Course work: Budgeting in the enterprise (for example, a restaurant). Financial planning and development of the company's budget Who is involved in the formation of the budget

5. Technology of drawing up the budget of the enterprise

Enterprise budgeting technology is demonstrated below with a very simple example that describes the relationship between individual indicators within budget tables and the relationship between the totals of individual budget tables as a whole budget. The following system of assumptions was adopted as simplifying factors:

• budget tables are compiled on the basis of dividing the year into quarters,
• the company produces and sells one type of product,
• the company is not a value added tax payer,
• all indirect taxes that are included in gross costs are automatically taken into account as part of the base indicators on the basis of which they are determined (for example, salaries are planned together with accruals),
• Income tax is calculated according to a simplified scheme - the profit is estimated based on the results of the company's work for the year, and then evenly divided into four parts.

Note that such simplifications are not of a fundamental nature, but serve solely to ensure the simplicity and clarity of the budgeting technology.

So, let the company start preparing a short-term financial plan for the next planning year. In accordance with the established tradition, the financial manager draws up a system of budgets on a quarterly basis, having received data on the forecast sales volumes from the marketing department.

The set of information collected is presented below. It should be noted that the initial data are usually presented in blocks in accordance with the list of budgets, which are developed by the financial manager of the enterprise.

The forecast of sales volumes and prices is used as the first block of initial data:

The share of payment in cash in this quarter is 70% of the total revenue, the remaining 30% is paid in the next quarter. Planned stock balance finished products at the end of the planning period (quarter) is 20% of the sales volume of the future period. Stocks of finished goods at the end of the year are planned in the amount of 3,000 product units. The required volume of material per unit of production is 5 kg, and the price of one kilogram of raw materials is estimated at 60 kopecks. The balance of raw materials at the end of each quarter is planned in the amount of 10% of the demand for the future period. The estimate for the required material stock at the end of the year is 7,500 kg. Payment to the supplier for raw materials is made on the following conditions: the share of payment for materials purchased in a particular quarter is 50% of the cost of purchased raw materials. For the remaining 50% of raw materials, the supplier provides a deferred payment, which must be repaid in the next quarter. Payment for direct labor is made on the following conditions: labor costs of the main personnel per unit of production are 0.8 hours. The cost of one hour together with charges is 7.50 UAH.

Overhead costs are represented by variable and fixed parts separately. Planning of variable costs is based on the standard of 2 UAH. for 1 hour of work of the main staff. Fixed overhead costs are estimated at UAH 60,600. for the quarter, and of which 15,000 hryvnia falls on amortization.

The cost of implementation and management is also planned in two parts - variable and constant. The variable part rate is UAH 1.80. per unit of goods sold. The planned fixed administrative and management costs are shown below:

The company plans to purchase equipment in the amount of UAH 30,000. in the first quarter and UAH 20,000. - in the second quarter.

The planned dividend amount is 40,000 per annum, evenly distributed by quarters. The company has the opportunity to take out a bank loan at 10% per annum. Moreover, the payment of interest is made simultaneously with the partial repayment of the principal amount of the debt when interest is accrued only on the repayable part of the loan.

In addition, we will assume that the income tax rate is 30%.

The state of assets and liabilities of the enterprise at the beginning of the planning period is presented in the form of a balance sheet (see Table 19).

Tab. 19. Starting balance of the enterprise

Based on the above data, it is necessary to build a system of enterprise budgets. The calculated system of budgets includes:

1. Sales budget.

2. Plan of production of products (the company produces a single product).

3. The budget for the costs of basic materials.

4. Cost budget.

5. Overhead budget.

6. Cost budget

7. Budget for administrative and marketing costs.

8. Planned income statement.

9. Cash budget.

10. Planned balance.

Sales budget with a schedule for receiving money from the consumer. This budget is prepared using sales forecast, finished product prices and collection ratios. For the considered example, the sales budget is presented in table. twenty.

Tab. 20. The sales budget of the enterprise and the schedule of receipt of money (UAH)

The first two lines of table. 20 are simply rewritten from the original data. The revenue line is obtained by multiplying the sales volume by the price. When scheduling the receipt of money, it is taken into account that the proceeds from sales of the current period come in the form of money only by 70%, the rest comes in the next period.

In the first period, the company plans to receive money on accounts of debtors in the amount of UAH 90,000. This value is taken from the opening balance sheet of the enterprise. Additionally, in the first period, the company receives in cash 70% of the proceeds of the first period in the amount of UAH 200,000, which is UAH 140,000. As a result, the expected amount of receipts in the first period is UAH 230,000. In the second period, the entity expects to receive 30% of the revenue of the first quarter and 70% of the revenue of the second period. In total, this amounts to 480,000 UAH. All other budget indicators are calculated in the same way. In accordance with this budget, the company will not receive 30% of the fourth quarter revenue in the planned year, which is UAH 120,000. This amount will be recorded in the final forecast balance of the enterprise at the end of the year.

The production plan is drawn up on the basis of the sales budget, taking into account the dynamics of the balance of finished products in the warehouse necessary for the enterprise. The production plan is placed in table. 21. Consider the production plan for the first period. The company plans to sell 10,000 units. To ensure an uninterrupted supply of finished products, the company plans the remainder of products at the end of the first period in the amount of 20% of the sales volume of the second period (see initial data), which is 6,000 pieces. Thus, the required production volume is 16,000 pieces. But at the beginning of the first period, there are 2,000 units of finished products in the warehouse. Therefore, the volume of production of the first period should be 16,000 - 2,000 = 14,000 items.

Tab. 21. Production plan

All other indicators of the production plan are calculated in the same way. It is only necessary to emphasize that the planned stocks at the end of the first period are the planned stocks at the beginning of the second period. As for the amount of stocks at the end of the last period (they are also at the end of the year), this number is predicted individually and justified when compiling a block of initial data for the entire budgeting process.

The budget for the costs of basic materials with a payment schedule consists of two parts: calculating the volume of raw materials required for production (a plan for purchasing raw materials) and a payment schedule for these purchases. This budget is presented in table. 22.

Tab. 22. The budget for the costs of basic materials with a payment schedule

This budget is based on production plan, not on the sales plan. Using the standard of consumption of raw materials per unit of production (5 kg.), The planned volume of raw materials for the production of products of a given period is estimated. To ensure an uninterrupted supply of raw materials to production, the financial manager plans a stock of raw materials at the end of the period in the amount of 10% of the demand for raw materials for the next period. For the first quarter, this value is 160,000x10% = 16,000. Knowing the required volume of raw materials to fulfill the plan of the first quarter of 70,000 kg, we estimate the total required volume of raw materials: 70,000 + 16,000 = 86,000 kg. But at the beginning of the first quarter, there are 7,000 kg in stock. raw materials. Therefore, 86,000 - 7,000 = 79,000 kg should be purchased. raw materials. Since 1 kg. raw materials cost 60 kopecks, the total cost associated with the purchase of raw materials is 47.400 hryvnia. The planned raw material costs for all other periods are calculated in the same way. We only note that the planned volume of raw materials stocks at the end of the last period is estimated individually, and not as part of a general procedure. In our case, this is 7,500 kg., Given as part of the initial data block.

The calculation of the payment schedule is carried out in the same way as the schedule for receiving money. In the first quarter, the company plans to pay off accounts payable at the beginning of the year (see the opening balance sheet), which amounts to UAH 25,800. In accordance with the agreement with the supplier of raw materials (see the block of initial data), the company must pay for the supply of raw materials in the first quarter of 50% of the cost of purchases, which is 23,700 UAH. As a result, it is planned to pay UAH 49,500 in the first quarter. In the second quarter, the company plans to pay off the arrears on the purchase of raw materials in the first quarter and pay 50% of the cost of raw materials purchased in the second quarter, etc. When planning the fourth quarter, we assume accounts payable at the end of the year in the amount of 50% of the cost of raw materials, planned for purchase in the fourth quarter. This amount is UAH 27,900. and is placed in the final balance sheet of the enterprise under accounts payable.

Budget of costs for salaries of key personnel is compiled on the basis of the payment system adopted at the enterprise. No matter how complex the payment system is, its planned calculation can always be formalized in the form of appropriate tables. In this example, the simplest piece-wage payment system is used. In accordance with this system, there is a standard for the cost of direct labor per unit of finished product, which is 0.8 hours. One hour of direct labor costs is paid based on the standard 7.5 UAH. in an hour. As a result, a budget of time and money is planned for paying direct labor, which is presented in table. 23.

In the case when budgeting is carried out on a more detailed time basis, for example, every month, the amounts of money that are accounted for as costs (accrued) and the amounts of money that will be paid do not necessarily coincide. In particular, if payment for labor is made, for example, on the 10th day of each month, then the amount wages which is due in February, will be scheduled for payment in March.

Tab. 23. Direct labor cost budget

Production overhead budget compiled using aggregated financial indicators. The fact is that the composition of overhead costs is often large, and planning overhead costs by cost elements is an unreasonably large analytical work. Therefore, all overhead costs are pre-divided into variable and fixed costs, and variable overhead costs are planned in accordance with the planned value of the corresponding baseline. In the example under consideration, the volume of direct labor costs was used as a basic indicator. In the process of preliminary analysis, the standard for direct labor costs was established - 2 UAH. for 1 hour of work of the main staff. This predetermines the composition of indicators in the table of the budget of overhead costs, presented in table. 24.

Tab. 24 Budget of production overhead costs (UAH)

Based on the planned volume of direct labor costs and the standard of variable overhead costs, total variable overhead costs are planned. So, in the first quarter, with a plan of direct labor of 11,200 hours with a standard of 2 UAH / hour, the sum of variable overhead costs will be 22,400 UAH. Fixed costs in accordance with the initial data are UAH 60,600. per month. Thus, the amount of overhead costs in the first quarter will amount to UAH 83,000 thousand according to the plan. When planning the cash payment for overhead costs, the amount of depreciation deductions should be subtracted from the total amount of overhead costs, which are not monetary costs, i.e. the company does not pay for depreciation to anyone.

Estimation of production costs is necessary for drawing up a profit statement and assessing the amount of stocks of finished goods in the warehouse at the end of the planning period. Cost is made up of three components: direct materials, direct labor, and production overheads. The calculation of the cost for the example under consideration is shown in table. 25.

Tab. 25. Calculation of the unit cost

The first two cost components are determined using direct settlement. In particular, if there is 5 kg per unit of production. raw materials at a price of 60 kopecks. per kilogram, then the component of direct materials in the unit cost is 3 UAH. To estimate the amount of overhead in the unit cost, you must first “tie” to a baseline, and then calculate this component of the cost. Since variable overhead costs were normalized using direct labor costs, the total overhead costs will also be “tied” to direct labor costs. It is necessary to estimate the total, not just variable, overhead costs. To do this, let us compare the total amount of overhead costs for the year (it was calculated in Table 2 and amounts to UAH 404,000) with the total amount of labor costs (80,800, as follows from Table 23). It is easy to establish that one hour of direct labor accounts for 404,000 / 80,800 = 5 UAH. overhead costs. And since 0.8 hours are spent per unit of production, the cost of overhead costs per unit of production is 5x0.8 = 4.0 UAH, which is noted in table. 25.

The total value of the cost per unit of production was, according to the calculation, UAH 13. Now it is easy to estimate the amount of finished goods stocks in the final balance sheet of the enterprise. Since the financial manager has planned 3,000 balances of finished goods at the end of the year, in the balance sheet of the enterprise at the end of the year in the item of inventories of finished goods, 39,000 UAH will be planned.

Administrative and marketing budget. This budget is prepared using the same approach as the production overhead budget. All costs are divided into variable and fixed. For planning variable costs, the volume of goods sold is used as a baseline indicator, and not the cost of direct labor, as it was previously. The variable cost rate is UAH 1.80. per unit of goods sold. Fixed overhead costs are transferred to the budget literally as they are presented in the source data. The final budget is shown in table. 26.

Tab. 26. Budget for administrative and marketing costs

In a methodological sense, this budget does not cause problems. The most difficult thing is to justify specific amounts of advertising costs, management salaries, etc. Contradictions are possible here, since usually each functional unit tries to justify the maximum funds in the budget. At the same time, the budget may “fail”, they say “the budget is not rubber”. The methodological problem is how to assess the budget result for various options for the amount of financing of all functional divisions of the enterprise. Here scenario analysis comes to the rescue, which, professing essentially the ideology of flexible planning, considers possible options budget for various components of financing. Of all the options, the one that is most acceptable is selected based on the strategy of the enterprise management.

Planned income statement ... Previously, two bases of enterprise planning were noted: the resource basis and the monetary basis. Within the framework of the resource base, the planning of the company's profit takes place, the presence of which is a necessary condition for the company's ability to generate money. Profit statement inserted in common system precisely for the purpose of verifying this necessary condition. In addition, in the income statement, the amount of income tax is estimated, which is then used in the statement of cash flows. The profit statement for the considered example is placed in table. 27.

In this report, sales revenue is obtained by multiplying the total sales for the year (100,000 units) by the unit price. The cost of goods sold is determined by multiplying the calculated in table. 25 unit cost per total product sold. General and marketing costs were calculated in table. 26.

Tab. 27. Planned income statement (without additional funding)

In this income statement, the amount of interest for the loan is taken to be zero. This is true, since in the process of previous budgeting, the issues of lending to the enterprise were not considered. The need for additional funding should be revealed during the preparation of the statement of funds. In this sense, the version of the planned profit statement, placed in table. 27, should be considered preliminary, since in the process of budgeting money, it is possible that there will be a need to take a bank loan, and then the amount of net profit will decrease.

Cash budget is the final and most important in the whole budgeting scheme. It brings together the financial totals for each private budget. The cash budget reflects all the “good and bad news” of the enterprise. The good news is the receipt of money, the bad news is the payment of money. The total is a cash balance, which can be positive or negative. Table 28 shows the cash budget for the example under consideration. The reader is given the opportunity to track and verify how the data of each individual budget falls into the final cash budget.

Let's note a number of features of this budget. This is, firstly, the simplified nature of the income tax payment scheme, adopted in this example... The amount of income tax determined in the framework of the planned income statement is divided into four equal parts, each part is taken into account in the cash budget of each quarter. To complicate this scheme and make it adequate to the real state of affairs does not seem difficult. This issue is addressed in the analysis of the business situation. Secondly, the investment budget declared in the general budgeting procedure is presented in table. 28 with one line of equipment purchase costs.

28. Cash budget (without additional funding)

As can be seen from the analysis of the data in Table. 28, the resulting budget is in deficit. Thus, it is necessary to provide additional sources financing, which in the framework of this example are reduced to bank lending. Technologically, an additional block is introduced into the budget table - "financing", in which the financial manager must provide for the receipt of a loan and its return, as well as the payment of interest to the bank. Table 29 shows the cash budget, which provides for additional funding.

The work of the financial manager to justify the loan amount provides for the selection of data in the “financing” block so as to implement the principle of a reasonable excess of funds, ie. to plan a cash account at a certain acceptable level, which, within the framework of this example, should not be lower than UAH 30,000. A feature of this work is the need to ensure the coordination of the budget data with the planned profit statement. This need is due to the fact that the amount of interest payments is estimated in the cash budget and is substituted in the income statement. At the same time, the amount of tax payments is estimated in the income statement and substituted into the cash budget. Such a selection “manually” is difficult to do, and you should use a pre-developed software tool.

Table 29 and 30 show the agreed planned profit statement and budget of funds, as a result of the work of the financial manager on the selection of budget indicators.

Tab. 29. Planned income statement (final version)

30. Cash budget (final version)

Completes the system of budgets planned balance of the enterprise ... It is a description of the state of the company's assets and liabilities at the end of the planning period. Tab. 31 illustrates the planned balance sheet of the enterprise.

Tab. 31. The balance of the enterprise at the beginning and end of the planning period

Let's describe the formation of each balance sheet item. The cash item is taken as the total value of the cash budget. Accounts receivable is defined as 30% of the fourth quarter revenue for which the entity plans to grant deferred payment. Raw material stocks are defined as the amount of raw material residues from the table. 22 in the amount of 7,500 kg. at a raw material price of UAH 0.60, which is UAH 4,500. Stocks of finished goods are defined as the product of the balances of finished goods at the end of the year (see Table 21) by the cost of finished goods: 3,000х13 = 39,000 UAH. The item “structures and equipment” is calculated by adding to the initial value of this item the amount of the purchases of equipment. Depreciation on baseline is 15,000 per quarter, i.e. 60,000 per year. This value should be added to the accumulated depreciation at the beginning of the period.

Accounts payable is obtained as 50% of the fourth quarter procurement value, which is calculated in budget 22. Finally, the amount of retained earnings at the end of the year is obtained using the following formula:

Retained earnings at the beginning of the year + Net profit for the year - Dividends paid.

Note that the sum of assets and liabilities of the balance sheet is the same, which is a confirmation of the correctness of the budget. For a specialist who draws up a budget for the first time, and this budget turns out to be quite complex (several types of products, a complex cost structure), the fact that the sum of assets and liabilities coincides looks like a “financial miracle”, although this miracle is the result of using the double entry system adopted in accounting department.

Note also the fact that in this case, the company plans to end the year without financial debts. This condition is not required at all. The company may end the year with a partially unpaid bank loan, and then a certain value will appear in the balance sheet item “bank loan” that will not “unbalance” the balance sheet.

Definition company budgeting can be formulated as a system of actions for the implementation of organizational, strategic and tactical (operational) decisions aimed at ensuring the effectiveness of the processes of formation, distribution, use, redistribution, organization, analysis and control of the turnover of funds of funds (and their non-monetary equivalents) for the implementation of the main the goals of the company.

The main functions of the budgeting system are:

Setting planned financial and economic goals,

Monitoring the achievement of planned goals by timely comparison of actual and planned results,

Analysis of the reasons that caused deviations and adjustment of plans.

Distinctive features of budgeting as a planning tool at the enterprise level are:

- "through" character... The consolidated budget of the company covers all business segments and includes, as its component parts, the operating budget (indicators for current business operations), the financial budget (the amount and structure of financial receipts and expenses), the investment budget (capital construction and the purchase of fixed assets);

- directivity... The draft budget for the current period is approved by the order of the head of the enterprise. Indicators of the approved budget are mandatory for managers and employees of all structural divisions of the company. Based on the fulfillment of budgetary indicators, bonuses are made for the past period, certification of personnel and middle managers, organizational conclusions are made about the work of departments and managers, etc.;

- formalization(representation as a set of numbers). The budget of the enterprise may not include detailed plans for the activities of individual departments and services - the methods of achieving the final results can be left to the head of this department. However, the budget necessarily contains a quantitatively expressed target (planned) result of the unit's activities. Formalization in budgeting is necessary to effectively monitor current budget execution and assess budget execution at the end of the budget period. The company's budget, like any plan, must be clear and not allow ambiguous interpretations, and this is achieved through its presentation in the form of quantitative indicators;

- regularity. The budget of the enterprise is adopted for each period of time, which is approved by the order of the head as the budget period. Regularity is a prerequisite for the effectiveness of budget planning, as it ensures the continuity of the planning process at the enterprise. The budget for each subsequent period is developed based on the results and on the basis of a plan-fact analysis of the budget execution of the ended period. Considered in dynamics, the budgeting process is, as mentioned earlier, a three-stage time cycle, in which the basis of the next budget cycle is the final stage of the previous budget cycle.

Object of budgeting is an enterprise that is a complex economic system. Accordingly, and budgeting process, as modeling (when drawing up a consolidated budget) and reflecting (when carrying out a plan-fact analysis of the execution of the consolidated budget) of an enterprise's economic activities, is based on the application of a systematic approach.

Organizational tasks in the field of budgeting the company's activities aimed at achieving the main goal of the company's budgeting include:

Development and implementation of the necessary organizational documents for budgeting the activities of the enterprise;

Creation and integration of the budgeting process into a unified management system of the company.

Strategic budgeting objectives the company's activities are:

Ensuring a high level of sustainability of the company in the process of its development;

Development and implementation of a long-term budgeting strategy for the company's activities.

Tactical (operational) budgeting tasks consist of:

Effective regulation of the company's financial flows;

Ensuring the optimal use of the company's financial flows;

Maintaining the constant solvency of the company;

Increasing the company's net financial flow.

The fulfillment of these tasks is ensured using a set of management functions: organization, planning, control, accounting and analysis of the company's financial flows.

The importance of budgeting activities the enterprise is determined by the following basic provisions:

Budgeting ensures the financial balance of the enterprise in the process of its strategic development... The pace of this development, financial stability is largely determined by how different types of budgetary financial flows are synchronized with each other in terms of volume and time. The high level of such synchronization provides a significant acceleration in the implementation of the strategic development goals of the enterprise.

Budgeting the activities of the enterprise helps to increase the rhythm of the implementation of the operational process. Any failure in making payments negatively affects the formation of production stocks of raw materials and materials, the level of labor productivity, the sale of finished products, etc. At the same time, optimally organized financial flows enterprises, increasing the rhythm of the implementation of the operational process, provide an increase in the volume of production and sales of its products.

Budgeting allows you to reduce the company's need for borrowed capital. By actively managing resources, you can ensure a more rational and economical use of your own financial resources formed from internal sources, to reduce the dependence of the rate of development of the enterprise on the attracted loans. This aspect of management is of particular relevance for enterprises in the early stages of their life cycle, when access to external sources of financing is limited.

Enterprise budgeting is important factor financial support, accelerating the turnover of capital of the enterprise. This is facilitated by a reduction in the duration of production and financial cycles, achieved in the process of effective management of financial flows, as well as a decrease in the need for capital serving the economic activities of the enterprise. By accelerating the turnover of capital, the company provides an increase in the amount of profit generated over time.

Budgeting provides a reduction in the risk of insolvency of the enterprise. Even for enterprises that successfully carry out economic activities and generate a sufficient amount of profit, insolvency can arise as a result of an imbalance different types financial flows over time. The synchronization of receipts and payments of funds, achieved in the process of budgeting the activities of an enterprise, allows us to establish the factor of the emergence of its insolvency.

Activity budgeting allows an enterprise to receive additional profit generated directly by its financial assets. This is primarily about the effective use of temporarily free balances of cash in the composition of current assets, as well as the accumulated investment resources in the implementation of financial investments... A high level of synchronization in terms of the volume and time of receipts and payments of funds allows to reduce the real need of the enterprise for the current and insurance balances of funds serving the operational process. Thus, the budgeting of the enterprise's activities contributes to the formation of additional investment resources for the implementation of financial investments, which are a source of profit.

Distinguish the following stages of budgeting:

1) communicating details of the budgeting policy and guidelines to those responsible for budgeting;

2) determination of the factor limiting the release of products;

3) preparation of a sales program;

4) initial preparation of budgets;

5) discussion of budgets with senior management;

6) coordination and analysis of reviewed budgets;

7) final adoption of budgets;

8) subsequent analysis of budgets.

Let's consider each of these stages in more detail.

Communicating the details of the budgeting policy. Top management should communicate the impact of the long-term plan on budgeting policy to those responsible for preparing the budgets for the current year. This information can affect planned changes in the range of products sold, or the expansion or reduction of production of any types of products. In addition, other important conditions affecting the preparation of budgets should be identified, such as amendments that should refer to price and wage increases and expected productivity changes. Any expected changes in industry demand and output should also be communicated by top management to the managers responsible for preparing the budgets. It is imperative that all managers are aware of senior management's policy of delivering the long-term plan through the current year's budget in order to map out key areas of business. By communicating information, it becomes clear to managers who is responsible for preparing the budget and how they should respond to expected changes in the external environment.

Determination of the factor limiting production. The activity of each organization (enterprise) is limited at this stage by some factor. For most organizations, customer demand is the limiting factor. However, there may be cases when production is constrained by production capacity, and customer demand exceeds their capabilities. Before preparing the budget, it is necessary to determine the limiting factor, as this determines the starting point for drawing up the annual budget.

Preparation of a sales program. The volume and range of sales determine the level of production of a company, when consumer demand is a factor limiting the volume of production. Therefore, the sales program - essential plan when drawing up the annual budget. This plan is also the most difficult of all, since the total income from sales depends on the actions of the buyers. In addition, the state of the economy and the steps taken by competitors can affect consumer demand.

A variety of methods are used to estimate consumer demand. The simplest method is an estimate based on the views of management and sales personnel. For example, sales staff might be tasked with estimating sales of each product to their customers, or regional sales managers might be tasked with estimating total sales for each region. An alternative approach is to assess consumer demand using statistical methods, the use of which allows you to take into account the general conditions in the enterprise and the market and the growth in sales over previous periods. It may be necessary to research the market if a company intends to launch new products or seek new markets.

Initial preparationbudgets. Managers responsible for meeting budget targets must budget for the areas of activity for which they are responsible. The budget preparation process should be bottom-up. This means that the budget should be born at the lowest level of management and improved and coordinated at higher levels. This approach allows managers to be involved in preparing their budgets and increases the likelihood that they will accept the budgets and strive to achieve the planned goals.

There is no single way to quantify a specific budget line item. Old data can be used as a starting point for budgeting, but this does not mean that budgeting is based on the assumption that if an event occurred in the past, it will occur in the future. Changing conditions in the future should be taken into account, and information about the past can be useful guidance in the future. In addition, executives may use senior management guidance, such as specific guidance on price changes for purchased materials and services, when preparing their budgets. In production activities, you can focus on standard costs as the basis for calculating the cost of the volume of output planned in the budget.

Discussing budgets with senior management. To implement the principle of participation in budgeting, it must start at the lowest level of management. Leaders at this level must draw up their budgets and submit them for approval to higher-level managers, and they, in turn, must combine all the budgets for which they are responsible into one and submit them for approval to their supervisor. This manager now becomes responsible for budgeting at his level.

It is very important that the budget planners are involved in the finalization of the budget and that the manager does not revise the budget without carefully analyzing the subordinate's arguments regarding the introduction of new items. Otherwise, real participation will not be ensured, and subordinates are unlikely to be interested in the execution of the budget, which they did not accept. Care should also be taken to ensure that those responsible for budgeting do not deliberately attempt to achieve easily achievable budgets or deliberately understate budget targets in the hope that the final budget is an easily achievable goal.

Coordination and analysis of reviewed budgets. As budgets move from bottom to top - from boss to boss - in the process of discussion, it is necessary to study the ratio of budget indicators. Such a study may show that some budgets are not balanced with other budgets and need improvement: other conditions, constraints and plans must be taken into account that the manager is not aware of or cannot influence. For example, a plant manager might plan to replace equipment when funds are not available. The economist should identify such inconsistencies and bring them to the attention of his supervisor. Any changes must be made to the budget by the person responsible for preparing it, and this may require a second or even third run of the budget from the bottom up until the budgets are coordinated and acceptable to all parties.

In the coordination process, a budgetary profit and loss account, balance sheet and cash flow statement should be compiled to ensure that they all fit together and form an acceptable whole. Otherwise, further corrections and re-passing of budgets across all instances will be required until the budgetary profit and loss account, balance sheet and cash flow statement become acceptable.

Final adoption of budgets. When the budgets are aligned with each other, they are brought together in a generalized budget (aggregate financial budget), which consists of a profit and loss account, a balance sheet and a cash flow statement. After the approval of the generalized budget, all budgets are sent to all centers of responsibility of the organization (enterprise). The adoption of a generalized budget is the basis for the execution of budgets by the heads of all responsibility centers.

Subsequent analysis of budgets. The budgeting process should not end with agreement. Actual results need to be periodically compared with those planned. The comparison should be carried out on a monthly basis, and the comparison should be reported to the budget planners by the middle of the next month in order to stimulate their activity. This will allow management to determine which budget items are not met and to determine the reasons for the variances. If the problem of deviations is within the purview of management, then appropriate measures can be taken to prevent similar deviations in the future. However, deviations may also appear as a result of the fact that the budget was unrealistic from the very beginning or the real conditions of the budget year differed from the forecasted ones; the budget for the rest of the year is then invalidated.

During the budget year, the budget committee should periodically evaluate actual results and review the company's plans for the future. If there is any change in actual conditions from what was expected, this usually means that the budget needs to be revised. This revised budget will represent revised production programs for the remainder of the budget period. It is important to note that budgeting for the current year does not end at the end of the budget period; budgeting should be seen as an ongoing and dynamic process.

Most budgeting systems serve multiple purposes, and some of them may conflict with one another. For example, planning and incentive functions may conflict. Proposed budgets that cannot be met may be as close to incentive goals as possible and not to be aligned with planning goals. For planning purposes, budgeting needs to pursue realistic goals.

There is also a tension between the planning and performance evaluation functions. For planning purposes, the budget is drawn up prior to the start of the planning period based on expected conditions or circumstances. Evaluation of effectiveness should be based on comparison of actual results with data from adjusted a budget that reflects the circumstances or conditions in which managers actually operate. In practice, many firms compare actual results with the original budget, but if the circumstances anticipated in budgeting have changed, then there is a tension between planning and performance measurement.

The enterprise budget is always developed for a certain time interval, which is called the budget period. The correct choice of the length of the budget period is an important factor in the effectiveness of the budget planning of the enterprise.

As a rule, the consolidated budget of the organization is drawn up and approved for the entire budget period (usually one calendar year). This is due to the fact that over such a period of time, seasonal fluctuations in the market situation are leveled out. Indicatively, that is, without approval as a system of targets and standards that are binding, some budget indicators can be set for a longer period (three to five years). In addition, within the budget period, each of the budgets is broken down into sub-periods.

Budgeting is the process of drawing up and implementing this document in the practice of an enterprise. The budgeting process is not limited to the consolidated budgeting stage. In general, the process is a closed loop of financial management, which includes three sequential stages:

the stage of development and draft of the consolidated budget;

approval of the draft budget and its inclusion in the structure of a scientifically based business plan of the organization;

analysis of budget execution at the end of the current year.

The budget cycle includes the period from the beginning of the first phase to the end of the third phase. The budget process should be continuous, that is, the completion of the analysis of the execution of the current year's budget should coincide in time with the development of the next year's budget. That is, the analysis of budget execution is both the starting and the final stage of the budget cycle.

Let's take a closer look at the content of the stages.

The first stage (the stage of developing the draft consolidated budget) is the preparation of a preliminary draft budget for the next planning year. Particular attention is paid to assessing the implementation of plans for profit and profitability. Such an assessment is based on a careful development of the composition of costs included in the cost of production. At this stage, the production program, its qualitative and quantitative parameters, changes in pricing and credit policies are assessed and a new production potential is determined. commercial organization based on the analysis of the rationality of the use of assets, the development of new technologies and types of products. The prepared preliminary draft budget is adjusted in connection with changes in external and internal conditions.

At this stage, the work of a large number of involved ordinary personnel of planning and economic services and structural units is required, which are approved by budget assignments: main production shops, commercial directorate (sales department), material and technical supply department and others.

The second stage (the stage of approval) is reduced to the preparation of the final draft budget and its inclusion in the structure of a scientifically based business plan of the enterprise.

In small businesses, the consolidated budget is usually developed by the accounting department and approved by the president of the organization.

On medium and large enterprises the decision on the approval of the consolidated budget can be made by:

• - the board of the organization, which includes top management;
• - the president of the organization (in this case, the board of the organization is an advisory body to the president);
• - the board of directors of the organization (Figure 1.2);
• - general meeting of shareholders (the board of directors submits the draft consolidated budget for approval general meeting shareholders).

After approval of the budget, he accepts the force of the order.

Figure 1.2 - Approval of the consolidated budget of a commercial organization

The third stage is an analysis of budget execution based on the results of the past year. At this stage, an analysis of the financial condition of the enterprise is made, on the basis of which the necessary adjustments are made to the tactics and strategy of the economic development of the organization.

In order for the budgeting system to be effective, a number of prerequisites are required, without which this system simply cannot work.

Firstly, the enterprise must have an appropriate methodological and methodological base for the development, control and analysis of the implementation of the consolidated budget, and employees of management services must be qualified enough to be able to apply this methodology in practice. Methodological and methodological basis for drawing up, monitoring and analyzing the execution of the consolidated budget; analytical block (or component) of the budget process.

Secondly, in order to develop a budget, monitor and analyze its execution, you need the corresponding quantitative information about the activities of the enterprise, sufficient to imagine its real financial condition, movement of material and financial flows, basic business operations. Therefore, the enterprise must have a system management accounting registering facts economic activity necessary to support the process of drawing up, monitoring and analyzing the consolidated budget. The management accounting system at the enterprise forms the basis of the accounting unit (component) of the budgetary process.

Thirdly, the budgeting process does not take place in an "airless space" - it is always implemented through the appropriate organizational structure and management system existing at the enterprise.

Concept organizational structure includes:

• - the number and functions of the services of the management apparatus, whose responsibilities include the development, control and analysis of the enterprise budget;
• - a set of structural divisions that are objects of budgeting, that is, those centers of responsibility that appoint the budget plan and are responsible for its implementation.

The budgeting management system is the regulation of interaction between the services of the management apparatus and structural divisions, fixing in the corresponding internal regulations and instructions are the responsibilities of each unit at each stage of the budget process. Since the budgeting process is continuous and repetitive (regular). In the same way, on a regular basis, at the appropriate time, the administrative staff from the structural divisions should receive the accounting information necessary to provide it.

On the other hand, structural subdivisions should receive from the management apparatus the budget assignment and adjustments made to it during the budget period in a timely manner. Consequently, the most important component of the budget process regulations is the internal document flow - a set of regular information flows of the enterprise divisions enshrined in the relevant internal acts and instructions in the process of developing, monitoring and analyzing the execution of the consolidated budget.

Fourthly, the process of development, control and analysis of budget execution involves the registration and processing of large amounts of information, which is difficult to do manually. In the budget process, the level of efficiency and quality of accounting and analytical work is significantly increased, and the number of errors is reduced when using software and hardware. The software and hardware tools used by the structures of the enterprise involved in the budget process constitute the software and hardware block of the budgeting system.

All four components of the budget process are closely related and constitute the infrastructure of the enterprise budgeting system (Figure 1.3). So, for example, the internal document flow is at the junction of the accounting and organizational blocks, since, on the one hand, it covers a set of information flows directly determined by the current management accounting system, on the other hand, it is rigidly fixed by internal regulations in the form of a number of internal regulations , and this is already part of the management system.

Figure 1.3 - Infrastructure of the budget process

In his work, A.D. and Filippov V.E. highlighted another important factor from their point of view, which determines the effectiveness of the implementation of the budgeting process. It is an accurate adherence to the hierarchy of goals, targets, activities and budgets, affecting several levels of management. The main element in this case is the hierarchy of goals. The objectives of the lower management level should be consistent with the objectives of the upper management level. Only in this way an effective development strategy can be built at the enterprise. Targets, which are quantitative measures of goals, should also be linked with each other by a clear hierarchical relationship. However, this does not mean that indicators at all levels of government should be the same.

With regard to activities, here the hierarchical relationship can be of two types. The first type of activities is carried out centrally at the upper level of management and affects a number of departments in which their activities are developed, but in line with what is being carried out "at the top". The second type is implemented only at the lower level and is associated with the upper level of management through budgets.

Budgeting and cost control: theory and practice Krasova Olga Sergeevna

1.2. Organization of budgeting. Budget cycle

An integral part of management accounting is budgeting, the main purpose of which is the formation of information for enterprise management in order to increase profits with the financial stability of the organization. Budgeting is one of the component parts planning, therefore it must be present in the organization's management system, and specifies the goals of planning.

Budgeting (in the narrow interpretation of this term) is a method of short-term projection of the future values ​​of financial statements, based on the fact that each of their items is responsible for its implementation.

"Methodological recommendations for the development of the financial policy of the enterprise", approved by the order of the Ministry of Economy of the Russian Federation of October 1, 1997 No. 118, budgeting defined as part of financial planning. This document, in particular, states that the most important element of ensuring sustainable production activity is the financial planning system, which consists of: a system of budget planning for the activities of structural divisions of the enterprise, a system of consolidated (integrated) budget planning of the enterprise's activities.

Budgeting Is the process of drawing up and implementing this document in the practical activities of the company.

The quality of budgeting is determined by the structure of budgets, the composition of budget items, the consistency of budgets with each other, as well as the activities of managers involved in the budgeting system.

The operational system of company management (budgetary management) by responsibility centers with the help of budgets allows you to achieve the goals set by the most efficient use of resources. An important point budgetary management is a motivation that uses a mechanism to account for deviations from the planned indicators of costs and benefits and delineation of responsibility for these deviations. In the economic literature, for ease of understanding of the material, very often the terms "budgeting" and "budget management" are used interchangeably.

In order for the budgeting process to begin to operate effectively, it is necessary to carry out a number of preparatory work. Organization of budgeting includes the following main points.

1. Design and approval of the financial structure of the organization... This is necessary in order to delegate authority in terms of drawing up specific (private) budgets by the responsible organizational units of the enterprise management system.

2. Development of the structure of the general budget of the organization... This stage includes work on the formation of classifiers of budgets, budget items, the imposition of types of budgets on the organizational links of the enterprise management structure.

3. Approval of budgetary policy... The budgetary policy itself is similar in form to the accounting policy and is formed with the aim of developing and consolidating the principles for the formation of indicators of budget items, methods of their assessment.

4. Development of budgeting regulations... This includes: determining the time period for budgeting, planning procedures, budget formats, an action program for each of the participants in the budgeting process.

The degree of functioning of the budgeting process depends on the amount of effort and costs put on it. In large companies with a complex organizational structure, this issue is dealt with by a specially created budget committee- a collegial body consisting of representatives of all budgetary centers. The peculiarities of the activities of budget committees depend on the characteristics of the organizations themselves, but the following issues are common to all: transformation of strategic goals into a series of operational budgets, organization of workshops, approval of functional budgets and their consolidation into a single master budget, consideration of reports on budget execution and further analysis deviations, resolution of conflicts arising in the process of functioning of the budget system.

Summarizing the above, it is possible to present in a complex the system of planning and budgeting at the enterprise in the form of a diagram (diagram 1.4). Full-fledged budget planning in an enterprise is impossible without taking into account the business cycle, industry cycle, enterprise development cycle and life cycle product. The analysis of various models of growth and stabilization of the enterprise showed that at each stage of the development of the company, its own financial policy must be formed and the data provided by management accounting must be formed, taking into account the fundamental model of development.

The main factors to consider when building an appropriate budgeting models, should be divided into the main intra-firm factors that influence the construction of the budgeting model, and the factors that matter when the owner influences the budgeting process.

Diagram 1.4

The first type of factors includes the following types of resources:

1) financial resources, both own and borrowed;

2) human resources, especially at the executive and top management levels;

3) business - resources, including relationships with buyers and suppliers, production process, market share, reputation, etc. 4

4) information resources.

Factors that are important in the influence of the owner on the budgeting process consist of the following elements:

1) the goals of the owner in business;

2) the degree of delegation by the owner of his powers to employees;

3) the owner's ability to combine personal goals with the goals of his enterprise;

4) entrepreneurial abilities of the owner of the company.

When an enterprise moves from one stage of development to another, the significance of these factors changes. In the early stages, it is the entrepreneurial talents of the owner that are fundamental to the development of the firm.

The budgeting model at this stage should be aimed at comparing the personal goals of the owner and the goals of the company. At the same time, the founder of the company must be prepared for possible own financial losses in the name of the interests of the company.

Table 1.1

Additional models used in budgeting will be:

1) dynamic model - the principle of construction is continuous measurement at regular intervals, with a reflection of the result, the effectiveness of the economic activity of the enterprise. In a market economy, efficiency is measured primarily through profitability equity capital, that is, the result of the activity received by the owner of the capital;

2) static budget- this is a budget in which specific amounts of income and expenses are planned for each budget item;

3) flexible budget- a budget, the indicators of which can be adjusted depending on the level of activity. This can be a variable budget, the data of which is fixed amounts plus variables from the volume of activity. This can be a staggered budget made up of a series of detailed financial budgets.

Flexible budgets are well illustrated by break-even charts, which clearly show the break-even point and the results of the enterprise;

4) budget in kind- a budget formed not in monetary terms, but in physical terms, such as units of finished products, materials, the number of employees or hours worked. The budget in kind is one of the components of the control system at the enterprise.

The choice of an additional budgeting model is also determined by the goals facing the enterprise. In practice, additional budgeting models are used as auxiliary ones for choosing the most appropriate version of the consolidated budget.

The budgeting system, like any other system, cannot function without observing certain conditions, in this case, these conditions are certain components (components), which together represent the budgeting infrastructure.

The first component of the budgeting infrastructure is analytical unit, which includes a certain methodological basis for the development, control, analysis of the implementation of the consolidated budget.

The second component is accounting unit budget process. To implement budgeting, an enterprise must have a management accounting system, that is, the availability of all quantitative information about the activities of an economic entity, which allows tracking the real financial condition, movement of inventory, financial flows and business transactions.

Any operating enterprise (firm) has its own organizational structure, which is determined by a set of individual services, divisions, which include employees engaged in a particular activity (responsibility centers). The interaction of all structural divisions is carried out on the basis of internal regulations and instructions that make up the internal document flow of the enterprise. The presence of an organizational structure and a management system between departments make up organizational unit budget process.

In larger companies, the process of budgeting and monitoring the execution of the consolidated budget without applying automated system accounting would be very difficult. When using software and hardware, the level of efficiency and quality of work increases. Therefore, in software and hardware unit infrastructure includes all software and hardware tools used in this enterprise and involved in the budget process.

Thus, the infrastructure of the budget process consists of four closely related components (Figure 1.5), which complement each other and are practically inseparable.

The budget of the enterprise, like the budget of the state, is always developed for a certain time interval, which is called budget period... An enterprise can simultaneously draw up several budgets that differ in the length of the budget period. The correct choice of the duration of the budget period is one of the important prerequisites for the effectiveness of the budget planning system as a whole.

Diagram 1.5

Budgeting is not only about the period to which the plan belongs. The development of the plan itself should begin even before the beginning of the budget period, and the control procedures should be completed after it. All these components form the budget cycle, which includes the following stages:

1) setting goals for the budget period;

2) collection of information for the development of the draft budget;

3) analysis and generalization of the collected information, the formation of the draft budget;

4) evaluation of the draft budget and its correction;

5) approval of the budget;

6) budget execution and possible adjustments to its indicators;

7) current and final analysis of deviations;

8) submission of a report on the implementation of the budget and analysis of the achievement of the goals of the organization for the reporting period;

All these stages are combined into three main phases: planning, implementation and completion. The tables below show the activities of all participants in the budget process for the three phases of the budget cycle.

Thus, the budget cycle itself lasts much longer than the budget period, since it begins before the beginning of the budget period and ends after its completion, when the implementation phase of the next cycle is already in progress.

1. The planning phase.

2. Execution phase.

3. Completion phase.