Yulia Lopatnyuk

Specialist Business Economics

Petro Mohyla Black Sea University

Implementation of budgeting system in the enterprise

Abstract

This paper focuses on the effective implementation of budgeting for domestic enterprises.

For efficient use of budgeting in the company must decide on the objects budgeting need implementation of automated systems, range of responsible persons of budgets, budgeting principles, system monitoring budget execution and others.

Object of budgeting is a certain activity unit area project, business, etc., for which the organization be formed budgets will be their implementation and control of . Their classification is a matter of discussion. If a company produces a relatively homogeneous products appropriate nomenclature, in such conditions, you can use the budgeting process operations. However, in our view selection of individual operations facility budgeting is too detailed and time-consuming process. When analyzing the holding concern, other associations of enterprises should be budgeting for facilities to isolate target areas of the enterprise. But nowadays the most common objects of responsibility is responsibility centers, which companies distinguish themselves with the peculiarities of business. Due to the fact that the classification of objects varies greatly, we propose a new technology to select items budgeting for various businesses. Yes, every entrepreneur first determined the size of your business, then based on the size selects the type of budgeting (for projects, operations by responsibility centers), and then specifies and classifies the selected object. This technique allows you to create a hierarchy of budgets, have a clear system of control and track which units "fill" and who "consume" the budget.

Keywords: Budgeting, paper, balance, the budget production, Standards, capital budget.

Introduction.

This paper is organized as follows: First, one of the most important preconditions for the functioning of budgeting is the development of scientifically sound principles and their implementation and use in practice. In science outline the principles of science, complexity, optimality, unity, completeness, accuracy, ranking, variance, balance, provide feedback, and integration. If the company will abide by them, the budgeting system will run smoothly and it can be confidently resist the development of future indicators. Second, in the development and implementation of the plan should be given to organizing the process control performance as budgeting without feedback - it wasted time spent. At this stage, the use of budgeting in the planning system determined approach to the analysis of the financial performance of the enterprise, the depth of analysis, regulation and responsible employees. Latest in turn may form the so-called budget committee - a permanent formal group which is responsible for the overall coordination of the implementation of budgeting and completely responsible for this process. Although "the budget office" along with the leaders of responsibility centers or other facilities budgeting and cost the company dearly in the hold, but this team provides effective to achieve the result. Third, also worth noting that in the contemporary economy budgeting is actively moving towards automation, so the decision by management on the implementation of integrated management systems

Budgeting is a complex system of measures and covers the main aspects of the enterprise - production, marketing, finance and coordinate them. Moreover, taking management decisions at all levels of management emphasis is on the financial side, which gives the opportunity to achieve objectives such as costs, maximize profits, the balance borrowed resources from areas they use as to the extent and in time, and therefore contributes to overall improvement in the financial condition of the company.

The main problem is the difficulty of budgeting management decisions related to future events and the need of forecasting. The uncertainty of the external environment can cause the idea of the impossibility of planning. But there is an inverse relationship: if there is a stable environment, it is not necessary to plan, because it is in this case a simple process of transferring evidence in future periods. This uncertainty dictates the need, complexity and importance of planning.

For the successful implementation and subsequent operation of budgeting in the company must comply with the following conditions:

1. improvement of the organizational structure of the enterprise, which will clearly define the functions and responsibilities of managers;

2. a clear structure for all processes as those responsible persons to automate operations and simplify the budgeting process;

3. standardization of data that will establish their common use by all business units of the company;

4. integration of budgeting with organizational structure and information technology company that will improve the effectiveness of the control system.

Thus, when corrected these deficiencies and establish optimal management organization, namely in financial planning and budgeting will enable enterprises to manage and achieve their goals.

Diagram 1. Indicators used in the process of benchmarking

Source. Compiled by the author

So, in 1995, E. Monkhouse in their studies found a tendency to use a standard of comparison of financial indicators in small and medium enterprises.

The methodology of the development budget in the national economic literature developed, usually very superficial, is borrowed from foreign literature and cover only the general procedure of budgeting. Given the above the above, we consider it necessary to stay in more detail on Budgeting farms.

Diagram 2. Flowchart budgeting of enterprise

Source. Compiled by the author

In our opinion, must begin to restore the classical scheme of budgeting:

1. Budgets up year by month;

2. Developing a single format for all budget tables responsibility centers;

3. The planning costs are divided into fixed and variable;

4. Expenditure is planned only for compelling articles, all minor articles grouped and scheduled one sum;

5. Implementation planned by groups of products, namely in top positions (positions, share sales which is 80% of total business), all other realization grouped and scheduled one sum;

6. List of groups or senior positions should not be large, so the system was responsive to change.

In our opinion, in the preparation of budgets should be used documents close to the accounting documents. This will greatly facilitate budgeting and make easier the comparison of planned and actual data. Much easier budgeting process also allow modern computer technology.

Conclusions.

After some investigation, we concluded that the current budgeting is popular among medium and large businesses and has many advantages. These include significant cost savings, the ability to form units and control their operating costs, the availability of a clear understanding of current and future cash flows and tools to advance adjustments in case of unforeseen circumstances. Budgeting is now a universal system, which allows to plan the future activities of the company and has tools for editing and its control. However, we must pay attention to the presence of many problems associated with the implementation and support normal functioning of budgeting. Yes, entrepreneurs are faced with the problem of selecting objects budgeting, which depend on many factors, both external and internal environment, with difficulties in radical restructuring already working systems. Besides buying automated software that provides a system of budgeting, costs a lot of money, which is not always pays heal on its implementation. But despite the large number of still unsolved theory and practice decisions in planning through budgeting, we argue that this line of business has great chances for the existence and development in the area of research and applied use in planning business.

References:

1. Monkhouse E. The role of competitive benchmarking in small-to medium-sized enterprises // Benchmarking for Quality Management & Technology, Vol. 2, No. 4. – 1995. – P. 44-45.

2. Needles B.E., Powers M, Mills S.K., Anderson H.R. “Managerial Accounting” 5^th ed. – Boston, N.-Y.: Houghton Mifflin Company, 1999. -603 p.

3. Anthony R.N., Reece J.S. «Accounting: Text and Cases» ed./ R.N. Anthony, J.S. Reece. –Illinois: Homewood, 1989. – 1030p.

4. Cassel C., Nadin S., Gray M.O. The use and effectiveness of benchmarking in SMEs // Benchmarking: An International Journal, Vol. 8, No. 3. – 2001. – P. 212-222.

5. Coopers & Lybrand Consultants, Survey of Benchmarking in the UK. – CBI Manufacturing Council, London, 1993.