Экономические науки/10.Экономика предприятия.
Bragina O.S.
Supervisor: Yerysh L.A.
Donetsk National University of Economics and Trade
named after Mykhailo
Tugan-Baranovsky
JUASTIFICATION ADVANTAGES AND
DISADVANTAGES OF BUDGETING AT MODERN COMMERCIAL ENTERPRISES
The relevance of the studied topic. In connection with
the increasing globalization, competition sharpens in the international market. Modern domestic trading
companies must have an efficient management system in order to adequately represent their country and
actively operate in the international market. As a result, the management of
many enterprises is adopting the budget management of commercial enterprises.
Budgetary management of commercial enterprises is a system that enables
continuous monitoring, analyzing, correcting and predicting changes in
financial condition and measurement of financial business opportunities for the
future.
The aim of the research is to identify the
advantages and disadvantages of budgeting at modern commercial enterprises.
The object of the research is the process of
identifying the advantages and disadvantages of budgeting in modern commercial
enterprises.
Theoretical
development of accounting for management purposes which increased domestic and
foreign competition was accompanied by an increase in costs of goods and led to
a change in operating procedure of management. Budgeting, as a new organizational
model of governance, spread in the 20-ss of the nineteenth century to control
the costs of transnational corporations [1].
Budgeting
mechanism has been widely used in the world practice for many years. Problems
setting internal budgeting for leading countries of the world have been solved
20-25 years, although budgeting system are improving now.
According
to foreign scientists Jai K. Shim and H. Dzhoyl Syhelya, budgeting plays the
role of a coherent management of business units. At the beginning of the
reporting period, the budget is a plan or standard that formalizes management
expectations regarding sales, expenses and other financial transactions in that
period. In the end, it plays the role of a meter, which allows managers to cope
with disabilities: to compare the results with the planned follow-up and adjust [2].
Domestic
scientists, including Form IA, consider budgeting as a process of drawing up of
the operational financial plan for a short period, usually developed within one
year, reflecting costs and income funds in the implementation of specific
economic activities [3].
There
are such benefits of budget management, that are based on the opinions of
foreign and domestic scientists and economists:
- inducement to planning. The
initial stage of budgeting encourages employees, departments and companies look
ahead and plan, taking into account all the circumstances, hoping for probable
income and expenses, learning what they depend on.
- budgeting
leads to planning. Budgeting makes it possible to coordinate the activities of
employees and departments within the enterprise, and enables improved resource
allocation process.
- budgeting performs on
organizational role. Budgeting establishes a framework in which appropriate
work of individual employees, departments and the company as a whole, and
identifies areas of their activities.
- budgeting affects
employee motivation. Budgeting encourages employees to work more
conscientiously because budgets set goals that employees, department or companies
as a whole should reach by the relevant date.
- budgeting serves as
a control. Budgeting enables individual employees, departments and companies as
a whole to monitor their activities to comply with the actual results of
planned indicators.
- budgeting serves as
an analysis. Budgeting serves as a comparison tool in achieving the desired
results. Analysis of the budget makes it possible to make adjustments in time.
Budgeting
has its disadvantages. Identifing disadvantages is the first step to minimize
their negative impact. Budgeting has the following disadvantages:
- budgeting
has the complexity and high cost of implementing a system of budgeting.
- budgeting takes
time. Even if budgeting is well established and implemented in accordance with
established procedures, it still requires a great amount of time, especially at
the stage of implementation.
- budgeting
may not have the motivational effect. If budgets are not communicated to each
employee, they have virtually no impact on motivation and results, and are
perceived only as a means to measure the performance of employees and tracking
errors [4].
Conclusion. Thus, budgeting enables
enterprises to continuous monitoring, analyzing, correcting and predicting
changes in financial conditions and measurement of financial business
opportunities for the future. Active implementation identified by the study,
the benefits and minimizing disadvantages will enable modern commercial
enterprises to function effectively in the market.
Literature:
1.
Давидюк Т.В., Сливка Я.В. Аналіз показників продажу у системі бюджетування/
Т.В.Давидюк, Я.В.Сливка. – Житомир.держ.технолог.унів-тет, Житомир. –
Економіка: реалії часу, 2012. - №2(3).
2.
Джай К. Шим. Основи комерційного бюджнетування/ Джай К. Шим, Джойл Г. Сигель.
– СПб.: Азбука, 2001. – С.13.
3.
Бланк І.А. Стратегія і тактика управління фінансами. - Київ.: МП «ИТЕМлтд»
СП «АДЕФ-Україна», 1996. - 534 с.
4.
Гершун А., Горский М. Переваги і недоліки
бюджетування [Електронний ресурс] Режим доступу: http://techbalanc.ru/upravlenie-resursami-kompanii/4-4-preimushchestva-i-nedostatki-byudzhetirovaniya.html