IMPLEMENTATION OF AN OPERATIONAL BUDGETING SYSTEM AT MEDIUM-SIZED ENTERPRISES

Abstract

The article discusses the main trends and ways to improve the budgeting process as an instrument of operational financial controlling at the enterprise. The main purpose of the budgeting system are to clearly establish areas of use of material and financial resources of the enterprise in order to increase the overall efficiency of the enterprise and achieve strategically important indicators of the economic activity of the enterprise. Budgeting is not so much a tool as management technology, which involves the preparation, preparation and approval of a system of related budgets, agreed in terms, motivation for their implementation, control over the implementation with further regulation of economic activity of the enterprise or adjusting its targets for the sake of reconciliation of budget (planned) indicators with actual ones, taking into account the influence of environmental factors. As a way of solving problems of a financial nature, one should also pay attention to the notion of operational control, which aims at providing information and coordinating the tools of current decisions.The appropriateness of introducing budgeting at enterprises of all sectors of the economy, sizes and directions of activity is explained by the fact that the construction and analysis of budget forms provides the company’s management with information to justify and predict the consequences of a management decision. The basis of budgeting, in particular its quality and informative nature, is management accounting, which is intended for making internal management decisions. An effective technology for combining strategic and tactical goals of an enterprise operating in the budgeting system is the Balanced Scorecard (BSC). BSC enables the company to carry out the strategic planning and annual budgeting processes in concert. The introduction of benchmarks allows you to manage your financial responsibility centers by setting limits, regulatory values, or limits on accepted indicators. The problems of building and implementing budgeting as a progressive management technology in companies in many countries of the world were solved a quarter of a century ago, in Ukraine this process is only gaining momentum and still covers a small audience.