Budgeting as a tool for managing enterprise strategy
Keywords:
budgeting, integrated enterprise management system, budgeting process, algorithm of budgeting, Centers of Financial Responsibility, Cash Flow Budget, Income and Expense Budget.Abstract
In this article, the problem of effective conducting budgeting as one of management
tools which costs in the center of attention of scientists as for today the
organizations quite often practice creation of budgets is considered. However,
now scientists did not give unambiguous definition and purpose of budgeting
and therefore the budgeting system seldom brings to the entities desirable result.
The purpose of this article to analyse efficiency of budgeting which showed
that it is possible to allocate basic reasons of this problem: lack of the accurate
purpose of a budgeting system in case of its implementation at the entity; a gap
between strategic objectives of the entity and the purposes of a budgeting system;
lack of support of implementation process of strategy by budgeting.
As a result of our research we found out that enhancement of a budgeting
system by means of implementation of an algorithm of creation of
budgets in it gives the chance of increase in efficiency of implementation
process of strategy of the entity as: orients it to implementation process of
strategy of the entity; the ordered system of creation of budgets will concentrate
on value increase of the entity.
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