The introduction of budgeting as an effective tool for the performance of companies

Recently, the introduction of budgeting is simply necessary in the management of the organization. At the same time, if earlier information on the nature of the budgetary administration was of interest, then today interest in this area becomes practical.

Thus, the introduction of budgeting will be effective if the concepts and tools used by this technology are correctly defined. You also need to clearly understand who is taking part in it, what costs are planned to be incurred and what results are expected to be obtained. It is for this purpose that special corporate events are held in the field of budgetary management of a training nature.

However, it is not always the company's managers, commercial directors, purchasing directors, or production managers who understand the results of effective budgeting implementation. And after all, they are often at the enterprise responsible for the formation and execution of budgets. Therefore, to monitor the implementation of the budgets accepted by the organization, these officials should know the order and articles on which they are formed and planned.

The introduction of a budgeting system for any organization is associated with the emergence of a large number of problems. Often, organizations as the first stage choose the development of budget formats. However, this approach can lead either to failure (the unworked processes of collecting the necessary data may lead to a delay in the formation of the budget) or to the fact that the budget will simply be created with a great delay and can no longer be accepted as a decision-making tool.

The main tasks facing the organization when creating a budget are:

- Budgeting systems, consisting in the development of a financial structure within the boundaries of which the process will be directly conducted;

- formats of budgets, their structure and forms;

- the organization of budgeting, aimed at the development of regulations and the appointment of responsible persons;

- automation and other technical side of the budgeting process, the use of special software.

The introduction of budgeting is a complex process, the main components of which are the implementation of program and administrative activities. These measures should be used only in aggregate, since it is impossible to work with the subsequent introduction of budgeting using software alone. And concentrating mainly on software and automation and not taking into account the organizational part of this process, the company risks getting low efficiency budgeting.

For the results and timing of the implementation of the draft budget should meet a specially trained specialist - manager. As a rule, this is the head of the budgeting department or the financial director. If a responsible person is appointed, when this is a financier, an economist, an accountant or a programmer, such budgeting is doomed to failure in advance, as these experts have no leverage to influence the company's management.