Budgeting is an internal accounting of receipts and expenditures of an enterprise and its subdivisions, which enables to identify the actual financial result of the operation of a company.

The result of budgeting - application of a procedure for the management of expenses as per each such subdivision, a monthly calculation of financial results, amounts of incentive and measures, which are to be taken in the next month for the adjustment of the results obtained.

The budgeting includes several stages as follows:

  • Formulation of purposes and objectives of budgeting as a managerial technology I accordance with the company's business specificity;
  • Principles of budgeting in the company;
  • Study of methods of budgeting;
  • Financial structure analysis;
  • Determination of kinds of budgets;
  • Determination of budget formats;
  • Approval of the budget regulations;
  • Distribution of functions/duties among the management personnel;
  • Drawing up of a documents circulation schedule;
  • Budgeting automation.




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