) is more of a management art than a routine procedure. However, the basic principles of the relationship between cost indicators, price levels, and physical volume as factors that determine sales income are the methodological basis without which effective sales budget planning is impossible. First, a sales forecast is compiled (Table 3.3). .The sales budget is the starting point in the budgeting system, since the sales plan (in the previous terminology - product sales plan, order plan, supply plan, etc.) affects almost all other budgets of the enterprise (all business plans of the company).

Table 3.3

Sales budget of Navarros LLC for 2008

In 2007, the total revenue from sales of restaurant products amounted to 34,374 thousand rubles. For 2008, it is planned to sell products and provide services for a total amount of 46,405 thousand rubles, which is 135% or 12,031 thousand rubles more than in 2007.

The organization's main source of income is food sales. In 2008, sales growth is planned at 138% or 10,433 thousand rubles. The growth in the volume of services for holding festive events is planned to increase by 123% or 859 rubles compared to 2007. Income from field services in 2008 is planned at 4,176 thousand rubles, which is 122% more than in 2007.

In general, revenue growth for Navarros LLC in 2008 is planned at 135%. Next, we will calculate expected cash receipts in 2008. To do this, consider the cash flow budget.

A special feature of Navarros LLC’s work with its debtors is that installment payments for food produced and services provided are provided for a period of no more than 3 weeks.

Table 3.4

Cash flow budget for Navarros LLC in 2008

As can be seen from Table 3.4, the amount of cash receipts is lower than revenue. This is explained primarily by the fact that buyers with deferred payment pay for products later, when the products have already been sold. In 2008, accounts receivable are expected to increase by 144% or 3,120 thousand rubles. An increase in accounts receivable is not a positive factor, since it temporarily diverts funds from the company’s turnover, however, with an increase in sales volumes and taking into account the modern development of the commercial lending system, an increase in accounts receivable indicates an increase in sales volumes. In general, the organization plans to receive funds in 2008 in the amount of 43,285 thousand rubles. Cash inflows are not uniform across quarters and tend to increase, which is primarily due to a decrease in demand for products and services at the beginning of the year.

Carrying out restaurant activities, Navarros LLC has partnerships with a large number of clients.

To increase product sales, the organization uses a commercial lending system, so the dynamics of accounts receivable is of great importance in the effective management of the company. Let's consider the budget for the movement of receivables (Table 3.5).

Table 3.5

Accounts receivable budget of Navarros LLC for 2008

In 2008, accounts receivable will amount to 10,152 thousand rubles. If we consider the quarterly movement of accounts receivable, we can see that at the beginning of the year its size decreases, and by the end of the year it increases, which is due to the seasonality of demand for the company’s products and services.

The growth of accounts receivable is a negative factor, but the organization can smooth out its negative impact by increasing its accounts payable to suppliers. The organization has reserves for the growth of accounts payable, which will be discussed in detail when analyzing the accounts payable budget.

The basis of the restaurant's activities is product inventories. In budgeting, inventory planning is carried out using a purchasing budget. Let's review it, table. 3.5

The need for inventory directly depends on sales volume. The growth in sales volumes at Navarros LLC is planned at 138% (Table 3.5). To fulfill the sales plan, the company must plan for an increase in the volume of inventory.

You can determine the volume of inventory using the following formula:

Inventory plan = (∆Vvyr*Vtzp)+(Vtzp*10%), (3.1)

· ∆Vvyr – revenue growth rate, %

· Vtп – volume of inventory;

· (Vtzp*10%) – guaranteed reserve.

According to the balance sheet, inventory at the end of 2007 amounted to 9,394 (excluding VAT) thousand rubles.

Inventories in the planned year 2008 will be:

TK plan = (9394 * 138%) + (9394 * 10%) = 13898 thousand rubles

In addition, when planning inventories, changes in demand throughout the year must be taken into account. Let's make the calculations in the table. 3.6

Table 3.6

Procurement budget of Navarros LLC for 2008

The purchase budget for Navarros LLC products for 2008 is planned in the amount of 31,350 thousand rubles. The sale of inventory is planned in the amount of 26,846 thousand rubles. Balances at the end of the year will amount to 13,898 thousand rubles.

The next stage of budgeting in an enterprise is drawing up cost and cost budgets. An organization's distribution costs are one of the general indicators of the intensification and efficiency of resource consumption. The profitability of the organization depends on their size and degree of change.

First, let's review the business expenses budget.

To plan business expenses, you must use the “percentage of sales method.” This method will be used for variable distribution costs. Let's review the budget for commercial expenses, table. 3.7

Table 3.7

Business expenses budget of Navarros LLC

In 2008, an increase in commercial expenses is planned by 128% or 401 thousand rubles.

The amount of fixed expenses, such as rent, cash management services, is determined for each item separately. Rent payments for office buildings and vehicles are determined on the basis of extended lease agreements, taking into account the increase in the cost of utilities. The same approach was used to determine the amount of expenses for banking services.

Next, we will consider the budget for management expenses, table. 3.8. Management expenses include expenses not related to the production or commercial activities of the enterprise (salaries to managers, maintenance of non-productive property, business trips, communication services, interest on loans, taxes, etc.). It is advisable to take the composition of these costs taking into account the elements of cost.

Table 3.8

Management expenses budget of Navarros LLC for 2008

In 2008, it is planned to increase management expenses by 128% or 1973 thousand rubles. At the end of budgeting the organization’s costs, we will review the production cost budget.

Table 3.9

Production cost budget of Navarros LLC for 2008

The increase in the cost of sales and provision of services is planned at 128% compared to 2007. The growth of direct material costs is planned to be 30% compared to the previous year.

The increase in cost is significantly lower than the increase in revenue from sales and services, which is generally a positive factor and will have a positive impact on the financial condition of the organization.

Navarros LLC has several types of creditors:

· suppliers and contractors with whom the enterprise pays for the goods (work, services) supplied;

· own employees with whom the company pays wages;

· the state budget with which the enterprise pays taxes;

· state extra-budgetary funds with which the enterprise settles under the unified social tax;

· credit institutions or other borrowers with whom the company pays off loans and advances.

In 2008, Navarros LLC plans to increase accounts payable to suppliers by 3,120 thousand rubles in order to smooth out the negative impact of the growth of accounts receivable.

The organization's debt to other creditors is planned to be kept at the 2007 level. Let's review the budget for settlements with creditors, table 3.10.

Table 3.10

Budget for settlements with creditors of Navarros LLC for 2008

In 2008, accounts payable will increase for the enterprise as a whole by 27% or 3,120 thousand rubles. The growth of accounts payable in 2007 amounted to 34%, thus, there is a decrease in the growth rate of accounts payable compared to the reporting year. The next stage of financial planning is drawing up a budget for the income and expenses of the enterprise.

The budget of income and expenses (Table 3.11) is intended for planning the financial results of the work of Navarros LLC.

In traditional accounting, it corresponds to the profit and loss statement (form No. 2 of the appendix to the balance sheet). This is the resulting planning document, since here, when drawing it up, the planned profit values ​​are calculated, and making a profit, as you know, is the goal of Navarros LLC.

That is why it is extremely important to know the size of the profit in advance and only then can plans be developed for using the profit for the purposes of investing, repaying loans and borrowings, and solving other economic issues. When drawing up a budget for income and expenses of Navarros LLC, it is taken into account that when planning revenue (income) and costs (expenses), it is carried out according to “shipment”. The values ​​of other operating and non-operating income and expenses are planned to be kept at the 2007 level.

Table 3.11

Budget of expenses and income of Navarros LLC for 2008

In 2008, it is planned to increase net profit by 3111 thousand rubles, i.e. the planned increase compared to 2007 will be 2 times.

A positive impact on the growth of net profit is primarily exerted by a higher increase in sales revenue compared to an increase in cost. In general, a significant improvement in the financial performance of the enterprise is expected in the planning period; however, a high profit margin is included in the enterprise budget, and in market conditions the company bears various risks that may have a negative impact on the activity of the enterprise. In this case, Navarros LLC has a high risk of under-fulfilling the budget. The next and final stage of budgeting for Navarros LLC is the preparation of a forecast balance sheet. The calculation results are presented in table. 3.12

Table 3.12

Projected balance sheet of Navarros LLC for 2008

In the planning period at the end of the year, compared to the beginning of the year, an increase in the balance sheet currency is expected by 6,489 thousand rubles. The growth of inventory and equity is of great importance for the restaurant. In conclusion, the calculation and analysis of financial indicators is carried out in order to assess the rate of change in financial indicators in the planning period.

Let's calculate liquidity indicators in 2008.

Table 3.13

Forecast of liquidity indicators of Navarros LLC in 2008

According to the table. 3.13 the absolute liquidity ratio in the planning period of 2008 will decrease slightly, but the critical liquidity ratio and the current liquidity ratio will increase, which indicates the liquidity and reliability of the organization’s business.

In general, the use of the budgeting system at Navarros LLC is a justified way of financial planning for the enterprise. Using the budgeting system of Navarros LLC, move on to developing a long-term enterprise development program, which will allow you to gain additional competitive advantages in the market.

The calculated data is distributed among departments for execution and control.

3.3 Methodological approaches to improving the budgeting system in small businesses

Budgeting is currently very popular, since this system is used both in Russia and abroad.

The use of budgeting as a quality tool of the modern management system of Navarros LLC should ensure:

1) increasing the efficiency of financial and economic activities (growth of economic indicators) primarily through cost reduction;

2) increasing management efficiency (increasing quality indicators - transparency, manageability, flexibility, etc.).

The main problem of the budgeting system is the risk of adopting an incompletely calculated budget, as well as for quarterly reporting, which means analyzing the results for every three months and more frequent revision of forecasts.

All these factors raise one important question - “How can the budget planning process be optimized so that it becomes possible to plan, revise forecasts and stimulate management in the shortest possible period.”

As an approach to improving the budgeting system of Navarros LLC, it is necessary to divide the requirements for business management into four relevant areas, creating appropriate structures for them.

1. Forecasting;

2. Determining the direction of development of Navarros LLC;

3. Company value management;

4. Control over financial expenses.

Forecasts are performed centrally based on a financial model that receives data from sources inside and outside the company.

The direction of development of the budgeting system is developed using a system of interrelated balanced indicators that determine the financial and intangible goals of commercial activity. Cost management is carried out by analyzing the competitive environment (benchmarking) in a given area and best-in-class companies - in the interests of performing such related functions as managing labor and financial resources. This allows you to set goals based on comparison with other organizations, which is much preferable to comparison with your own performance from the previous year.

In such a case, Navarros LLC will focus its cost reduction efforts on achieving a competitive advantage. Finally, control over the expenditure of financial resources is carried out by a special department, which meets once a month and sets priorities in the dynamics of income.

Navarros LLC has been operating successfully for several years, constantly improving its position. However, not all companies can carry out a complete overhaul of their budget planning system. Having studied the activities of Navarros LLC and other companies, it is necessary to implement the following measures to improve the budgeting process.

1. It is necessary to separate the implementation of the budget and the bonus process. Thus, based on the results of work over the last year, I paid bonuses for fulfilling the financial plan. This creates problems when setting goals, since employees strive for guaranteed bonuses, while management wants more meaningful indicators. This, of course, does not mean that there is no need to pay monetary incentives based on financial performance. One way to solve this could be to pay bonuses based on the direct profitability of the company (without taking into account the achievement of the set goal).

Another solution is when bonuses are awarded based on performance in comparison with direct competitors, which also removes the problem of achieving goals.

2. It is necessary to separate budgeting and forecasting. The budget is uniquely linked to resource allocation, which requires internal management and analysis. Forecasts can be based on financial models and change every month, quarter or depending on circumstances.

3. Use external benchmarking to set cost control targets. This will allow you to focus on real goals, taking into account opportunities for advancement in a competitive environment. In addition, the use of external benchmarking allows you to obtain high-quality services at reasonable prices.

4. Determine the course of development using financial and non-financial performance indicators, since financial goals are easy to manipulate, because improving the financial situation in a short time can be done by reducing the quality of service and the level of competitiveness. By focusing on the main non-financial indicators, this situation can be avoided.

5. Make a clear connection between core non-financial activities and financial performance, clearly tracking changes in their relationship. It is no secret that many of the improved performance indicators of the financial plan are due to cuts in individual budget items, made without taking into account the real impact of such a step. It is not surprising that the seemingly expected savings were not achieved. Only by realizing what opportunities for development does the use of statistical control methods provide can one judge with complete confidence about future achievements. Over time, planned optimization of the development process will undoubtedly help improve the organization's performance, but such progress requires planning and management. By linking together the production plan, development plan and financial plan, you can get a reasonable and perfect budget. Navarros LLC can achieve this only by introducing specialized software that allows you to coordinate these processes.

6. Separate operating expenses and capital investments. At first glance, this is obvious and is the basic principle of the work of financiers, but many organizations ignore the indisputable fact that they must make at least small improvements every year in order to simply remain competitive. When a business is thriving, these small expense items disappear into operating costs and may not even be noticeable. Unfortunately, when budgets are tight, these “optional” costs are easy to cut. A business may seem profitable, but in fact its competitive strength is gradually being lost, so a reasonable approach is to clearly delineate these expense items in order to control and monitor them.

Thus, we can conclude that in order to build an effective budgeting system at Navarros LLC, it is necessary to carry out serious work in the field of budgeting.

To begin with, the budget process at the enterprise must be studied as thoroughly as possible and a budgeting system must be created that fully meets their needs and operating conditions, which will result in a competitive advantage.

Improving the planning system is to ensure end-to-end communication between planning horizons - from strategic planning (usually for several years) to tactical (for a year, quarter) and operational (for a month, a week). Of course, for Navarros LLC, planning horizons have their own range depending on time, but their interrelation must be ensured.

In addition, it is also necessary to improve the system for determining the cost of production and the standardization system (standard prices, expense ratios, working capital standards).

Organizing control over the implementation of plans involves collecting and consolidating information on the actual implementation of planned budget indicators, identifying plan-actual deviations, analyzing the causes of deviations and making management decisions. To ensure management efficiency, deviation standards are determined: emergency, excess, permissible, and control of each deviation range is delegated to the appropriate level of enterprise management.

Improving the management reporting system is aimed at monitoring and analyzing the activities of responsibility centers and the entire company as a whole. Reports and accompanying explanatory notes must contain plan-actual deviations, factor analysis (changes in price, volume), explanations of deviations that have arisen, a list of necessary management actions and methods for their implementation.

Improving the existing financial and economic management system should include:

· identifying the specifics of the company’s activities and developing a unique budgeting system, adapted to the company and taking into account the characteristics of its business;

· implementation of constant changes (including refraction of old stereotypes and ineffective work methods) during the execution of all work (Change management);

· given the relatively long period of development and implementation of the budgeting system (from 4 months to a year or more), constant adjustment of the results is required, since the company itself changes during this period;

· training company employees in new methods and technologies of work, training a team of specialists from among the company’s employees who can not only maintain the functionality of the system, but also develop it after implementation - this is the key to the successful operation of the budget management system.

After improving planning and accounting methods, forming end-to-end regulations for the interaction of departments in the planning and control process; developing forms of plans and budgets and forms of management reporting; formation of all regulatory documents necessary for the full functioning of the budgeting system.

In market conditions, planning and control are important functions of financial management. Budget systems that include planned and reporting data are common in practice. A budget is a quantitative expression of a plan, a tool for coordinating and monitoring its implementation on a short-term basis.

The practical significance of the thesis is based on the following stages:

· procedures for forming operating and financial budgets;

· analysis of the financial condition of the organization;

· mechanism for monitoring and analyzing budget execution.

When developing forecast data, budgeting principles must be observed and economic and statistical methods must be used.

Budgeting is a modern technology of financial management, which allows not only to obtain a reasonable operational calculation, but also to organize the management of the enterprise’s activities on the basis of an estimate - plan, to strengthen control over costs and cash flows, and to achieve better financial results.

The budget system forms a budget structure, in accordance with which the main final budgets of the organization are formed: the budget of income and expenses, the cash flow budget, the balance sheet budget.

A prerequisite for budgeting is the delegation of financial decisions to financial responsibility centers (FRC).

The course work was carried out on the materials of Navarros LLC. The main activity of the company is the restaurant business.

The organization's main source of income is sales of restaurant products. In 2008, product sales growth is planned at 138% or 10,433 thousand rubles.

The growth in food sales is planned to increase by 123% or 859 rubles compared to 2007. Income from field services in 2008 is planned at 4,176 thousand rubles, which is 122% more than in 2007.

In general, revenue growth for Navarros LLC in 2008 is planned at 135%. The use of a budgeting system at Navarros LLC is a justified way of financial planning for an enterprise. Using the budgeting system of Navarros LLC, proceed to the development of an enterprise development program, which will allow obtaining additional competitive advantages in the market.

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