Gotsusova A.V., Usachev V. A.

Donetsk National University of Economics and Trade

named after M. I. Tugan-Baranovsky

IMPORTANCE OF BUDGET MANAGEMENT SYSTEM

MANAGEMENT COMPANY

A necessity of any business, especially in today's challenging economic environment, is ensure the effective management based on continuous improvement of business processes. Modern conditions make modern enterprise engaged in a constant search for effective management tools and technologies in order to ensure efficiency, financial stability and handling.

In practice, many companies are already familiar with the individual budget management tools, such as the budget and budgeting. These tools help to improve financial planning businesses. Increasing interest in the budget management of enterprises due to the acute need and the necessity of forming a complex, integrated system that would allow not only to analyze and plan for financial resources, but also to create the conditions and opportunities to achieve their development goals.

Such interest is not unfounded, as the concept of budget management requires, above all, the creation of coherent management company, which would bring into effect a mechanism to increase the efficiency of business. [3].

In this context becomes more urgent consideration and study management aspects of budget management that can extend the idea of it not only as a tool of financial management, but also as an important component of the company's management.

Recently, an increasing number of studies in the areas of fiscal management [1,2,4,5]. Most researchers, such as V.E . Khrutsky, A.A. Vasiliev [2] , Y.D. Batrin [1], E.Y. Dobrovolsky, V.F. Karabanov, P.S .Borovikov [4] in their works focus on issues of budgeting and fiscal management in the context of financial planning. To a lesser degree of attention is paid to the management focus of these tools, although their importance in the management of the company by most experts noted.

Recent studies of N.V. Ruzhanskaya, E.N. Kharitonova [7], A.P. Dugelnogo and V.F. Komarov [5] extend the concept of budgetary management and budgeting as a management technology and a critical component of enterprise management system. In particular, E.N. Kharitonov gives in his work a great attention to the study of place and the role of budgeting in the subsystem operational management of industrial enterprise. Despite the depth and relevance of the studies reviewed, in our opinion, the management aspect of the budget management they still take secondary importance. Priority is given to financial planning technology, which is often seen as an alternative to traditional enterprise planning.

Purpose of the article is to reveal the importance of budget management as an important component of the company's management system.

Management of specific industries should be focused on achieving the goals and ensure the necessary efficiency in production and business activities. Modern industrial enterprise - is a complex organizational system that includes a lot of elements (structural units), contributing to the formation and appearance of even more links between them. Growth in the number of industrial relations within the company ultimately leads to a reduction in control. In fact, the company does not operate by itself, it is led by its management, a relatively small control subsystem. It lags behind regarding the complexity and nature of the relationship of the enterprise, resulting in a situation when the management to lead effectively can not. [4]

The main reason for this growing gap in the system of management of industrial enterprises by weak their orientation toward continuous improvement of production and operations, as well as effective cost management. In this regard, increasing the importance of budget management, without which exercise effective control over costs and effectively manage the production and activity in general is not possible [6, p. 11].

Traditionally regarded as a budget management system of planning, accounting, monitoring and analysis of the company in financial terms, implemented in the format of budgets to responsibility centers. But at the same time, budget management - is a complex process that takes place in the enterprise and integrates a significant amount of interaction between employees in order to achieve results in their work. In this sense, it has the motivational potential [4]. According to the budget office is considered from the perspective of holistic management, as it is a part of the implementation of some basic management functions, including motivation. Then there is a fair question that can be answered: what is the role and manifestation of fiscal management in the management of the company and, in particular, in its most active part of - complex control mechanism that ensures the impact of the factors and resources management, the condition of which depends on the result of the company. Under the management factors understand the elements of control and their relationship, which is the impact of the achievement goals. As resource management are considered material and financial resources, social and institutional capacity, which is implemented using the selected method of management and achievement of the objectives of control [6]

In general terms, a comprehensive management mechanism can be regarded as a functioning system focused methods and tools for managing the impact of the subject to the factors and resources management to ensure cooperation to achieve the goals of the enterprise [3,5]. From the perspective of an integrated control mechanism and analyze its content to determine how the budget office corresponds with the basic elements of governance mechanism, can we consider it a method or a tool of governance? Of course, the method of management of budget management can not be considered because it is not the way to manage the impact, but rather as part of budget management and its implementation uses economic, organizational, administrative and socio-psychological methods of management. But the allocation of budget management to the category of "management tool" has a certain perspective.

Renowned expert in the field of fundamental research organizations A.V. Raychenko detailed analysis of the underlying organizational categories, including the category of "tools" [5,6]. Based on its analysis, it can be concluded that the content and semantic category of "tools" to be considered from two main points of view. On the one hand, it may be very broad understanding of a particular instrument as a separate means of implementation studies or impact on the organization [2, p. 83]. This suggests that a particular tool should contain a research component or impact. On the other hand, A.V. Raychenko defines instrument as a kind of guide one or more functions, the means of their implementation in the target organization [2, p. 83]. From this point of view, a concept which claims to match the category of "tools", in particular the category of "management tool", should provide or assist in the implementation of at least one control function. Depending on how much control functions implemented by means of a management tool, it is possible to judge its complexity and significance as an important component of the control mechanism.

Based on these opinions, the analysis of the concept of "budget management" on three substantive components (research, influence, control functions) in order to match the category of "tools." Content analysis of the concept of "fiscal management" to determine its compliance with the category of "tools" (Table 1) showed that the analyzed concept fully and with certainty can be considered as a "tool" of the control action and, accordingly, "management tool" because it meets the basic components characterizing the direction of research, impact and implementation of the management and opening the general meaning and content of the category of "tools."

A content analysis of the concept of "fiscal management" to meet the category of "tools"

Budget management
component research	component impact	component implementation functions management
monitoring (information gathering) analysis (information) modeling (budgets)	budget figures Actions (operations and procedures of the budget process) Organizational methods (procedures, instructions, provide OMB) Regulation budgeting Delegation of authority and thus responsibility within budget	planning organization аccounting and analysis control motivation

Conclusions. This analysis extends the idea of the budgetary management not only as a means of financial management as well as an integrated management tool, has a complex character in the manifestation and maintenance. The complexity and specificity of the budget management is a result of the organic components of manifestation and impact studies, and thus contributes to a perception of fiscal management as a management tool comprising a diverse set of tools and techniques. All this determines the value of budget management, not only as a significant element of an integrated management mechanism, but also as an important component of the management of an industrial enterprise.

Literature

1. Batrin Y.D. budgeting industrial activities / YD Batrin. - M.: High School, 2001. - 283 p.

2. Vasiliev A.A. Budgeting industrial activities [E resource]. - Mode of access: / / www.cis2000.ru/Budgeting/

3. Gershun Technology balanced management / A. Gershun, M. Gorsky. - Moscow: Olimp-Business, 2005. - 416.

4. Dobrovolsky E.Y. Budgeting: A Step-by-step / E.Y. Dobrovolsky, B.M. Karabanov, P.S. Borovkov, etc. - St.: Peter, 2008. - 448.

5. Dugelny A.P. Budget Office now / A.P. Dugelny, V.F. Komarov. - M. Case, 2007. - 432 p.

6. Kruglov M.I. Strategic management company / M.I. Kruglov. - Moscow: Russian Business Books, 2008. - 768 p.