51. Budget loan A budget loan is a form of financing budget expenditures, which provides for the provision of funds to legal entities or another budget on a repayable and reimbursable basis (Article 76 of the RF BC). A budget loan can be provided

Fiscal Control Realistic budgets, prompt monthly actual results and regularly updated forecasts of expected financial year results are fundamental foundations of financial management and control.

Definition company budgetingcan 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 equivalents in non-cash form) 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 budgetingas 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 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 implementation 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 budgetingis an enterprise that is a complex economic system. Accordingly, and budgeting process, as modeling (when drawing up a consolidated budget) and reflection (when carrying out a plan-fact analysis of the execution of the consolidated budget) of the economic activity of an enterprise, is based on the application of a systematic approach.

Organizational tasksin the field of budgeting of 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 objectivesthe company's activities include:

Ensuring a high level of stability 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 tasksconsist of:

Effective regulation of the company's financial flows;

Ensuring optimal use of the company's financial flows;

Maintaining constant solvency of the company;

Increasing the company's net financial flow.

The implementation 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 activitiesthe 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 of the enterprise, 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, it is possible to ensure a more rational and economical use of own financial resources formed from internal sources, to reduce the dependence of the rate of development of an enterprise on attracted loans. This aspect of management becomes especially relevant for enterprises in the early stages of their life cycle, when access to external sources of financing is limited.

Budgeting of the enterprise is an important factor in financial support, accelerating the turnover of the enterprise's capital. 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 ensures that the risk of insolvency is reduced. Even for enterprises that successfully carry out economic activities and generate a sufficient amount of profit, insolvency may arise as a result of the imbalance of various types of financial flows over time. Synchronization of receipts and payments of funds, achieved in the process of budgeting the activities of the enterprise, allows you to establish the factor of the occurrence of its insolvency.

Activity budgeting allows an enterprise to receive additional profit generated directly by its financial assets. This is, first of all, about the effective use of temporarily free cash balances in the composition of current assets, as well as the accumulated investment resources in the implementation of financial investments. The high level of synchronization in terms of 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.

There are 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 product output;

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 influence 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, for example, 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 are 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 of 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 is the most important plan when drawing up the annual budget. This plan is also the most difficult of all, since the total revenue 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 make an estimate of total sales for each region. An alternative approach is to estimate consumer demand using statistical methods, the use of which allows taking 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 should budget for the areas of activity for which they are responsible. The budget preparation process must 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 executives to be involved in preparing their budgets and increases the likelihood that they will accept the budgets and strive to achieve planned goals.

There is no single way to quantify a specific budget 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 the event happened in the past, it will happen 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 follow senior management guidance in their budgeting, such as specific instructions on price changes for purchased materials and services. 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 manager. 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 reasoning for 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 out of balance 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 to the top 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 drawn up 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 budgets are aligned with one another, they are brought together into 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 must periodically evaluate actual results and review the company's future plans. 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 the 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 aligned to 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.

To implement an effective budgeting system, develop a detailed financial structure, create budget forms, define the procedure for their formation and methods for planning individual items. The article contains a guide that will allow you to complete the listed tasks and avoid mistakes.

Budgeting is ...

How complex and time-consuming the process of implementing the budgeting system will be depends on the tasks that are set for it. As a rule, these are the main management tasks closely related to the main strategic and tactical goals of the company, which include:

• identifying needs for financial resources;
• management of the company's income and expenses;
• formation of multivariate plans for the development of the company;
• optimization of the use of the organization's resources, cost reduction and others.

When setting tasks for the future system, it is important to remember that their excessive detailing will complicate the implementation process. To avoid this, you should determine in advance what set of budget forms will be optimal for the company, how often it will be necessary to draw up and revise plans, who will be responsible for this.

What to consider when implementing a budgeting system

Getting started planning, it is necessary to highlight the main patterns of the organization's work, understand to what extent the 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, the coordination of concepts, actions and ideology, the more effective the planning process will be.

Enterprise budgeting is implemented through the budget system and is closely related to the management process. Therefore, the quality and timeliness of management decisions depends on how the budget management system works, how much management and employees support it. Training employees in new budgeting rules.

68 percent of colleagues are dissatisfied with their budgeting system and believe that it needs to be improved. The editors found out what shortcomings in the budgets bother the heads of financial services. For each problem, there are solutions that have already been tested by your colleagues.

Budgeting step by step

Budget management Is a system of company management by centers of financial responsibility through budgets, which allows to achieve the set goals by implementing budgetary powers and the most efficient use of resources.

Budgetary powers - rights and obligations of subjects of budgetary management and other participants in the process of regulating budgetary relations, organizing and implementing the planning and control process.

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

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

The basic principles of budgetary management should be reflected in a separate document - and further keep it up to date. The position must necessarily be revised in the event of a change in the company's strategy, structure and principles of interaction between departments.

If we are already talking about budget management, then we must understand that it is impossible without streamlining management processes, without creating a planning and control system, 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 determine the concepts and its elements - subjects. We propose the following formulations.

Subjects of budgetary management- these are structural units, collegial bodies and company employees involved in the budget management process in accordance with their competence and area of \u200b\u200bresponsibility.

Financial structure - a set of financial responsibility centers in the context of financial accounting centers.

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

Financial Accounting Center (CFU) - accounting unit (object, project) for which the accounting system accumulates consolidated information on income and expenses.

Financial Responsibility Center (CFR) - a structural unit that, in the course of its functional activities, forms, executes and controls budgets or their individual items. Each CFD is headed by a leader who is responsible for the activities of the unit within the framework of budget management.

Then, guided by the definitions, one should figure out whether it is possible to implement the financial structure on the basis of the organizational one. We note right away that at the first stage, when the budget management system is not fully implemented at the enterprise, it is possible to use the mechanism "as is" and combine the 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 enterprise has already launched the budget management process 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 one (see what the organizational structure of enterprise management is).

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 trade and production enterprise is shown in Diagram 1. The organizational hierarchy is obvious, but the nature of subordination is completely different: the subject of budgeting of the CFD at the zero level 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 the budgeting of the Central Federal District of the first level are enlarged entities - directorates, departments, services, shopping centers, the current management of which is under the jurisdiction of the relevant divisions. The following may act as the CFI of a trade and production enterprise:

• shopping centers, workshops, divisions (with consolidation by formats, regions, products);
• investment projects (each project separately);
• management company (all CFDs of the administrative center are consolidated).

Scheme 1. An example of the structure of the budgetary management of a trade and production enterprise

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

Similar matrices can be drawn up for the rest of the stages of budget management, while it is important to involve the leaders of the Central Federal District in the process, to balance powers and responsibilities. If this is not done at the level of ideology, then the subject of budgetary management will be very willing to use the rights, and responsibility for the budget deficit or cash gap will be shifted to the financial department.

Types of budgets

Regardless of the level of development of the company and its structure, in the planning process, as a rule, several types of budgets:

• operating budgets (for Central Federal District, Central Federal District);
• cash flow budget (BDM);
• balance sheet budget (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 - there should be no uncovered processes;
• the availability of a budget is determined by the realities of the business. For example, if a company does not receive income from financial activities, then it makes no sense to draw up a budget.

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

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

If you have to look for the reasons for deviations of the actual budget from the planned one,

Table 2. Types of functional budgets of the company by main activity

All budgets should be allocated in accordance with the financial structure. For example, the production budget for an enterprise as a whole will consist of the budgets of individual production departments (or factories), and all operating budgets will subsequently form the general budget of the company for its core activities.

For companies that want to tightly control costs and speed up the budgeting process - .

Regardless of the type, the budget consists of separate items. A reference book of articles must be formed on the basis of an audit of all business operations of the company. Cm.

In this case, the following important points should be taken into account:

• the grouping of business transactions on the basis of their belonging to the Central Federal District forms the operating budget of this Central Federal District;
• any expense or income transaction must necessarily have an item in the budget of income and expenses, according to which it can be reflected;
• according to the significance of transactions and the share in expenses or income, it is possible to establish one item for one transaction (but, as a rule, one item corresponds to a group of transactions);
• budget items should reflect the real needs of the business, so you should not add an article to the reference book for the future;
• the level of detail of the items depends on the amounts of the reflected transactions. For example, if under the item "Other expenses" the total amount exceeds other detailed budget items, then separate items should be distinguished from other expenses that give it a lot of 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 - the primary item of the same type of business transaction;
• level 1 - Consolidation of zero-level items;
• level 2 - consolidation of first level items.

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 goods and materials, marriage, etc.), and adding items reflecting the movement of money (advances, purchase of fixed assets and intangible assets, capital repairs, receipt of loans, other inflow, etc.).

A balance sheet budget can be constructed from the balance sheet by expanding it to the necessary level of detail.

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

Phases of the budget cycle

The budget cycle is a period of time during which operations such as setting key indicators for the year, drawing up a company's financial plan for each division, monitoring its implementation, operational analysis, correcting and revising individual items are performed.

Usually the cycle lasts continuously. The duration depends on the specifics of the economic detail of the enterprise and on how technically equipped the financial services of the company are.

Main phases:

1. Planning. At this stage, the strategic goals of the company for the planned period are established, an analysis of the external economic environment is carried out, the business directions of the enterprise's activities and standards within the organization are determined, information is collected and analyzed. The prepared budget is estimated and corrected if necessary. Then it is approved. At this stage, forecasts are determined for factors that can directly affect the future development of the enterprise.
2. Implementation. At this stage, the budget is executed, current and final deviations are analyzed.
3. Completion. In this phase, a report on annual budget execution is prepared, recommendations for adjustments for the future period are developed.

Since the process is continuous, a few months before the end of the final phase, it is already necessary to plan the budget for the next year.

Stages of organizing budgeting in the enterprise

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

From the point of view of practice, the coordination of goals is the most important stage of planning, heads of functional areas should be involved 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 the heads of functional departments develop coordinated methods for solving existing problems, assess tasks, analyze constraints, opportunities and risks. The relationship between strategic goals and performance indicators of individual CFDs is shown in Scheme 2.

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

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

• ensure the formation of the budget for the year, quarter, month;
• control the execution of the company's budget, identify the reasons for deviations of the actual values \u200b\u200bfrom the planned ones, develop measures to implement the budget;
• involve officials and responsible employees in the budget management process;
• identify illegal 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 sequential stages:

1. Analysis of the market and financial position of the organization.
2. Identification of key or limiting factors.
3. Drawing up predictive functional budgets.
4. Consolidation and balancing of the operating budget. Cm. .
5. Formation.
6. Determination of the need for financial resources.
7. Formation and approval of the tax budget. See how.
8. Drawing up a consolidated company budget.
9. Familiarization of all interested participants with the budget.
10. Organization of the budget execution control system.
11. Discussion of the procedure for adjusting budgets.
12. Assessment of the company's activities from a budget perspective.

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

Table 3.Example of detailing planning stages

Consideration and approval of the budget within the company and work with business owners allows for an iterative process if the indicators presented for protection do not satisfy them. Iterativeness presupposes the elaboration of indicators “from top to bottom” and “from bottom to top” and in the future will allow managing the company's resources with maximum efficiency.

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

It is advisable to complete all work on the preparation and approval of the company's budgets for the year before the start of the planning period. In case the process is delayed for various reasons (the duration of agreeing on strategic goals, unpreparedness of managers, lack of a process coordinator, etc.), a budget rule can be envisaged: 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 not disrupt the production process.

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

In the course of work (budget execution), when the planning horizon is shrinking and, under the influence of various factors, the enterprise is faced with a deviation of the actual indicators from the planned ones, a situation is possible when the deviation from the set budget values \u200b\u200bis economically justified and it is necessary to make changes to the budget. In this case, we can talk about using flexible budgets. A flexible budget is a budget that 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 approved annual budget of the company, while the boundaries of flexibility must be developed and formalized before the budget process begins. For example, one of the flexible budgeting rules allows you to adjust budget values \u200b\u200bwithin a static annual budget by redistributing limits by line item or by CFD (CFD).

Let's summarize. Implementation of a budgeting system is a sequential passage of the following stages:

Stage 1. Development of the organizational structure of budgeting. At this stage, the structure of the company is considered in the context of departments, departments, directions and ways of interaction between departments are studied. It is necessary to understand by what rules the reporting in the company is drawn up, to study its composition and forms in order to maintain the comparability of the reporting data with the planned ones. Based on the existing departments and based on the types of financial transactions, centers of financial responsibility and those responsible for them are established.

Stage 2. Creation of the structure of budgets. Formation of the composition of plans based on the established centers of financial responsibility.

Stage 3. Description of budgeting rules. Not all company employees are familiar with the nuances of reporting in the company. To ensure the comparability of data between the plan and the fact, it is necessary to easily and easily describe the rules by which the company recognizes income and expenses for all participants in the process.

Stage 4. Drawing up planning regulations. The regulations prescribe the timing, budgeting rules, the process of collecting, agreeing, and approving planned data.

Stage 5. Drawing up a set of operating and financial budgets.

The operational plans include plans for the centers of responsibility (production plan, sales, labor costs, etc.). Data on them is collected in the context of departments, and the heads of departments are responsible for the implementation of these plans.

Further, when consolidating these operational plans, financial budgets are drawn up, the list of which is similar to the composition of financial statements - this is a budget (forecast) balance sheet, a budget profit and loss statement,. The responsibility for their implementation already lies with the head of the entire company.

Budgeting as a cost management tool

So that planning is not a simple formality, and the execution of budgets as close as possible to the plan, it is important to correctly determine the possible income and expenditure rates.

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

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

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

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

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

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 regulations may be as follows:

• material costs per unit of production, per ruble of revenue, profit;
• stock standards at the end of the period;
• operating and utility costs per 1 sq. m of the used area;
• the cost of equipping a workplace for 1 employee when hiring;
• the cost of office supplies for 1 employee;
• insurance of premises for 1 sq. m of the used area;
• the cost of communication services for 1 employee (plus dependence on the position held);
• travel expenses (daily allowance, accommodation, travel tickets) for 1 employee (plus dependence on the position held), etc.

Normalization can also be used in situational modeling. The standard values \u200b\u200bof the indicators should be revised at regular intervals, for example, once a year before starting the budget process.

Budgeting and control, adjustment, revision

Each company has its own rules for assessing budget execution; the range of deviations by item may also be different. In this regard, very often questions arise: is it worth adjusting the budget in the process of its execution and what principles should be followed in this case. Cm.

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

• the level of the budget to be adjusted;
• the level of deviations at which the adjustment is 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 on a monthly basis, then the manager's responsibility should already be financial.

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

As a rule, the deviation of the actual values \u200b\u200bfrom the planned by 3-5 percent is considered acceptable. But if during the modeling process other threshold values \u200b\u200bare determined, 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).

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

Many other dependencies have also been deduced, which must be paid attention to both when planning and when analyzing the budget. In particular, the following:

• with a growing business (or market), income should be the focus of close attention;
• with a stable business (or market), you need to control profits;
• when falling, it is especially important to control the constant part of costs.

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The budget can be adjusted 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, while not affecting the possible savings on protected items. Protected items are expenses that are necessary to ensure a normal production process, that is, costs that an enterprise will unconditionally bear regardless of the level of its business activity. As a rule, such expenses include payroll, taxes, 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 understood. There are two main reasons for deviations of actual values \u200b\u200bfrom planned ones: the issue was not worked out at the planning stage, or control over the process at the execution stage is weakened. It is necessary to identify what exactly is at stake in the case of a specific deviation, and give feedback to the owner of the process. This helps to increase the discipline and responsibility of leaders. Cm.

Here are some specific rules for budget control and adjustments to budget values.

1. Payment to the lender (supplier for services rendered or goods received) for the admitted cost overruns in terms of variable budget items is made after changing the limit of a specific unit (based on an order) within the standard for the company or after temporarily canceling control over the ratio of costs and turnover (if the standard for the Central Federal District, it is impractical to change and the standard for the company is not exceeded).
2. The change in the limit for the payroll item is made by the HR Directorate within the approved annual budget by redistributing the amounts between the central financial institutions and periods, the payroll budget overruns are not covered by other items. A reduction in the budget under the payroll item is made in the event of structural changes or changes in business processes (for example, reduction of maintenance personnel and attraction of cleaning companies).
3. It is allowed to transfer the budget in the current period between the FSC within the same budget items.
4. It is prohibited to carry out expenses by increasing income without adjusting the limit for the corresponding budget expense item (for example, travel expenses due to non-operating income). In this case, it is necessary to adjust the budget for the expense item according to general rules.

To increase maneuverability in managing the budget and use additional opportunities to cover its deficit, it is worthwhile to provide a separate item when planning, a certain reserve fund. It can be formed as a percentage of turnover or another base, or simply in absolute terms, indexing the fact of the previous year. Such a fund, by decision of the director or the 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 costs at the expense of the guilty official.

Budgeting automation

So that the built-up planning system does not remain on paper, in regulations, but is 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 company determines this independently, depending on the level of business development, its diversification, stage of the life cycle. At some stage, the main planning and control tool will be MS Excel, its capabilities are great, its use is convenient, but with the growth of the company, the level of automation should also grow, and the high level of IT specialists gives almost unlimited possibilities of automation. For example, in our company, the operational control of budget execution is automated, a full cycle of planning and control of payments is being developed, accounting for contracts in the system. Budgeting in Excel. System automation tips

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

A.K. Nesterov Budgeting // Nesterov Encyclopedia

Budgeting, as a direction of current planning, was formed in the middle of the XX century. The budgeting system at the enterprise is able to ensure the adoption of rational and expedient decisions related to financial transactions.

Enterprise budgeting

Budgeting Is a management concept based on setting flexible goals that can be adjusted in order to optimize the company's activities.

Budgeting is a management tool for the distribution and control of the use of resources, characterized in monetary and physical terms, to achieve strategic business goals.

Budgeting includes planning, preparation and control over the execution of budgets, covering all processes within the enterprise. Budgets are drawn up for certain periods and are the expression of financial plans, taking into account the current and future goals and objectives of the enterprise. The overall budget of the enterprise is made up of numerous budgets of departments and subdivisions.

Purpose of budgeting - to form a methodology for planning, managing and monitoring the effectiveness of financial and economic activities based on forecasting future development and budgeting.

1. Matching principle
2. Priority principle
3. Causality principle
4. The principle of responsibility
5. The persistence principle

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 the seasonal fluctuations of the market are leveled. Indicatively, that is, without approval as a system of targets and mandatory standards, 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 for the current year.

The budget cycle includes the time 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. At the same time, special attention is paid to assessing the implementation of profit and profitability plans. 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 of a commercial organization is determined based on an 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.

In medium and large enterprises, the decision to approve 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);
• - the general meeting of shareholders (the board of directors submits the draft consolidated budget for approval to the general meeting of 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 appropriate quantitative information about the activities of the enterprise, sufficient to imagine its real financial condition, the movement of material and financial flows, basic business operations. Consequently, the enterprise should have a management accounting system that records the facts of economic activity necessary to ensure 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 budget 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.

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 assign the budget plan and are responsible for its implementation.

The budgeting management system is a regulation of interaction between the services of the management apparatus and structural divisions, which fixes in the relevant internal regulations and instructions the responsibilities of each division 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 units should receive the accounting information necessary to provide it.

On the other hand, structural subdivisions should receive from the management staff the budget assignment and the 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's 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 the totality 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 a hierarchy of goals, targets, activities and budgets that affect multiple 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 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.