ORGANIZATIONAL BUDGET MODELLING IN ENTERPRISE MANAGEMENT

Abstract

It is expedient to improve technology of classical budgeting by streamlining organizational aspects when building a holistic business system. The introduction of improved methodological provisions will ensure effective functioning of enterprise in future periods according to pre-defined parameters. The purpose of the article is to substantiate concept of classical budgeting as a management technology, and organization of its implementation and execution at a state enterprise. The article characterizes concept of budget and budgeting, provides an author’s interpretation of the concept of “budgeting”. State-owned enterprises are recommended to budget within framework of financial planning. The organization of budgeting at enterprise is substantiated through development of normative regulations (the project of architecture of document of Regulations on budgeting is offered), construction of model of budgeting and description of basic procedures of such technology. This allows management to assess the profitability of business processes, which set performance targets. The system of budgeting of enterprise under conditions of regulation of budgetary forms and observance of provided regulatory provisions provides expected economic effect in a long-term time interval. The components of budgeting system in the context of organizational procedures are identified. To implement the technology of budgeting, the preparation of the basic structure of budgets is outlined, sequence of formation of functional budgets of enterprise is presented and projections of budget structure are determined. It is recommended for state-owned enterprises to apply flexible budgeting and planning. Certain organizational aspects of the implementation of budgeting system at enterprise facilitate the procedures of forming the budget structure and use of budgeting technology in management system of enterprises. It is concluded that it is recommended for state-owned enterprises to carry out budgeting and financial planning as mutually agreed processes in the management of strategic aspects of economic activity.