Noi Planning and budgeting. Fundamentals of budget planning of financial activities

Introduction

The purpose of writing the work is to study financial planning and budgeting in an organization.

The objectives of the course work are:

goals and methods of financial planning;

types of budget of organizations;

financial automation planning and budgeting.

The reforms carried out in the country have led to an increase in the volume and flow of socio-economic relations and an increased role of distribution relations. The non-state sector of the economy, the modern banking system, the services and capital markets have emerged and continue to develop. Organizations have switched to the widespread use of market methods to regulate their business activities. The main goal of entrepreneurial activity of organizations has become to obtain profit, which serves as the most important source and prerequisite for capital growth, income growth of the enterprise and its owners. This goal can be achieved only with optimal organization of finances, which will not only strengthen the financial position of the organization and their competitiveness, but also ensure financial stabilization in the country.

Financial planning is an important element of the corporate planning process. Every manager, regardless of his functional interests, must be familiar with the mechanics and meaning of the implementation and control of financial plans, at least as far as his activities are concerned.

The importance of a financial plan in enterprises is that it:

contains guidelines in accordance with which the enterprise will act;

makes it possible to determine the viability of the project in a competitive environment;

serves important tool receiving financial support from external investors.

Financial plans should be drawn up with the most accurate forecast of determining factors. In this case, forecasting can be based on historical information using the apparatus of mathematical statistics ( mathematical expectation, trend lines, etc.), results of forecasting models (statistical models that take into account the relationship of factors with each other and external factors), expert assessments and etc.

1. Purpose, objectives and methods of financial planning

Financial planning is the management of the processes of creation, distribution, redistribution and use of financial resources in an enterprise, implemented in detailed financial plans. Financial planning is integral part general process planning and, consequently, the management process carried out by the management of the enterprise.

The importance of financial planning for a business entity is that it:

1. embodies the developed strategic goals in the form of specific financial indicators;
2. provides financial resources for the economic development proportions laid down in the production plan;
3. provides opportunities to determine the viability of an enterprise project in a competitive environment;
4. serves as a tool for obtaining financial support from external investors.

Planning is associated, on the one hand, with the prevention of erroneous actions in the field of finance, and on the other, with reducing the number of unused opportunities.

Business practice in a market economy has developed certain approaches to planning the development of an individual enterprise in the interests of its owners and taking into account the real situation on the market.

The main tasks of financial planning in an organization include:

1. provision of necessary financial resources for production, investment and financial activities;
2. determining ways to effectively invest capital, assessing the degree of its rational use;
3. identification of intra-economic reserves for increasing profits through the economical use of funds;
4. establishing rational financial relations with the budget, banks and counterparties;
5. respecting the interests of shareholders and other investors;
6. control over the financial condition, solvency and creditworthiness of the enterprise.

The financial plan is designed to provide financial resources to the entrepreneurial plan of an economic entity and has a great influence on the economy of the enterprise. This is due to a number of circumstances. Firstly, in financial plans, the planned costs of carrying out activities are compared with real possibilities, and as a result of the adjustment, material and financial balance is achieved.

Secondly, the articles of the financial plan are related to all economic indicators of the organization’s work and are linked to the main sections of the entrepreneurial plan: production of products and services, scientific and technological development, improvement of production and management, increasing production efficiency, capital construction, logistics, labor and personnel, profit and profitability, economic incentives, etc. Thus, financial planning influences all aspects of the activity of an economic entity through the selection of financing objects, the direction of financial resources and promotes the rational use of labor, material and monetary resources.

In the practice of financial planning, the following methods are used: economic analysis, regulatory, balance sheet calculations, cash flows, multivariate method, economic and mathematical modeling.

The method of economic analysis allows us to determine the main patterns, trends in the movement of natural and cost indicators, and the internal reserves of the enterprise.

The essence of the normative method is that, based on advance established standards and technical and economic standards, the need of an economic entity for financial resources and their sources is calculated. Such standards include rates of taxes and fees, depreciation rates, etc. There are also standards for an economic entity, developed directly at the enterprise and used by it to regulate production and economic activities, control the use of financial resources, and other goals for the efficient investment of capital. Modern costing methods, such as standard costing and marginal costing, are based on the use of intra-business norms.

The use of the balance sheet calculation method to determine the future need for financial resources is based on the forecast of the receipt of funds and costs for the main balance sheet items at a certain date in the future. Great care must be taken in choosing the date: it must correspond to the period of normal operation of the enterprise.

The cash flow method is universal in drawing up financial plans and serves as a tool for predicting the size and timing of receipt of the necessary financial resources. The theory of cash flow forecasting is based on expected receipts of funds on a certain date and budgeting for all costs and expenses. This method will provide more voluminous information than the balance sheet method.

The method of multivariate calculations consists in developing alternative options planned calculations in order to select the optimal one, and different selection criteria can be specified. For example, one option may include a continuing decline in production, inflation and weakness of the national currency, while another may involve rising interest rates and, as a consequence, a slowdown in global economic growth and a decline in product prices.

Methods of economic and mathematical modeling make it possible to quantitatively express the close relationship between financial indicators and the main factors that determine them.

The financial planning process includes several stages.

At the first stage, financial indicators for the previous period are analyzed. To do this, use the main financial documents of enterprises: balance sheet, profit and loss statements, cash flow statement.

They have important for financial planning, since they contain data for the analysis and calculation of financial indicators of the enterprise, and also serve as the basis for drawing up a forecast of these documents. Complex analytical work at this stage is somewhat facilitated by the fact that the form of financial statements and the planned financial tables are the same in content.

The balance sheet of the organization is part of the financial planning documents, and the reporting balance sheet serves as the starting point at the first stage of planning. Western companies usually use an internal balance sheet for analysis, which includes the most reliable information for internal use. The external balance sheet, usually compiled for publication, for a number of reasons (taxation, creation of reserve capital, etc.), shows reduced profit margins.

At the second stage, the main forecast documents are drawn up: forecasts of the balance sheet, profit and loss statement, cash flow (cash flow), which relate to long-term financial plans and are included in the structure of the scientifically based business plan of the enterprise. At the third stage, the indicators of forecast financial documents are clarified and specified through the preparation of current financial plans. At the fourth stage, operational financial planning is carried out.

The financial planning process ends with the practical implementation of plans and monitoring their implementation.

Types and forms of organizational budgets

Budgets are developed both for the organization as a whole (consolidated budget) and for its structural divisions or individual functions (private budgets). The master budget is a work plan for the organization as a whole, coordinated across all departments or functions. As a result of its compilation, the following are created:

* profit and loss plan;

* cash flow forecast;

* forecast balance sheet (report on financial situation).

The main budget of an organization consists of two main budgets - operational and financial. In the operating budget, the economic activities of the organization are reflected through a system of special technical economic indicators, characterizing individual aspects and stages of production and economic activity. The ultimate purpose of an operating budget is to create a consolidated profit and loss plan. When forming it, budgets are used:

* production;

* procurement and use of inventories;

* labor costs;

* general production expenses;

* administrative and management expenses;

* commercial expenses.

Developing an operating budget usually begins with drawing up a sales plan. This is due to the fact that all other economic indicators of the organization largely depend on the size and cost of sales: production volume, cost, profit, etc. The sales budget is formed “from top to bottom” on the basis of strategic planning (for example, based on market capacity, share market) and bottom-up, taking into account individual customers or products. In many cases, sales volume is limited by available production capacity. The main source of information when drawing up a sales budget is data from the marketing department. After establishing the planned sales volume, a production budget is developed, on the basis of which budgets are drawn up for the purchase and use of materials, labor and overhead costs. Next, budgets for commercial and administrative expenses are prepared. The operating budget (plan) of profits and losses in the most general form includes the following indicators:

Revenue from product sales.

Cost of products sold.

Gross profit(item 1 - item 2).

Business expenses.

Management expenses.

Profit (loss) from sales (clause 2 - clause 4 - clause 5).

An important component of the main (consolidated) budget of an organization is the financial budget (plan). In its most general form, it represents the balance of income and expenses of an organization. In it, quantitative estimates of income and expenses given in the operating budget are transformed into monetary ones. Its main goal is to reflect the expected sources of financial resources and directions for their use. Using a financial budget (plan), you can obtain information about indicators such as:

* sales volume and total profit;

* cost of sales;

* percentage of income and expenses;

* total investment volume;

* use of own and borrowed funds;

* payback period of investments, etc.

The financial budget includes investment and cash budgets, as well as a forecast balance sheet (statement of financial position). The investment (capital expenditure) budget determines the sources of investment resources and the directions of proposed capital investments. A cash budget (cash flow forecast) is a plan for the receipt of funds and (payments) for a future period. With its help, the final balances in cash accounts necessary for drawing up a forecast balance sheet are predicted, and periods of excess or shortage of financial resources are also identified. The last step in the process of preparing the main (consolidated) budget is the development of a forecast balance sheet (statement of financial position). It reflects the structure of the organization's assets and liabilities and corresponds to reporting form No. 1. Calculation of the expected balance sheet as of the end of the planning period allows you to assess those changes that will happen to the organization’s property and its source as a result of business operations of the planned period. Drawing up a detailed consolidated budget is a serious help for the owners of the organization in ensuring control over the effectiveness of the use of funds invested in it. The master budget is also important for immediate managers organizations. It allows you to clearly define the goals and objectives facing them for the planned period and monitor the progress of the production program, the process of generating income and expenses, the status of settlements and payments. When forming budgets for organizational units, a prerequisite is the use of the “zero balance” method. Budgets should not be drawn up on the basis of past costs, but on the basis of planned activities. Budgets must be formed on the basis of one of the alternative plan options. The following options are possible: pessimistic, probabilistic and optimistic. The pessimistic option should pursue a minimum goal and require a maximum reduction in available resources. The probabilistic option should focus on achieving maximum goals with moderate use of resources. The optimistic option should provide for achieving the maximum goal while using all resources efficiently.

The generated budgets must meet the following requirements.

Budgets should be challenging but achievable. Only balance motivates adherence to the budget.

Only a valid budget has the right to exist. Shadow or emergency budgets are not acceptable.

The budget is a general plan in natural and monetary units.

The person responsible for executing the budget must participate in its development in order to take full responsibility for the preparation of the budget.

The budget is a kind of instruction for recording accounts. It requires equality between planned and actual data.

The budget remains unchanged during the budget period.

The drawn up budget must be agreed upon by all services of the organization involved in its formation, after which it is submitted for consideration to the management of the organization. After approval by the management of the organization, the budget becomes valid. It must be adopted before the start of the business year so that the required activities can be: completed in a timely manner. A budget is valid for an entire time period. Changing data, parameters or goals do not lead to changes in the budget. Information about deviations obtained as a result of comparing planned and actual indicators is taken into account for the future by the beginning of the next budget. Based on the budget approved by the management of the organization, monthly plans for income and expenses are built, which are mandatory for execution by all services. Through these plans, costs are managed in the organization and the achievement of the required level of economic indicators (sales volume, net profit, return on assets, profit margin, etc.) is ensured, without which flexible development of the enterprise is impossible. The effectiveness and validity of adopted budgets is revealed when planned indicators are compared with actual ones. For this purpose, the enterprise can draw up both static and flexible budgets. The static budget is calculated for a specific level of business activity of the organization. In it, income and expenses are planned based on only one level of implementation. When comparing static budget data with actual achieved results, the actual volume of sales is not taken into account, i.e. a comparative analysis of the results is carried out.

All indicators depending on the volume of product sales have negative values. The static budget reflects the very fact of the achieved result. With its help, only absolute values ​​of indicators are compared and analyzed, both in monetary and percentage terms.

The static budget does not provide the possibility of a more detailed analysis. For these purposes, a flexible budget is used. The flexible budget provides for several alternative options for the volume of sales. It takes into account changes in costs and income depending on changes in sales levels and represents a dynamic basis for comparing achieved results with planned indicators. A flexible budget includes income and expenses adjusted to actual sales. If in a static budget indicators are planned, then in a flexible budget they are calculated. When using a flexible budget, factor analysis of the results is used. A comparison of static and flexible budgets shows that a flexible budget provides more objective data for analyzing enterprise performance. So, for example, the underfulfillment of the profit plan for the statistical budget is 300 thousand rubles, and for the flexible budget - 60 thousand rubles. This is due to the fact that the static budget does not take into account the influence of the actual volume of product sales, i.e. he is divorced from reality.

In a flexible budget for production costs, the norm per unit of production is first determined, and then, based on these norms, the planned volume of production costs is determined depending on the level of actual sales. As can be seen from the above data, the main budget, drawn up for a sales volume of 10,000 units, planned to be 3,800 thousand rubles. production costs. This means that the planned production costs per unit of production are 380 rubles. (3,800,000: 10,000).

Multiplying them by the actual sales volume achieved, we get 3,040 thousand rubles. (8000 x 380) production costs. Such adjustments in the flexible budget are carried out for all items of production costs. Sales revenue is also adjusted in a similar manner. So, the main budget, designed for 10,000 thousand units. products, the volume of sales revenue was determined in the amount of 5,000 thousand rubles. This means that the estimated selling price of one product should be 500 rubles. (5,000,000: 10,000).

In our example, 8000 units were actually sold. products. Consequently, sales revenue under a flexible budget should be 4,000 thousand rubles. (8000 x 500). Thus, a budgeting system based on a controlled forecast has a number of advantages and in modern conditions is one of the most advanced management methods. It is applicable in many areas of management. So:

* in financial management, with its help, you can form in advance a fairly clear idea of ​​the organization’s business structure, regulate the amount of expenses within the limits corresponding to the overall cash inflow, determine when and for what amount financing should be provided;

* in the field of business management, this method forces managers to systematically engage in marketing to develop more accurate forecasts and determine the most appropriate and effective commercial activities within the limits provided by existing resource capabilities for their implementation;

* in the field of organization general management this method clearly defines the meaning and place of each function (commercial, production, financial, administrative, etc.) carried out in the organization, allows for proper coordination of the activities of these services, focusing them on joint activities to achieve the indicators approved in the budget;

* in the field of cost management, this method promotes a more economical use of resources and ensures the search for ways to reduce costs.

Automation of financial planning and budgeting

To set up budgeting, it is necessary not only to competently solve methodological problems and thoughtfully comprehend the necessary financial planning tools, but also to develop appropriate organizational procedures that regulate all issues of relationships between individual structural units, central financial districts, cost centers or central financial institutions with the management of an enterprise or company. Very often, the possibility of adopting the budget required by the head of a structural unit or adjusting it in the appropriate direction is ensured by its availability to body General Director To reduce subjectivity in managing the finances of an enterprise, we need a clear order, budget regulations. It is the schedules and procedures for drawing up, agreeing, consolidating and approving budgets in the company, the schedules and procedures for drawing up reports on the execution of budgets, their analysis and adjustments, as well as the corresponding document flow schedules that turn budgeting and financial planning from a game into digits into management technology, into a financial control tool.

It is important to skillfully calculate various future scenarios financial condition enterprise or firm, individual business. But it is much more important to create a reliable and reliable system for assessing the execution of different budgets at different levels. It is impossible to quickly collect, process and consolidate factual data necessary for budget control without automation of management accounting.

Currently in Russia there are two types of computer programs that, in principle, can be used to set up budgeting:

) various kinds of programs that involve drawing up budgets according to international standards without seriously adapting them to our conditions (for example, Success+ , SAP/R3, Project expert , Altinvest , Red Director);

) various versions of accounting programs that allow you to organize budgeting automation based on established accounting reporting forms (for example, 1C. Company , Galaxy ).

Software requirements.

To successfully set up budgeting, a computer program must solve two interrelated problems:

) automate financial planning and forecasting, provide the opportunity to conduct a so-called scenario analysis of the future financial state of an enterprise or its individual types of businesses, provide answers to questions like what if...? , i.e., what will happen to this or that financial indicator if external or internal business conditions change (inflation rates, external financing conditions, etc.);

) collect, process and consolidate factual (reporting) information.

As a rule, accounting programs are used for this. But, firstly, the formats of data displayed in accounting programs often cannot be used for the needs of financial analysis, and, secondly, the results of data processing in accounting programs may have distortions (of a subjective and objective nature) that make this information also unsuitable for making management decisions in the financial sector. And most importantly, information from accounting programs and financial statements is most often not tied to the financial structure of the company.

To set up budgeting, an important condition is the separation of management accounting from accounting.

The most promising approach is to link both accounting and budgeting programs to a single database of primary financial documentation (payment orders, invoices, etc.). In this case, each primary document (for example, a payment order) upon its birth receives its own codes, with which it is included in accounting and management reporting (different for each program). According to the assigned codes, the primary document with the corresponding financial reporting information is received, collected and consolidated separately for the needs of accounting and management accounting. A payment order from one central financial district, for example, goes into the reporting of this center, another into the reporting of the corresponding center, and together into the unified accounting system of the enterprise.

All these requirements must be kept in mind both when choosing software and when implementing it.

Problems of budgeting automation.

Choosing a computer program is usually the final stage when setting up budgeting, but often many managers start with it. Automation of budgeting is useless if there is no full-fledged budgeting (as a methodology and management technology) at the enterprise. Therefore, before thinking about which computer program to give preference to, it is worth understanding the organization of in-house financial planning.

The essence of this problem is actually the following. In order for a computer program to work as part of management technology, a combination of two aspects of the problem is necessary:

) the availability of management technology itself (i.e., a detailed system of intra-company financial planning and budgeting, including a thorough and verified analysis of the financial structure, methodological support for budgeting technology, detailed regulations and organizational procedures, distribution of functions and responsibilities, document flow schedules enshrined in relevant organizational and administrative documents: regulations, orders, job descriptions);

) the presence of a computer program that allows you not to count anything at all, even if this something is outwardly similar to the forms of basic budgets (like those offered under the guise of budgeting in systems Galaxy or 1C , which are essentially rehashes on the topic of accounting reporting forms established in Russia for the needs of either budgeting or basic financial analysis), but are calculated precisely in those formats that are necessary for the management of companies and firms to make management decisions. For effective budgeting, to ensure optimal balance cost-benefit it is necessary to start not with the purchase of expensive software, but with the creation of your own, specialized, rather than universal, computer program, using the capabilities of Excel (to automate financial forecasting) and Access (to create databases of primary documentation, collect and process data management reporting). This approach will not only save a lot of money and time (the cost of such developments is hundreds of times lower than SAP/KZ and is comparable to the cost of the basic Project Expert kit), but also, most importantly, make automation truly effective, since over time it will be possible to quickly and it is easy to make appropriate changes to it. Or implement your software product on your own, which will already exactly correspond to the structure and business of the enterprise.

Requirements for computer programs for budgeting.

Programs must:

* adapt to the specifics of the organization, rebuild over time and with changes in goals and strategies;

* adapt to the financial structure of the company, as well as to its possible changes;

* have flexible regulations that allow for a system of rolling budgeting (continuous adjustment of budgets);

* have a familiar interface, focus on mass rather than unique software solutions and platforms.

financial planning budgeting automation

Conclusion

Regional financial crises, which are increasingly shocking lately world economy, also have their positive sides. For example, at the level of national economies, they clearly demonstrate the importance of budget balance, the danger (riskiness) of the emergence large quantity"short debts", etc.

A separate enterprise in this sense is a “state in miniature”, with the only difference that a decrease in size entails an increase in risks. The Russian financial crisis confirmed this very clearly.

The main purpose of enterprise financial management and financial planning is to:

ensure a rational balance of assets (funds) and liabilities (sources of financing) of the enterprise. In other words, to ensure a sustainable and economically justified match of funding sources to assets;

balance receipts and payments of payment turnover, i.e. ensure the sufficiency of means of payment to fulfill all obligations of the enterprise, both in terms of timing and in value.

The purpose of financial management of an enterprise is ultimately to ensure and maintain its financial stability in the long term.

The financial stability of an enterprise in a broad sense is understood as its ability to function, receiving a profit sufficient for its own reproduction and timely fulfilling all payment obligations. In this sense, a financially stable enterprise is one whose activities ensure:

return on assets is not lower than the interest rate on bank loans;

profitability equity not lower than return on assets;

balance of receipts and payments (incoming and outgoing financial flows) or positive net cash flow in the medium term;

a sufficient amount of net profit and depreciation (including in terms of social security and development labor resources) to ensure the reproduction of the productive potential of the enterprise.

Financial stability is an integral, generalizing indicator reflecting the state and results of the enterprise.

List of sources used

1. Tax Code of the Russian Federation. Part two: Law of the Russian Federation dated August 5, 2000 No. 117-FZ

Beregovykh T.V. Financial planning and budgeting in an enterprise: textbook. allowance / T.V. Beregovykh. - Khabarovsk: Pacific Publishing House. state Univ., 2008.-155 p.

Blank I.A. Financial strategy of an enterprise: textbook. for universities / I.A. Form. - Kyiv: Elga, Nika-Center, 2002.-736 p.

Bolshakov S.V. Enterprise finance: theory and practice: textbook. for universities / S.V. Bolshakov.- M.: Book. World, 2005.-617 p.

Idrisov A.B. Strategic planning and analysis of investment efficiency: textbook. allowance / A. B. Irisov, S. V. Kartyshev, A.B. Postnikov.- M.: Finance, 1999.-248 p.

Kolchalina N.V. Finance of organizations (enterprises): textbook. for universities / N.V. Kolchina.- 3rd ed., revised. and additional - M.: UNITY-DANA, 2004. - 368 p.

Kondratova I.G. Budgeting as a financial planning tool / I.G. Kondratova // Economic analysis: theory and practice. - 2007. - No. 4. - P. 50-56.

Samsonov N.F. Financial management: textbook. allowance / N.F. Samsonov. - M.: Finance: Unit, 1999. - 495 p.

Financial business plan: textbook. manual / V.M.Popov [etc.]; under general Ed. V.M. Popova. - M.: finance and statistics, 2002. - 480 p.

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Developing an effective distribution of funds in the course of a company’s activities is a key task for the organization’s top management. Financial planning determines not only the current state of affairs, but also the development prospects of the enterprise and its position in a competitive environment.

Conceptual foundations of financial planning

Financial planning and budgeting is an aspect of an enterprise’s activities that involves managing the company’s funds through the creation of funds, coordinating revenue flow processes; management decisions in budgeting must be consistent with the current economic situation, expected income, goals and objectives for various time periods.

The main indicators planned for achievement are reflected in the financial plan - a corporate document reflecting the expected income and expenditure of finances. Financial plans are distinguished by the period of preparation:

• short-term (forecast up to one year; short-term plan is also called a “budget.” The budget reflects the monthly or quarterly movement of funds in the economic and investment field.);
• medium-term (forecast from one to three years);
• long-term (over 3 years).

Two more important conceptual units of budgeting theory are the terms “vertical budgeting” and “horizontal”.

Horizontal implies that the budget is prepared by the company's divisions without the intervention of senior management. Top management gets involved only when departments cannot reach an agreement.

Vertical budget planning means that each department approves the financial plan with the head. The manager can adjust the distribution of expenses by item, eliminate items altogether, or create new ones.

Budget planning of financial activities has the main goal of maximizing net profit over a certain time period. In management and economics, net profit is understood as profit after eliminating all costs at the end of the period.

Budget planning goals

An expanded list of tasks that the company’s management must solve to adjust or implement the budget planning strategy at the enterprise:

• ensuring interdepartmental work, cooperation of departments and divisions;
• creation and testing of a system for monitoring the implementation of the enterprise’s financial plan;
• coordination of ongoing planning;
• assessment of the current costs of the enterprise.

Experts say that the most difficult part is implementing a new financial planning strategy. In order to minimize “complications”, management should adhere to the following line of action:

• study of the current state of cooperation between divisions and departments, analysis of regulations and job descriptions;
• training;
• reorganization of departments in the most gentle way;
• work to improve corporate standards;
• development of a corporate system for tracking financial transactions and meeting planned targets.

Management theory identifies the basic principles that managers must adhere to when planning an enterprise's budget:

1. Principle of participation: every employee, regardless of position, is a participant in the financial budget planning process;
2. The principle of unity: planning must be systematic;
3. The principle of continuity: planning is carried out throughout the entire cycle of implementing the budget strategy, even if the planned indicators are achieved ahead of schedule;
4. The principle of accuracy presupposes maximum detail in the financial plan;
5. The scientific principle: when developing a strategy, a theoretical basis and empirical data should be used;
6. The principle of unity of command: final decisions on controversial budgeting issues are made by top management;
7. The principle of the situation: the financial planning programs being implemented must correspond to the current market situation.

The development of management decisions should be based on methods of expert assessments and extrapolation. The extrapolation method involves the use of objective data on financial indicators for the reporting period. The method of expert assessments involves attracting industry specialists to participate in forecasting the financial situation for the planned period.

Financial planning methodology

The budget planning process should be focused on the use of an extensive methodological base of enterprise economics and management theory. The following methods are allowed:

• regulatory: maximum regulation of all aspects of the company’s activities, i.e. the introduction of standards for wages, material costs, use of production facilities;
• cash flow method: the amounts and timing of receipt of money to the organization’s accounts are used as the main calculation indicator;
• economic and mathematical: the use of mathematical analysis and computer modeling to formulate a financial plan;
• balance sheet: based on such a calculation of the proportions of spending funds, which will ensure the full functioning and uniform development of the company’s divisions;
• calculation and analytical method: considers budget planning as a dynamic process; the implementation of changes should be carried out taking into account current indicators.

The choice of methodological direction should depend on the type of activity of the company, the degree of ramification of its structure and the nature of the movement of financial flows.

Components of an enterprise budget

In the applied aspect, budgeting for financial planning of an organization comes down to the formation of several enterprise budgets at various levels. Enterprise budgets are divided into two types: operational and financial.

The financial budget includes three levels:

1. investment:
2. cash balance: reflects all possible receipts of funds for the reporting period;
3. projected budget: a reporting document reflecting the expected state of affairs at the end of the period. Sometimes accompanied by a detailed SWOT analysis containing information about opportunities and threats during the reporting period;

This type reflects the final indicators and determines the success of the financial plan as a whole.

The operating budget contains an even larger amount and shows the current situation of the enterprise and gives a detailed picture of the expenditure of funds by departments. This type includes the following levels:

1. sales budget: formed taking into account the expected sales volume of the product and its price. When forming prices and estimated sales volumes, you need to focus on sales figures in the previous reporting period, macroeconomic factors, seasonality of demand for goods and services;
2. production budget: defines the type of product/service to be produced and the estimated number of units produced. When forming, it is necessary to take into account the possibility of a sharp change in demand, current inventories of manufactured products, and the cost of a unit of product;
3. inventory budget: reflects the reserves of raw materials, finished products, and fuels and lubricants stored in the warehouse. In financial terms, data must be reflected in quantitative and monetary terms. This section includes the cost budget for raw materials and production materials;
4. wage fund: is formed from staff work rates and planned labor productivity indicators. In this section, it is possible that additional indicators may appear: it depends on what payment system is used in the company - fixed or piecework;
5. overhead costs: this may include some macroeconomic factors (inflation), as well as depreciation costs - expenses for repairs and maintenance of equipment;
6. management expenses: this type includes expenses for sales, expenses for ensuring the functioning of the management apparatus, fees for corporate communications and transport.

All described types of documents must be generated before the planning period begins.

Budget analysis and planning operational level in most cases, ensures achievement of the forecast values ​​of the financial plan, helps to form a positive financial budget. Work during the planning period should begin with the preparation of a profit and loss account - forecast document, reflecting the indicators of the planned activity. The report must contain data systematized and arranged based on listed types expense directions.

Standard financial plan

The document must contain sections:

• consolidated balance sheet forecast;
• balance sheet indicating fixed assets, current assets, accounts receivable and detailing the liabilities;
• calculation of fixed assets after correction of coefficients.

To draw up a financial plan, you need to involve accountants, economists, top managers, and strategic management consultants.

Budget planning is the cornerstone of economic activity, without which the functioning of an enterprise is impossible in a planned or market economic paradigm. Regardless of the type of activity, financial planning is general in nature. Gaining knowledge about this aspect of business will be useful for aspiring entrepreneurs, since budgeting is the most important part of a business plan.

What are the theoretical foundations of budgeting and financial planning? How to implement a budgeting system using the example of an enterprise? Where can I get help in organizing budgeting at an enterprise?

Money loves counting. And especially business assets. Every entrepreneur must know what the budget of his enterprise is and what it is spent on. Otherwise, he will simply go bankrupt and go down the drain. Proper distribution of company finances is called budgeting.

About, how to set up budgeting on site and how financial planning helps increase business income, I, Denis Kuderin, an expert on economic issues, will tell you in this article.

Read to the end - at the end you will find an overview of professional companies that will help organize budgeting in an enterprise on terms favorable to the customer.

1. What is budgeting and financial planning in an enterprise

The family, the school, the city, the state have a budget.

And of course, everyone has one commercial enterprise. Without a budget, you cannot launch a project and organize its work.

Budgeting- budget management component financial planning. With the help of budgeting, the resources and assets of a business entity are distributed over time.

Budget is not an abstract concept, but specific document, in which the company's goals and capabilities are quantified. At large enterprises, budget preparation and management are carried out by special structures - financial departments and financial responsibility centers (FRC).

There is no single budgeting model - individual schemes are developed for each enterprise, taking into account the specifics of the company and its financial capabilities.

Example

For the small enterprise "Babyboom", which sells Japanese children's diapers and has three employees, budgeting comes down to simple drawing up an income-expense budget. This is quite enough - too detailed elaboration of the financial plan is not required.

At a large oil refinery, budgeting several departments are involved, there are 10 independent central financial centers, in addition, the company’s affairs are periodically audited by a third-party consulting firm.

The level of complexity of budgeting directly depends on the size of the business

- an essential part of economic planning and financial management. With its help, the current and future economic activities of the object are determined.

The main tasks of budgeting:

• optimize costs;
• coordinate the work of different departments of the enterprise;
• identify which areas need further development, and which are better to abandon altogether, since they bring losses;
• analyze the financial activities of the enterprise as a whole;
• make a financial forecast;
• strengthen discipline in the company and increase employee motivation.

The period for which a specific budget is developed is called budget period. Usually this is 1 year. Professional financial planning and management are the most important components of successful work.

Important terms on the topic

Article- part of the budget for which business transactions of the same type are planned and accounted for. For example, employee salaries, maintenance of the enterprise territory, costs of transporting products, etc.

Business transaction- a single event in the operation of an enterprise that causes the expenditure of resources or, conversely, the receipt of money, goods, or material assets.

Budget of income and expenses () – financial results activities of the enterprise.

As a rule, the need to organize professional budgeting at an enterprise arises when the number of company personnel exceeds 50-100 people.

Managing financial flows “the old fashioned way” is becoming more and more difficult, profits are becoming less predictable, management is losing the financial “pulse” of the company and is not aware of where and what the money is going to. Closely related to budgeting: in fact, these are two sides of the same process - economic management enterprise.

2. What functions does budgeting perform in an enterprise - 7 main functions

The basic task of budgeting is accounting and development of financial solutions. Analyzing the current situation will help you make better decisions in the future, and comparing the plan with actual results will reveal the strengths and weaknesses of the business.

Experts highlight 7 local budgeting functions. Let's deal with them.

Function 1. Financial planning

Budgeting is, first of all, a current planning tool that helps to find the most rational and profitable options for using the available resources of an enterprise.

There is no business without a plan. This is the basis for forward-looking and reasonable management decisions. Financial planning answers the questions: how much money will you need to run your business? Where exactly will they go?

There are several types of planning: strategic(long term) tactical(for the medium term – from a year to 5), operational– planning current activities. Comprehensive financial accounting ideally covers both long-term and immediate goals of the enterprise.

Function 2. Control and evaluation of performance results

This function is no less important than planning. Even the best plan will be useless if you do not organize monitoring of its implementation and subsequent analysis. By comparing facts with planned indicators, they carry out an objective assessment of the results of work at all its stages.

Professional control will increase the impact of work, prevent unnecessary expenses and help identify the most profitable areas of activity.

Function 3. Evaluation of managers' performance

The implementation of ideas and plans into practice is carried out by company managers. Budgeting helps evaluate the results of their work and serves as the basis for material incentives for leading employees.

Function 4. Motivating employees and managers

In the budgets of individual departments and the entire organization as a whole certain guidelines have been laid down for managers and employees. Budgeting should motivate enterprise employees to achieve target results.

Thus, payments of bonuses and bonuses to employees can and should be tied to budgetary indicators.

Function 5. Formation of a communication environment

An employee has the right and must know exactly what management wants from him. If the company's budget plans and goals are a secret to ordinary employees, then their productivity decreases, they lose involvement in work, and their level of motivation drops.

Competent managers implement the principle of combining upward and downward information flows at the enterprise. Lower levels report everything to higher authorities, but managers also keep employees informed of the company’s financial affairs.

Function 6. Coordination between departments

Departments, workshops and branches of a large enterprise must coordinate their activities with each other within the framework of budgeting for well-coordinated, efficient work.

It is clear that some structures deal with the company’s expenses, while others, for example, the sales department, are busy generating the revenue side of the budget. All the more important relate revenues to costs and optimize both directions in accordance with the basic goals of the enterprise.

Function 7. Manager training

It happens that enterprise managers greet budgeting with hostility. They perceive this process as an additional responsibility that management wants to put on them, and they are also afraid that budgeting will reveal all the shortcomings of their departments.

In such situations, it is necessary to explain the need for budgeting to each responsible person. Compromise option - invite an experienced consulting firm, which will implement, configure and put into operation a new budgeting system, and at the same time train employees in effective financial management methods.

Modern financial accounting is unthinkable without process automation. Now many enterprises are already working (and quite successfully) latest programs automated budget management. More details about them can be found in one of the following sections of the article.

3. How to implement a budgeting system using the example of an enterprise - 5 main stages

So, we know what budgeting is and what tasks it performs. Now let's look at how to organize a budgeting system in practice.

The instructions presented below are not a rigid diagram, but a general algorithm. The implementation of the system is always consistent with the specifics of the organization, its resources and scale.

Stage 1. Design of financial structure

First, develop budgeting principles for your enterprise. The system cannot be implemented blindly.

To create a financial structure project, you need:

• study financial and economic documentation;
• analyze the mechanisms of interaction between departments;
• review current financial accounting rules and standards;
• prepare personnel for implementation at the enterprise new system budgeting.

Then it is created budgeting model, which will control and distribute expense items and financial flows. In accordance with the types of financial transactions, central financial centers are formed (let me remind you, these are the so-called Financial Responsibility Centers).

The number of centers depends on the field of activity of the enterprise and its scale. Central Federal District merges into unified structure, the work of which is coordinated by responsible persons.

Stage 2. Creating a budget structure

At this stage, the structure of budgets is formed in accordance with the centers of financial responsibility.

Examples of budgets for a large enterprise:

• sales budget– calculates sales volume in general and for individual items;
• production budget– calculation of production volumes in accordance with demand, sales volume and the number of finished products in warehouses;
• procurement budget– how many raw materials and consumables will be needed;
• budget for production costs;
• tax budget;
• management budget.

This is just an approximate algorithm for allocating budgets - each company will have its own unique scheme.

Stage 3. Development of accounting and financial policies

Financial accounting policy is specific rules maintaining accounting and production records. These rules comply with the restrictions set by the budgets.

Happens conservative financial policy, but it happens aggressive. We are talking about methods for managing resources, the company’s investment activities and other business processes.

Example

The largest company in the Russian Federation Gazprom adheres to conservative budgeting. The corporation's financial policy allows it to withstand any economic shock.

However, conservatism means consistency in actions. For example, Gazprom continues to develop and finance all its investment projects even with negative developments in market conditions. Moreover, the corporation achieves this using its own rather than borrowed funds.

Another secret of Gazprom’s success is careful control over costs. The financial department of this organization knows when and what each ruble of corporate assets is spent on.

Stage 4. Formation of planning regulations

Responsible persons develop planning regulations, determine budgeting procedures and methods. Then create a regulatory framework, which will regulate financial accounting in the company.

Add to list necessary documents includes: regulations on the financial structure of the enterprise, regulations on the Central Federal District, regulations on budgets, etc.

Companies often have difficulties at this stage. A smart way to overcome them is to delegate the development of regulations to professionals. The next section contains an overview of companies that will help not only with documents, but also with the implementation of a budgeting system in the company’s activities.

Step 5. Drawing up an operating and financial budget

The final stage is drawing up budgets for the planned period. Ideally, you need to conduct a scenario analysis and, based on it, make adjustments to the budgeting system.

What prospects does the system open up? She reduces time and resource costs for the preparation of financial documentation and makes the economic activities of the enterprise more transparent. Unforeseen losses – less, working capital enough, the profitability of the business is growing, profits are growing.

The effectiveness of the system largely depends on how well the software product the company has chosen meets the specifics and goals of the enterprise. Fortunately, today there are enough universal and convenient programs on the market that are easy to learn and easy to adapt to the desired industry.

Watch an interesting video that will answer the question of why budgeting can be ineffective.

4. Professional assistance in budgeting - review of the TOP 3 service companies

Do you want to establish budgeting in your enterprise quickly and professionally? Involve experienced specialists from specialized companies.

The expert department of the HeatherBober magazine monitored the service market and selected three most reliable companies, specializing in budgeting and financial accounting.

The company was founded in 2003. Today it is a leader in system integration not only in the Russian Federation, but throughout the CIS. The company offers a full range of information systems for business. Our employees will help you choose the right system, install it, test it and put it into operation at the customer’s enterprise.

The company has completed several hundred successful projects on the implementation of budget automation and business management. West Concept employees are specialists of the highest level with many years of practical experience. They will establish general budgeting at the site or take over specific structures - the sales department, production or warehouse processes.

The company offers complete control and transparency of budgeting, as well as freedom from routine calculations and errors. SoftProm's specialization is the installation of unique platforms for budget automation.

Software from this organization are Russian-developed products that combine ease of management with the ability to process enormous amounts of information. The company will develop individual budget model of any complexity, will conduct training for the customer company’s employees, and implement a turnkey budgeting system.

Service company for the implementation of information solutions in business projects. Automation of management, budgeting, and other business processes. ARVO deals with orders from “A” to “Z” - analyzes the operation of the enterprise, creates a budget or management automation project, implements the solution and monitors its implementation.

5. How to achieve effective budgeting in an enterprise - 3 effective ways

Setting up budgeting in an organization on your own is not easy.

To ensure successful financial accounting and planning, follow expert advice.

Method 1: Use automated budget management systems

Without automated systems nowhere today. All companies that keep up with the times use modern software for budgeting and financial management.

But before putting systems into practice, study their features.

Examples

Universal platform UPE– a multifunctional logical designer, report generator and a set of flexible interfaces. The program will simulate a budget of any complexity and greatly simplify financial control at the facility.

1C Corporate Finance Management- a program that allows you to successfully manage the resources of an enterprise of any scale - from a small trading company to the largest holding company.

Other programs – PlanDesigner , Microsoft Azure , SharePoint .

Today, such a direction of management as financial budgeting. Very often, companies operating on the principle of budgetary management use a large set of terms, rather than just “budget.” The presence of several budgets in the company fully explains the use of this terminology.

How are financial planning and budgeting related?

Financial planning consists of planning the company's profits and costs in order to ensure its development prospects.

This type of work organization cannot be carried out without taking into account marketing and other types; it must take into account the goal and strategy of the company.

Financial planning is necessary to:

• understand the purpose of product release, the place and time of its production, the final consumer of the product;
• understand what and when will be needed for work in order to be able to move towards the intended goal;
• to ensure that the company's resources are used as efficiently as possible;
• be able to prevent the occurrence of unfavorable situations, foresee risks and think through measures that can reduce them.

4 types of financial planning

1. Strategic.
2. Promising.
3. Long-term and current (business planning).
4. Budgeting (current).​

Budgeting (current planning) is one of the elements of general financial planning, which consists of presenting more accurate indicators of the company's development plan. In essence, budgeting for financial planning of an organization is multilateral planning, which includes accounting, control and analysis of the movement of the company’s material assets.

The purpose of budgeting: to establish the amount and structure of the company’s costs necessary for the implementation of the activities and development of the organization, and to ensure their timely coverage.

How to turn budgeting into a business management tool: a company case

The effect that budgeting allows you to achieve is the following: by planning the turnover (movement) of items and monitoring their actual values ​​for a certain period, you must reach the planned financial indicators. But, unfortunately, in practice this does not happen.

Budgeting should allow not only to plan and quickly control turnover, but also to determine the causes of deviations, and ideally also provide the opportunity to model the financial consequences of management decisions. The editors of the General Director magazine explained how this happens in practice.

Budgeting as a financial planning tool

Budgeting as a financial tool includes both the process of planning the financial side of the company’s work and the process of general planning. This mechanism justifies itself in the case when there is a need to increase the accuracy of planned indicators, if the enterprise needs to introduce a mode of saving material resources.

Budget- planning of financial income and expenses. Typically, the budget reflects the financial, operating and investment flow of the company's funds (receipts and expenses) for one year. There are 2 types of budgets that have received active practical application in financial management: operating and capital budgets.

Budgeting is a set of interdependent processes aimed at planning, analyzing and monitoring the company’s work with the goal of... Moreover, financial budgeting can be focused both on the entire company and on individual production areas and divisions.

Budgeting performs the following functions.

1. A budget is a tool for current planning. Determines ways to use enterprise resources, focusing on market potential. When drawing up the budget, potential risks and opportunities to prevent or overcome them should be taken into account.
2. Budget is a means of monitoring and evaluating performance results. It is possible to monitor and evaluate performance results by comparing actual indicators with previously planned ones. Using a budget, you can control the factors that influence the company's performance. Regular monitoring will make it possible to respond to undesirable changes in a timely manner; management will have time to take measures to eliminate the risk.
3. Budgets provide criteria for evaluating the work of managers. Factors included in the enterprise budget determine the manager's area of ​​responsibility. The budget fulfillment indicator underlies the assessment of a specialist’s performance and determines the system of material incentives for employees of a particular department. Many companies use financial budgeting to objectively evaluate the performance of managers.
4. Budget is a means of motivation. The goals and guidelines for the activities of the company and its divisions are part of the budget and perform a motivational function. As a rule, employees strive to achieve a goal by fulfilling a work plan. But motivation can also contribute to the development of tense relationships in the team, which will negatively affect the implementation of assigned production tasks. This is possible if managers, using financial budgeting as the main motivational tool, begin to pursue those who do not fulfill the production plan.
5. The budget shapes the communication environment. The leader must make employees aware of his intentions. If this is not done, then planning becomes meaningless. An established communication environment is one of the main conditions for effective budgeting. Information should flow in the form of upward and downward flows. Upward flow: information flows from lower-level managers to more senior managers and specialists. Downward flow: Information is communicated from the top down in the form of assigned tasks and a unit's work plan. Effective financial budgeting is possible if the communication system is well organized and contains comprehensive information.
6. Budgeting helps maintain and enhance coordination between departments. There are elements of company management in which the heads of structural units must make decisions independently, which is very important for coordination between departments.
7. Budgeting is a tool for training managers. Formation and approval of the company's budget favors the fact that managers comprehensively study the activities of the enterprise, consciously approach the determination of desired indicators and planning, and understand the connection of their own indicators with other important production centers.

Financial budgeting cannot be effectively implemented if the company does not have established ways to connect departments with each other. The leading role in the budgeting system is given to vertical flows of information. Top-level managers do not have the information necessary to develop a budget, while low-level managers have it in full (for example, issues related to the sale of manufactured products and the purchase of materials for production, the need for equipment, consumption rates of raw materials, etc. .).

In order for such information to be transmitted, it is necessary to use the “bottom-up” principle. Then senior managers will know about the company's situation and will be able to more accurately plan its development. To communicate such data, a top-down approach must be used.

• How to increase production volumes by creating a profit conveyor

Financial budgeting: advantages and disadvantages of implementation

Benefits of Financial Budgeting

• has a positive effect on attitude towards work, increasing employee motivation;
• makes it possible to coordinate the activities of the entire company;
• conducting a budget analysis makes it possible to make timely amendments to it;
• makes it possible to develop and improve the process of distribution of labor and material resources;
• improves the communication process;
• acts as a tool that allows for comparison of performance indicators (planned and achieved).

Budgeting is not without its disadvantages.

• employees perceive financial budgeting differently (the budget is not always able to cope with everyday work problems or show the reasons for planned violations, it is impossible to include all changes in conditions in the budget, and the professional preparedness of managers does not always allow them to competently analyze the available information);
• the budgeting system is quite expensive and difficult to use;
• Having a budget is not always a means of motivation (if employees are not informed about the budget, they may perceive it as a method to evaluate their work and identify shortcomings);
• financial budgeting can have a negative impact on productivity, as employees try to keep their workload to a minimum, and budgets require high performance, which leads to conflict and decreased productivity;
• discrepancy between the opportunity to achieve the goal and the incentive (if achieving the goal is not particularly difficult, then the budget is not an incentive to increase productivity; if, on the contrary, the goal is too difficult, then faith in its achievement disappears, and again the budget will not help here).

What budgets does financial budgeting require?

Budget management includes the following set of tools for its implementation.

Budget of Income and Expenditures (BIB)	ODR is a tool that allows you to manage operational efficiency. This budget sets out the company's planned income, profitability and labor productivity. Analysis of information on the execution of BDR makes it possible to draw conclusions about the effectiveness of the company and its divisions.
Cash Flow Budget (CFB)	BDDS is a tool that allows you to see the solvency of a company by tracking incoming and outgoing funds. Budget analysis helps to see how much a company can invest in development and how much needs to be spent on core activities. If the BDR makes it possible to assess the company’s profit, then with the help of the BDR the General Director can see what the company will earn and where it will be spent. Let's look at an example. An enterprise can have high profits because it is profitable due to good sales of products. However, the company provides significant deferrals of payments to suppliers. In this case, the BDR will show remarkable profits, but in the BDDS the profitability will be scanty. If we consider that the company may need funds to pay its own suppliers, then there is a high probability that it may find itself in cramped financial conditions (although sales are quite high!). Financial budgeting allows you to anticipate such a turn of events and take appropriate measures to avoid it.
Forecast balance	The forecast balance reflects the assets and liabilities of the company (assets are the value of the company’s property; liabilities are the funds that allow the formation of this property). This budget allows you to see changes in the capital and financial structure of the enterprise, and understand the main sources of financing. In the case when a company is engaged in several types of business, each of which is relatively independent, then financial budgeting is prepared separately for each type. This will allow for effective management of them, because all areas will be given an objective assessment. Otherwise, it may turn out that one direction “exists” at the expense of the other. Even a small enterprise can be considered as a holding company: it has a control unit and interacting business areas. The CEO must monitor the key performance indicators of the business units. Moreover, he does not necessarily have to delve into all the subtleties and nuances all the time, but if problematic situations arise, he must conduct an analysis and understand the reasons.
Investment budget	Investment – this is another budget that must be controlled by the CEO since investments are the most important cash flow. It is the general director who is the person responsible for the development of the enterprise, so he must clearly know: what investment potential the company has, what the funds are directed to, and how effective these investments are. This type of budget can be either independent or a section included in the cash flow budget. It is desirable that financial budgeting reflects the results of all areas of the enterprise’s activities (core, investment and financial).

Budgeting methodology, or

Financial budgeting model allows you to determine the scheme and sequence of calculations of indicators of the entire complex of budgets used in the enterprise. The budgeting methodology formalizes key initial indicators and is documented in a separate document. Despite the fact that budgeting and the financial budget should form the basis of the analysis and organization of the enterprise’s work, many domestic companies do not attach due importance to the formalization and design of the methodology. It is “located” exclusively in the minds of employees who are responsible for preparing and consolidating budgets, and this leads to serious difficulties in calculating indicators.

Financial budgeting model must be integrated. For enterprises that use computer budgeting systems, it is usually not difficult to coordinate budgets, because the system contains interbudgetary connections (financial models are provided by the system). Often small companies MS Excel is used as an information system, which is also not an obstacle to ensuring that financial budgeting and planning in an enterprise are organized properly (it is possible to create an integrated financial model), you just need to link items of different budgets with each other.

If you use an integrated model, you can calculate the budget different ways. Practical use The budget does not always coincide with the forecasted indicators, because unforeseen deviations may occur (for example, the cost of raw materials will increase more or faster than expected, the inflation rate will exceed expected, etc.). The enterprise must be prepared for such “surprises”. For this purpose, several budget options are drawn up: the most probable, optimistic and pessimistic.

When developing a financial budgeting model, you need to take into account existing limitations. Financial budgeting may be affected by production and logistics restrictions that are associated with seasonality, and, of course, market restrictions related to product prices and volumes of production. For example, an ice cream company may be constrained by production capacity (in summer) and market demand (in winter).

The financial budgeting model should include the following sections:

• flowchart for drawing up consolidated budgets (the procedure for drawing up various budgets);
• methodology for determining the values ​​of each budget item (detailed description in a convenient format);
• key hypotheses for each budget;
• methodology for informing on real indicators for the purpose of their formation and systematization;
• methodology for conducting analytical work on budget implementation.

Once the financial model methodology has been developed, the enterprise can move on to the next stage of work, which is organizing financial budgeting.

How to organize financial budgeting at an enterprise: step-by-step instructions

Step 1. We regulate budget processes

Enterprise managers spend a lot of time refining forecast data after the materials have been submitted to the financial department. It is desirable that the documents do not require clarification or modification, but, unfortunately, this turns out to be almost unrealistic. But still, it is worth striving to ensure that the number of modifications gradually decreases (until they disappear completely).

Typically, the finance department cannot force timely submissions because it does not have leverage over those who prepare functional budgets. Only the general director can do this by establishing deadlines for submitting materials and the responsibility of budget owners. The finance department is responsible for the correct use of budget calculation methods.

The choice of control methods depends on the information. This approach will make it possible to intelligently use work time and the general director, and employees of the enterprise with a high qualification level. It is quite possible that your business does not need financial budgeting to be fully automated. As practice shows, only 20% of information is used for systematic analysis.

The following control methods are most often used.

1. Constant monitoring is carried out either periodically (quite often) or every day. The received data is accumulated in the information system. These reports are viewable and contain up-to-date, reliable information. This may be data on revenue received, shipments made, debts of the enterprise, etc.
2. Period-closing control is carried out at the end of a certain period of time (for example, after a month or quarter). This type of audit covers expense items related to the company’s core activities, which, as a rule, do not depend on turnover. This could be data on the company’s profits and investments, payroll, etc.
3. On-demand control is carried out in relation to those indicators that accumulate in the fiscal accounting system; they do not require regular thorough analysis. The so-called thematic inspection is carried out only if necessary (for example, if you need to make sure the feasibility of repairing the ceiling office space). This type of control applies to costs that cannot be called strategically important and which remain relatively unchanged (for example, costs for the administrative and economic needs of the enterprise). The need may arise in the event of a sharp increase in costs for repair work, social benefits or IT technologies, etc.

Step 2. Analyze budgets

Budget analysis takes place in 2 stages.

1. Coordination of plans. The general director of a company performs many functions, including the coordination function between various services of the enterprise. Budgeting for the financial activities of an enterprise may also need to be compared in order to achieve planned tasks by various departments of the organization was reflected in reports on time and accurately (for example, during the work of purchasing, production and supply departments). The plans of the leading departments must be agreed upon before financial budgeting is formed; all data must be correctly shown in the budgets of these services. In this case, it will be possible to compare budgets with each other.

As practice shows, such coordination is quite difficult to achieve. Typically, purchasing and production departments need detailed plan for a long period of time, and the department involved in the supply of finished products is not able to provide such a plan. Moreover, a similar situation can be observed in businesses not related to the sale of consumer products. This can happen at enterprises in industries whose activities are based on long-term contracts (for example, long-term construction, production of raw materials, etc.).

Usually the problem is solved by determining the timing that is optimal for all parties production process. In addition, it is necessary to provide for the detail of drawing up a plan for the product line. If we talk about time frames, they must be determined in such a way that their further reduction (when planning for a period shorter than the production cycle) will reduce the efficiency of production and procurement to a level that is unacceptable. Such deadlines will allow the sales department to predict its work with an accuracy of up to 80% (which is quite acceptable and the most reliable option).

2. Selection of indicators. It is very important that financial budgeting makes it possible to control both generally accepted indicators of financial activity and indicators for solving the company’s tactical problems (for example, improving product quality, increasing labor productivity, reducing labor costs, etc.). To do this, you will need to determine what indicators will interest you in the next reporting period, and the financial department will have to develop a methodology for collecting information and its generation. In addition, you will need to remove from the list data that will no longer interest you. Otherwise, reports over a short period of time will be longer than the average novel.

When analyzing the indicators presented to the budget, it is not at all necessary to delve into all the data. You should only pay attention to information that shows the key volume of income and costs. A full analysis, a conclusion on the objectivity of the indicators and the correct use of the methodology is the responsibility of the financial department of the enterprise. When forming financial budgeting, you can ask the budget owner about the data that interests you, rather than listening to a detailed report on all indicators. You can add a column to the reporting form in which the structure of indicators and articles that need improvement will be displayed (then they will not be forgotten).

Particular attention must be paid to the analysis of expense items to be managed and the factors influencing these expenses. Items and factors can be identified by the finance department.

One gets the impression that absolutely all items can be managed, but this is not the case. There are types of businesses in which it is almost impossible to manage the product range. This means that the change in the cost of production associated with its choice also becomes uncontrollable. But do not forget that the cost may change due to violation of unit cost standards, so if inconsistencies appear, it is necessary to understand their reasons.

Step 3. Implement a control system

To save the time required to monitor the implementation of budgets, you can use a system of indicators. It signals if attention is required to a problem.

The CEO should require the following from the finance department.

1. Implement a system of limits. Finance department staff will be required to set limits on budgets and monitor compliance with them. If this is done, then you won't have to be distracted when financial budgeting requires minor changes. Your intervention will only be required in case of serious deviations from the established limit, and not constantly, as is often the case in most companies.
2. Use different indicators for different periods. To facilitate the work with reporting documentation, it is advisable to set different deadlines for its submission.
3. Formalize comments on the indicators reflected in the reports. Quite often questions arise regarding certain indicators in the budget. As a rule, all comments are given in notes attached to the report. You want to keep these additions as few as possible, so ask that only important data be commented on (you should clearly identify when indicators need clarification).

Step 4. Properly organize the meeting of the budget committee. Meetings that discuss financial budgeting can sometimes take an unreasonably long time. As a rule, the reasons are as follows: repeated transfers due to poor preparation of materials (errors in calculations, different financial budgeting models are used, which, in fact, are incompatible with each other and do not make it possible to conduct a comparative analysis of indicators), consideration of issues that have nothing to do with budget formation. Of course, it is possible to influence the situation, but to do this it is worth paying attention to the features associated with organizing such meetings.

1. Prepare quality materials on budgets is the direct responsibility of not only the finance department, but also all budget owners. Very often, heads of structural divisions treat budget preparation as an unpleasant duty and approach the issue very formally (without calculating, they adjust the results, do it somehow and do not try to reflect the actual state of affairs). Managers of this type usually provide an unsubscribe to the financial department, and try to discuss real indicators personally with the general director. This approach to resolving the issue is very dangerous. First of all, in this case there is no point in convening a meeting of the budget commission, and the general director (by the grace of such a boss) is wasting his time. Please note: financial budgeting should not be compiled by the finance department - it simply monitors the correctness of the materials, can point out shortcomings and inaccuracies (if any) and make recommendations for correcting them. But all responsibility for drawing up a budget rests solely with its owner. It would seem that this is a truism, but it is used extremely rarely.
2. It is necessary to use a procedure for adjusting budgets to avoid multiple approvals of indicators. Often the cause of errors in budget materials is multiple changes in initial indicators after the materials have been submitted to the financial department. In this case, it is necessary to draw the attention of employees to the fact that forecasts cannot be improved constantly. It is recommended to introduce a rule: heads of structural units can propose changes to financial budgeting only during summing up the results for the reporting period or include them in the budget of the next period.
3. Discussion only important indicators. Budget owners can resolve all minor issues. The Pareto rule states: the success of a process depends on a minimum of well-chosen actions that are the most important. It is also suitable for the approval process that goes through financial budgeting. You need to identify budget items that do not have a big impact on the business process, i.e. set limits. Then transfer the right to department heads (budget owners) to determine items based on these limits. Each company has the right to independently choose these budget items, but do not forget about their systematic nature.
4. It is advisable to provide meetings on thematic sections in large companies, because here budget meetings can be quite lengthy. This approach will save time for managers who are not directly related to the issue under discussion (for example, the head of a repair shop is not related to the head of the marketing department).

Why financial budgeting can be ineffective

Mistake No. 1. Formal approach

If a company does not consider budgeting as a method of financial planning, but approaches it formally, then the plan is drawn up simply for the sake of having it. Naturally, such plans cannot be implemented. You can determine whether a budget has been formally drawn up based on certain criteria.

1.The budget is based on organizational structure, not financial structure. It often happens that enterprises consider their own as separate centers of financial responsibility. But organizational and financial structures perform fundamentally different functions.

The financial structure reveals the formation of the enterprise's profit. It defines the mechanism for forming the cost of products, the structure of cash flows, and the logic for obtaining results. The organizational structure reflects the hierarchy of departments and the order of their subordination. Quite often it is built historically and distorts the true state of affairs in the company (business).

When developing financial budgeting, it is necessary first of all to take the company’s business model as a guide. First, you need to understand the value chain and business processes carried out in the enterprise. Having decided on this, it will be possible to form a financial structure that will reflect the company’s activities and identify the centers responsible for the performance of indicators.

For example, a company owns several stores selling clothing and shoes. The financial structure should include 2 separate responsibility centers: “Clothing” and “Shoes”. There may be no similar units within the organizational structure.

2. The mechanism of internal tariffs has not been developed. Typically, an enterprise consists of several interacting business units: they buy something, sell something, provide some services, etc. In a similar way, a value chain is formed in the company. Financial budgeting must reflect this, which can be done by developing an internal pricing mechanism.

Let's assume that the company has a transport division. This means that it is worth setting internal tariffs for its services (transfer). This makes sense for two reasons:

• firstly, this unit should not operate at a loss;
• secondly, these prices cannot exceed the cost of a similar service from a third-party provider.

If it is impossible to fulfill these conditions (or one of them), it will be more profitable for the company to liquidate this division and use the services of a third-party carrier. In other words, internal tariffs reveal the essence of economic processes and make it possible to reduce the costs of each structural unit.

3. There is no motivation system. A motivation system is a system that makes it possible to increase the interest of process participants in its effectiveness. It can “revive” financial budgeting. Productive performance should be reflected in participants' salaries labor process. If this is there, then the budget becomes interesting to employees, and it turns from a formal tablet into a part of their life.

Mistake No. 2. Scattering of resources. Quite often, managers of rapidly growing companies become victims of excitement: sales increase, money appears, but the rate at which they spend it is much higher than the rate at which they earn money. This trend can ultimately lead a completely successful company into a state of financial crisis. To prevent this from happening, it is not at all necessary to develop and implement a technologically complex budget.

You can start small: financial planning and budgeting, cheat sheet. The finance department needs to prepare an estimate of revenues, costs and projected profits by the beginning of the year. You will need to determine the amount that you can spend on the development of the enterprise: building new workshops, setting up a new production line, creating new sales points, etc. Next, you plan your expenses based on this data. In this case, financial management will be systematized, and you will be able to avoid unnecessary expenses.

Mistake #3: The CEO is involved in operational budgeting. If the general director personally signs payments, controls costs for office supplies and other “trifles,” it means that the company has not established a system of delegation of authority. The manager should not exercise operational control; in this case, he may not have enough time to solve his main task, which is to develop a development strategy for the company. You will find a step-by-step algorithm for implementing strategic management in the article

At large enterprises, operational control is carried out by the treasury. His responsibilities include monitoring financial budgeting, tracking requests and costs, and making decisions regarding requests from structural units. If the organization is small, then this can be done by a finance manager. Established limits may become a formal criterion for the distribution of financial resources.

Enterprise budgeting and financial planning: 5 functions and 3 stages of budgeting + 9 detailed steps for implementation + 2 approaches to automation + overview of budgeting in Excel and 1C.

The key to a company's success is the competent organization of its work. Simplification, systematization and automation of business processes significantly increase the competitiveness of an enterprise.

Clear and relevant financial planning and budgeting at the enterprise– a very important and promising part of work organization. Any manager and owner of a business, even a small one, must know the basics of the process and implement it in their company.

What is financial planning and budgeting in an enterprise?

Financial planning– this is the whale on which the entire organization of the company’s activities rests.

It is associated with other planning, is present in any business (just in different forms), and is also an assessment of the mission and aspirations of the company, taking into account the required funds and their availability at the right time.

Financial planning is carried out for the following time periods:

• Long-term or strategic planning characterizes the main goals of the organization, ways to achieve it, its size and scope of work in a qualitative or general quantitative form for a period of more than 5 years.
• Medium-term or tactical planning is formed for a period of 1 to 5 years, and establishes the funds required to achieve strategic goals.
• Short-term or operational planning is formed in the current work of the enterprise, in fact is budgeting.

In other words, budgeting in an enterprise is short-term financial planning.

And if you look at it more broadly, it is not only resource planning, but also enterprise management using criteria that take into account the contribution to the growth of the company, its departments and employees.

The result of budgeting is budget– a document from the company for the near future.

What functions does budgeting perform in an enterprise?

1. Budgeting looks for ways to allocate resources taking into account the market situation and its capabilities, anticipates problems and risks, and suggests ways to solve them.

Represents financial control of departments and employees, performs an analysis of efficiency by comparing planned results and achieved ones.

Tracking various indicators allows you to see their impact on the results and make adjustments.

2. Enterprise budgeting system provides an opportunity to track the performance of managers, based on the fulfillment of their goals, and also serves as a financial motivation for the work of employees.
3. Budgets have a good effect due to top-down information in the format of plans.

   This means it is supported communication between different levels of employees and an understanding is formed among them of both the mission and tasks of each employee and department, and of the entire enterprise.

4. Strengthens collaboration between departments, contributes to a better understanding of the characteristics of each of the departments.

3 stages of the budget period

Financial planning and budgeting at an enterprise is carried out cyclically and for a certain period (budget period). And the budget period is divided into certain stages.

Stages of budgeting in an enterprise:

1. Planning – carried out before the start of the budget period and implies the following:

• determination of tasks for the budget period;
• sampling, analysis, grouping of data;
• designing estimates, their analysis, adjustment and approval.

Implementation – execution of estimates, analysis and correction of operational indicators.

Completion - writing reports on the execution of estimates and their goals, analysis of indicators, conclusions for subsequent design of estimates.

How to implement budgeting in an enterprise?

To build a working budget system for a company, you need to go through several steps, each of them is important and requires careful study.

9 steps to implement budgeting:

Determine its goals and objectives.

The functions of budgeting were described above; they can be taken as a basis.

Only the head of the company can define goals more specifically, based on the need for information necessary to make decisions on managing the company and its finances.

Select budgets that will be maintained at the enterprise.


Budgeting involves having multiple budgets.

But there are two main ones:

• operating(sales, remaining goods, purchases, various expenses, etc.);
• financial, it is calculated from the operational (estimate of income and expenses, cash, etc.).

The enterprise can also carry out auxiliary budget calculation, for example, capital expenditures or credit. And also special, which depends on the specialization of the company.

Identify sources of information.

Gathering information is as important a stage as any other. Up-to-date information is invaluable.

For financial planning and budgeting, not only internal information of the company is collected, but also external information, which gives an understanding of the realities of the market and the needs of the clientele.

Data sources can be the following:

• static accounting;
• tax reports;
• inspection reports;
• other data sources, such as research and expertise;
• changes in legislation and other government publications;
• research of analytical firms;
• Media and advertising;
• reporting of competitors, partners and clients.

Identify the performers.

In a small enterprise, the accounting department or the chief accountant can manage budgets.

In a medium-sized enterprise, there is already a need to form new divisions, and therefore the planning and economic department or the director of finance will deal with the calculations.

At the enterprise large size Difficulties arise with collecting and grouping data, obtaining up-to-date information in a short time, and transparency of the process. Therefore, the budget calculation management scheme has a complex structure. It is handled by the finance department.

The financial department in a large enterprise is usually divided into the following divisions:

• planning and analytical;
• control and accounting;
• managerial.

Each of these divisions performs its own functions in the system.

Construct a diagram of financial responsibility centers.

This point is necessary if certain persons (department managers, for example) are expected to be responsible for the implementation of budgets, and also if the process is related to employee motivation.

Design a budget model.

Write regulations.

In production, the budget calculation system must be standardized using certain forms and instructions.

Budget regulations must be drawn up, which collect all documents related to budgets. It prescribes the rules for maintaining estimates for all departments of the company, and also contains the forms of applicable documents, reports, etc.

The process of drawing up regulations is very responsible and labor-intensive. Once it is ready, the process of personnel training begins. The success of implementing a budget system in an enterprise depends on how competently and completely the regulations are drawn up.

When calculating budget indicators, use standards and forms. This is very convenient to use, but compiling them is a rather meticulous process.

Before calculating standards, it is important to understand how justified such a decision is and whether there is really a need and feasibility in their development.

All compiled standards (or only the main ones) are entered into the table. An example of such a table is given below.

Train staff.

Plan a budget for the first billing period.

Budgeting automation

Budgets are inextricably linked with financial planning and often with management accounting. Therefore, process automation software is usually complex.

In general, there are two approaches to automating budgeting in an enterprise, namely:

1. Selecting software, then setting up a budget system.
2. Setting up budgeting manually with subsequent automation.

As can be seen from the diagram, the first option is simpler and more logical. Exceptions include companies with atypical payment requirements.

Making a choice in favor first approach to automation, the most important thing is not to make a mistake in choosing a program.

Without a clear understanding of the structure of further work, it is difficult to formulate software requirements. Therefore, if you choose the first option, pay enough attention to planning and preparing the project.

Second approach is used much less frequently than the first due to its apparent complexity. And often not as a balanced decision, but out of necessity.

This situation may arise due to failure with the first approach, when the budget system has already been partially implemented, but the software product is not suitable and working with it is inconvenient and ineffective.

In the second approach, the stage of collecting information and preparing it takes the most time, since this will be done manually. But there is a much greater chance of eventually having a clear and effective system financial planning.

Automation of financial planning in an enterprise can be performed on one's own provided there are suitably trained employees.

This approach is, of course, many times cheaper. But in practice, it turns out that without the involvement of third parties (financial consultants, programmers), performing this task takes too much time and labor resources and may lead to the wrong place.

In Russia, Excel and 1C programs are most often used for automated calculations. Let's look at examples in each of these programs.

1. Budgeting in Excel.

The work in this program consists of writing budget forms and linking them using formulas and macros.

This program is suitable with a simple structure (as shown in the example below).

For large companies, working in Excel will be ineffective and confusing.

One of the main disadvantages of this program is single-player mode. Other quite significant disadvantages: availability of the same information for all users and difficulties in consolidating information.

In the figure below you can see the form of the budget of income and expenses:

The following is the form of the funds flow budget:

The following table is the final table – the balance sheet of the enterprise. You can also see all types of budgets maintained at the enterprise in tabs (sheets):

2. Budgeting in 1C.

For financial planning, enterprises most often use 1C Financier. Of course, this program works much more effectively for budgets and financial planning than Excel.

The program is quite flexible and makes it possible to customize budget forms, their communication, and information collection in an appropriate way. There is also a very convenient function for connecting with external accounting systems for planning and recording data.

If we talk specifically about the 1C “Financier” program, it provides the following opportunities:

• budget modeling;
• registration of indicators by departments;
• budget approval;
• correction and its coordination;
• communication with external sources of information;
• reports.

The budget is entered through a form, the principle of which is very similar to tables in Excel, which greatly simplifies the work when moving from one program to another.

At the moment, budgeting in 1C is the most acceptable option.

Firstly, most likely, your company already uses 1C products, and you have an idea of ​​what kind of software we are talking about.

Secondly, this program provides fairly flexible and effective functionality for relatively little money.

We covered the basics of such a broad topic as enterprise budgeting.

Of course, the information presented is not enough to set up a system of budgets and financial planning in the company, and you will need the services of specialists. After all, the approach to such a serious issue must be individual and based on the needs of each enterprise individually.

Have you noticed that budgeting in your company is ineffective?

Let's figure it out possible reasons this problem:

However, you understand what budgeting is and how it is useful for managing a company, and you also already know what to look for when implementing, setting up and automating budgeting and financial planning in an enterprise.

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