Operational and network status Figure 6.1 shows how a firm's status is formed, which consists of two main components or varieties: operational and network. Operational status is related to the actual quality of the firm's goods and / or services. It depends on

6. Operational plan project 6.1. Operating costs Direct costs and overheads Operating costs include the cost of purchasing machines (upfront lease payments), general costs and personnel costs.

Budget This section describes the costs associated with developing and implementing a marketing plan. While the preliminary budgets may be revised to reflect the actual state of the funding sources, the result will only be

Operating budgeting begins with developing a sales budget. Determining the total volume of sales is the responsibility of senior management, which forms its decision in consultation with the sales manager. Based on the sales budget, production and cost budgets are built products sold... Budgeting involves planning more than just cash flows, but also the needs for resources, expressed in natural units of measurement (the number of people, equipment, production areas, meters of fabric, etc.).

1. Development of a sales budget.

The sales budget is the result of discussions between managers, analysts and the staff of the implementation department of the company's product plans. Sales planning is a complex process in which many factors must be taken into account: sales history, the general state of the economy, pricing policy, marketing research results, production capacity, competition, government restrictions, etc.

Based on the sales forecast, a sales budget is drawn up (Table 12).

Table 12. Sales budget

In order to be able to sell the planned amount of garments, OJSC "Impulse" must produce them. Therefore, in this case, a production budget is needed.

2. Development of the production budget.

The production budget determines how many units of product must be produced to meet the sales budget and to maintain inventory of finished goods at the level planned by management.

The production budget is drawn up in both natural and monetary units. The volume of production in natural units (pcs.) Is calculated as follows:

Production budget = Sales budget + Projected stock of finished goods at the end of the year - Stock of finished goods at the beginning of the period

As noted above, the initial stock of dresses amounted to 100 pieces, suits - 50 pieces. (see table 11). The management in its plans approved the value of finished goods at the end of the reporting period, respectively, at the level of 1,100 and 50 units. (see Table 5).

Consequently, the production budget has the following form (Table 13).

Table 13. Production budget in natural units

To determine the total cost of production, it is necessary to calculate the cost of a unit of production, which consists of the cost of materials, labor and overhead costs. Therefore, the next stage in the preparation of the general budget is the preparation of private budgets: a budget for materials costs, a budget for labor costs and an overhead budget.

3. Development of the budget for the costs of materials and the budget for the procurement of materials in natural units.

When planning the procurement of materials, it is necessary to take into account the level of stocks of materials both at the beginning and at the end of the planning period (the latter is determined by management).

To calculate the consumption of materials in natural units, you need to know:

• · Stocks of material at the beginning of the reporting period;
• · Material requirements to meet the production budget.

By the time the budget was drawn up, the enterprise had 7000 m of flannel and 6000 m of wool in the warehouse (see Table 10). Consumption of materials (in meters) per unit of production was presented in Table 7. Based on these data, the costs of materials are determined when fulfilling the production plan (Table 14).

By the time the budget was drawn up, the warehouse of the enterprise had 7000 m of flannel and 6000 m of wool, the cost of which was determined as 49 and 60 thousand rubles, respectively. (see table 10). The FIFO method is used to estimate stocks of materials. The planned price of materials for 2009 was determined in table. 6.

Table 14. Material costs required for the production of the planned volume of finished products, m

The cost of materials required to ensure production targets is calculated as follows:

The amount of materials required to support the production plan = Materials required to produce the planned volume of production - Stocks of materials at the beginning of the period.

The calculation of direct material costs required for the production of the planned volume of products is presented in table. 15.

Table 15. Budget of direct material costs

In order to determine how many materials must be purchased in the planning period, one should take into account the level of stocks at the end of the period the company wants to reach (see Table 8).

The budget for the procurement of basic materials is shown in table. sixteen.

Table 16. The budget for the procurement of basic materials in physical and value terms

4. Development of a budget for direct labor costs.

The cost of labor expended depends on the type and quantity (see Table 13) of the product produced, its labor intensity (see Table 7), and the wage system (see Table 6). These data are used in the budgeting of direct labor costs (Table 17).

Table 17. Budget of labor costs in physical and value terms

5. Development of an overhead budget.

The preparation of this budget is preceded by the classification of overhead costs into fixed and variable. For this, their dependence on the volume of output is investigated. If the overhead does not change when decreasing or increasing production program, then such costs will be considered constant. If such a relationship exists, then these are variable costs.

The basis for the distribution of overhead costs between certain types of products in accordance with the accounting policy of OJSC "Impulse" is the wages of the main production workers. Their planning is also carried out in accordance with the expected time fund of the main production workers. Below is a budget based on a projected 30,000 hour labor input for key production workers (see Table 9).

Table 18

Thus, one hour of labor of industrial workers corresponds to 40 rubles. overhead costs (1,200,000 / 30,000).

6. Development of a budget for stocks of finished products at the end of the reporting period in volume and value terms.

Stocks of finished goods in kind at the end of the reporting period at the stage of planning the activities of the enterprise are determined by its management.

In order to estimate stocks in monetary terms, it is necessary to calculate the planned unit cost. The cost of finished goods will depend on the method of calculation and inventory valuation chosen.

In accordance with the accounting policy of OJSC "Impulse", the method of accounting and calculating the full cost is applied, and the reserves are estimated using the FIFO method. It means that:

• · The cost of finished products includes both direct and indirect production and non-production costs;
• By the end of the reporting period, finished products manufactured in this reporting period(Table 19).

Table 19. Calculation of the cost of finished products in 2009

Table 20. Budget of stocks of materials and finished products

at the end of the planning period

Based on information on the cost of overhead costs (see Table 18) and data on stocks of materials and finished products in physical terms (see Tables 10 and 11), it is possible to draw up a budget for stocks at the end of the planning period.

To estimate stocks of materials, you need to know the amount of stocks in physical terms and the cost of a unit of stock. The amount of reserves in kind is determined in the plans of the management. In this case, the stocks of materials at the end of the period were determined as 8000 m of flannel and 2000 m of wool (see Table 8), their cost is 7 and 10 rubles, respectively. (see table 6).

In the same way, the amount of stocks of finished goods at the end of the coming period is determined (Table 20).

7. Development of a budget for the cost of sales.

At the heart of budgeting for products sold is the following calculation formula:

Cost of products sold = Stock of finished products at the beginning of the period + Cost of products produced for the planned period - Stock of finished products at the end of the period

In turn, the cost of production for the planned period is calculated as follows:

The cost of production for the planned period = Direct costs of materials in the planning period + Direct labor costs in the planning period + Overhead costs for the planning period

From the above formulas, it follows that by now there are all the data necessary to draw up a budget for the cost of goods sold (Table 21).

8. Development of the budget for administrative, marketing, commercial and other recurring costs (tab. 22-26).

Information for planning was information about the expected value of overhead costs (see Table 9).

All considered types of costs are constant, independent of production volumes.

9. Development of a profit and loss plan.

The preparation of the operating budget ends with the preparation of a profit and loss plan (Table 27).

Table 21. Sales cost budget

Table 22. Budget of production costs associated with design and modeling, thousand rubles.

Table 23. Budget of marketing expenses, thousand rubles.

Table 24. Budget of commercial expenses, thousand rubles.

Table 25. Budget of the customer service department, thousand rubles.

Table 26. Budget of administrative expenses, thousand rubles.

Table 27. Profit and loss forecast

After appropriate adjustments, taxable profit is expected to be RUB 808,566.7 and income tax to

808 566,7 * 24% = 194056 rubles.

thesis

1.3 Types of budgets in the organization

There are many types of budgets, applied depending on the structure and size of the organization, distribution of powers, characteristics of activities, etc.

The two main distinct types of budget are bottom-up and top-down budgets. The first option provides for the collection and selection of budget information from executors to lower-level managers and then to the company's management. With this approach, a lot of effort and time, as a rule, is spent on agreeing the budgets of individual structural units. In addition, quite often the indicators presented “from below” are strongly changed by managers during the budget approval process, which, if the decision is unreasonable or insufficient reasoning, can cause a negative reaction from subordinates. In the future, this situation often leads to a decrease in trust and attention to the budget process on the part of lower-level managers. This type of budgeting is widespread in Russia. According to experts, the reason for this situation is both the uncertainty of the prospects for the development of the market as a whole, and the reluctance of the management to engage in planning.

A top-down budget requires the management of the company to have a clear understanding of the main features of the organization and the ability to form a realistic forecast, at least for the period under review. This approach ensures consistency in the budgets of individual departments and allows you to set benchmarks for sales, expenses, and more. to assess the effectiveness of the responsibility centers. Top-down budgeting is preferred by most experts. However, in practice, as a rule, mixed budgeting options are used, containing the features of both approaches.

There are also other types of budgets. Line-item budgets provide for a strict limit on the amount for each separate item of expenditure without the possibility of transferring to another item. That is, if a particular department is scheduled to spend no more than $ 5,000 on advertising, they will not be given more, even if the department saved $ 15,000 on business trips. In Western practice, this approach is widely used in government agencies, but it is often used in commercial organizations to provide tighter control and limit the powers of lower and middle managers.

Expiring budgets imply a budgeting system in which the balance of funds not spent at the end of the period is not carried over to the next period. This type of budget is used in most organizations, as it allows you to more accurately control the activities of managers and the consumption of company resources, suppressing "cumulative" trends. To the disadvantages this method budgeting experts attribute the unevenness of spending budget funds, when at the end of the period managers begin to urgently spend different ways the balance of funds, fearing that in case of "under-spending" the budget for the next period will be cut by the corresponding amount. In addition, at the end of the period, quite a lot of effort is spent on inventory and reporting.

A budget is flexible, all items of which are dependent on some indicator, for example, on the volume of production or sales. In a static budget, the numbers are independent of the parameters characterizing the volume of production or sales.

A zero-level budget is a budget that is rebuilt each time from scratch. In contrast, a succession budget has a kind of template, into which, with the next budgeting, adjustments are only made to reflect the current changes in comparison with the established process. Successive budgeting greatly reduces the amount of effort and time spent on the budgeting process. However, it also has rather serious drawbacks, the main one of which is the danger of the formation of "stagnant areas" stretching from the past without changes, which could be revised and optimized when budgeting "from scratch".

The emphasis may not be on the types of budgets, but on different methods their construction - budgeting strategies.

Organizations can use:

Additional budgeting, when the new year's budget is based on the budget set for the previous period plus / minus an adjustment amount for expected changes. It is very popular in developed countries method in organizations that do not violate the established templates for working with their branches or departments;

Zero Budgeting: Planning a department resource for a given period starts with a zero resource budget and then creates a detailed top-down budget outline with priorities justifying its resource requirements. For operational purposes, a rather laborious method, it is productive to use it for a period of three years or more, with a breakdown by years, with the use of additional budgeting, the benefits include the fact that each department reviews the elements of its activities, sets goals and justifies its resource requirements on a regular basis ... Most commonly used by public sector enterprises;

Program budgeting: a unit of budgetary activity is conducted not through branches or departments, but through programs (for products, projects or campaigns);

Marketing Verification Budgeting: Service branches are price offers, which are compared with offers from external suppliers. If the branches win, their application forms the budget for the next year. This method has the disadvantage that a state of uncertainty and anxiety among staff can arise.

Thus, there are no uniform standards and forms for budgeting. Each company chooses the most appropriate method for drawing up its budget and, when choosing, proceeds from the goals set, business practices adopted by the company, philosophy, organizational structure, functioning of the enterprise planning and control system.

From the point of view of the sequence of preparation of documents for drawing up the main budget, there are two components of budgeting:

1. Preparation of the operating budget;

2. Preparation of a financial budget.

The main budget, or the main one, is a kind of connecting link that unites various management plans, and, first of all, marketing and production plans. The core budget is the financial, quantified expression of the marketing and production plans required to achieve the goals set. It is a plan, a work plan coordinated across all departments for the organization as a whole, consisting of two main budgets - operational and financial. Let us briefly characterize the elements of these budgets.

The operational budget presents the operations planned for the budget period for each unit, by certain types activities and throughout the organization as a whole.

The operational budget includes the following budgets:

1.budget sales;

2. production budget;

3.budget of direct material costs,

4.budget production stocks

5. budget for direct labor costs;

6. budget of commercial expenses;

7. budget of general production costs;

8. budget for administrative expenses;

9. forecast of the income statement.

The financial budget is understood as the totality financial plans, which reflect the sources of funds and the planned directions of their use. The financial budget consists of:

1. budget of funds;

2. the capital expenditure budget;

3. forecast balance.

When preparing the operational budget, first of all, start from the sales budget, since many elements of the main budget depend on the sales volume. The sales budget is determined by top management based on research marketing department... The specialists of this department find out what product, at what cost and in what quantity can be sold next year. The sales budget reflects monthly or quarterly sales in value and physical terms.

The production budget is understood as the production plan, which is expressed in physical units. With the help of the production budget, the number of services or goods that need to be produced is determined in order to put into practice the planned sales and required level stocks. According to the sales volume, the production volume forecast is made.

After the production volume is determined, a direct material cost budget is calculated, showing the total production needs and the required volume of purchases for the main materials, which depends on the expected consumption of materials in production and stocks in the warehouse.

The Inventory Budget contains the information needed to prepare the two final financial documents for the core budget:

1. forecast of the profit and loss statement - in terms of preparing data on the production cost of goods sold;

2. balance forecast - in terms of preparing data on the state of standardized working capital(raw materials and stocks of finished goods) finally the planned period. The volume of work in progress is determined based on the technological features of the manufacture of products.

The production budget reflects the costs of the company for the remuneration of the main production personnel, with its help, the required working time in hours is determined, which is required to fulfill the planned volume of production.

The business expenses budget contains information about the expenses that the organization plans for the budget period. These costs may be related to the sale of products, the volume of which was planned (transportation costs, advertising costs, commissions, etc.). In addition, the costs of transportation, warehousing, packaging, storage and insurance of products are highlighted.

The budget for general production costs reflects all costs that are associated with the production of goods or services, except for the cost of labor and materials. In this budget, a constant (planned based on the needs of production) and a variable (as a standard) components are allocated.

The budget for administrative expenses contains information about the operating expenses that are planned to support the life of the company for the budget period. These costs are not related to the sale of goods or services and are permanent. The administrative expenses budget is the last preliminary document before the income statement is drawn up.

All of the above budgets are preliminary, since on their basis a document such as a profit and loss statement is developed, the preparation of which is the last step in the preparation process * operational budget... The purpose of this report, which is also called the budget of revenues and expenses, is to show the ratio of all revenues from sales (for actually shipped products and / or services rendered) in the planning period with all types of expenses that the organization plans to incur in the same period. The main meaning of the budget of income and expenses is to show the management of the organization the effectiveness of its economic activities in the coming period.

The capital budget is an important support budget that shows the amount of financial resources that management allocates during the budget period to start a new business or business plan. This document reflects how capital expenditures are allocated by budget period and object of expenditure.

A cash flow budget is a cash flow plan (cash desk and checking account). It reflects all the planned use of funds and projected income for the budget period. This budget is one of the most important budgets for an organization. Based on the cash flow budget, you can prepare a forecast balance - a budget that reflects the forecast ratio of assets and liabilities of the company in accordance with the existing structure of assets and liabilities and its change in the process of implementing other budgets.

Thus, distinguish different kinds budgets depending on their content and purpose. All budgets are closely related to each other.

Conclusions for chapter 1

1. A budget is a quantitative plan in monetary terms, prepared and adopted before a certain period, usually showing the planned amount of income that must be achieved and / or expenses that must be reduced during this period, and capital that must be raised for achieving this goal.

2. Budgeting is the process of forming and executing the organization's budget, which includes the stages of development and consideration of budget projects, approval of the most acceptable of them in the form of a document containing quantitative indicators, in accordance with which the formation and distribution of funds and their efficient use to ensure the solution of problems and the performance of the functions of an economic entity.

3. The main meaning of budgeting comes down to increasing the financial and economic efficiency and financial stability of the enterprise by coordinating the efforts of all departments to achieve the final, quantitatively defined result.

4. There are many types of budgets, applied depending on the structure and size of the organization, distribution of powers, characteristics of activities, etc .: budgets, built on the principles of "bottom up" and "top down"; line-item budgets; expiring budgets; flexible and static budgets; zero and succession budgets; additional and zero budgeting; program budgeting and budgeting with marketing check

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The decision to implement budgeting depends on the long-term plans of the company. If it intends to grow consistently, then the implementation of this program involves the passage of a number of stages. Budgets allow you to predict how the situation will develop at one stage or another. Unlike business planning, which provides a fundamental answer to the question of the prospects of a new project, budgeting helps to assess how, where and when available resources should be used in order to increase the overall efficiency of the company.

Technical subtleties

Budgets are prepared for the year ahead with a breakdown by month. Preparation of draft budgets should begin two to three months before their entry into force.

In most cases, the work begins with the formation of a sales budget, which reflects how much products a company can sell and at what price. Typically, the source data is taken from the business plan. Here it should be borne in mind that in 90% of business plans overestimated figures are indicated. Therefore, it is necessary to transfer them to the budget very carefully, soberly analyzing the market opportunities of the company.

Some executives budget revenue “at the minimum” and expenses “at the maximum”. This approach has a right to exist. But nevertheless, we must strive to ensure that the budget reflects real, and not underestimated figures. Suppose that the company has every opportunity to earn $ 100 thousand, and only $ 70 thousand is included in the budget. Surely such a budget will be executed. But does the firm need it? After all, knowing that the targets are easily achievable, workers reduce the efficiency of their work and do not strive for higher goals.

But what to do when the future is in a fog and no one will say for sure how many products the company sells during the year? In this case, the sales budget is drawn up in three versions - "pessimistic", "optimal" and "optimistic". The first takes into account that the company will be able to sell, say, 1000 units of production, the second is focused on 1500, the third - on 2000 units.

It is very convenient to operate with such a flexible budget. If the situation changes, you don't have to redraw all plans and puzzle over what to do now. The corresponding version of the budget comes into force, from which specific management actions follow: expanding staff, attracting loans, purchasing additional equipment, etc.

After you have completed your sales budget, you can move on to the cost budget.

If the company follows the path of drawing up "flexible" budgets, all costs must necessarily be divided into fixed and variable.

Fixed costs do not depend on how much product is produced or sold. Their list includes rent for premises, remuneration of management personnel, depreciation of equipment, maintenance of repair services and service departments, etc.

Variable costs increase in proportion to the volume of products manufactured or sold. Knowing the norms of costs per unit of manufactured or sold products, it is easy to calculate the amount of costs for different scenarios of the development of the situation.

If the company is in manufacturing, the sales budget is closely related to the production budget. Let's say it is assumed that you can sell 1,500 units of a product in the coming year. But the company's production capacity will only allow it to produce 800 units. Then it is necessary to calculate whether it is advisable to expand production: is there any point in purchasing new equipment and attracting additional labor?

After budgeting for sales and costs, an inventory budget is prepared. He answers the questions of how many raw materials and goods are needed for the normal operation of the enterprise and how much is planned to be spent on their purchase.

Then the labor budget is formed. It is based on the forecast of the number of employees who will work in the company over the next year, and the wage bill.

Finally, there is an overhead budget. These include administrative and management costs (costs associated with ensuring the activities of top management, payment of rent for premises, business needs, the services of consultants, lawyers, etc.) and commercial costs (for advertising, marketing, product promotion on the market and its delivery to the consumer, ensuring the activities of the sales service).

How do I manage my expenses?

So that budgeting is not formal, and forecasts come true in practice, it is important to correctly determine the possible income and expenditure rates. How to do it?

The easiest way to plan your expenses is to use the industry average profit as a basis. Further, knowing how much you can earn over the next year, it is easy to determine the standardized total cost.

Then it should be categorized into separate items.

In some cases, it is objectively necessary to exceed the planned costs. Let's say, if a certain type of product "went" unexpectedly well at an enterprise and it is urgent to buy additional raw materials. However, does the company have funds for this? And if so, how much? To answer these questions, a firm should evaluate financial resources(own or borrowed) and determine the cost limit for the corresponding item - the financial bar that does not allow you to plan expenses above this level.

The financial side of the process

All the budgets mentioned above reflect the technological processes taking place at the enterprise. These are called operating budgets. But besides this, budgets are needed that show the financial side of the firm's activities. This is important in order to plan the flow of funds at her disposal.

Suppose a business sold 100 units in January for which it will receive payments in installments over the next two months. Thus, looking into the sales budget, it will be impossible to find out how much "live" money actually appeared in the cash desk of the enterprise in January. The same thing happens with expenses: payment for purchased goods can be made in installments, and salaries can be paid twice a month.

Therefore, in practice, for each of the listed operating budgets, it is necessary to draw up schedules for the receipt or expenditure of money. And by combining them into a single whole, we get a cash flow budget. It is the main financial budget for most businesses. Thanks to him, you can see if the company has "real" money to pay current costs at any given time. And also predict how much money and when he may not have enough.

The next financial budget is an income and expense budget that shows how much profit the company will make. It uses data from operating budgets. It is important not to confuse the sales proceeds shown in this budget with the cash receipts for the products supplied (which are reflected in the cash flow budget). In the budget of income and expenses, in fact, a forecast of the cost of the shipped products is given in accordance with the forecast of its sales.

And finally, the third financial budget is the balance of payments. It is similar to a balance sheet and follows its structure. This budget allows you to assess the structure of assets and liabilities of the enterprise and calculate financial ratios- liquidity ratios, solvency ratios, profitability ratios, etc. (the methodology for calculating them can be found in the issue of "SB" for June 2003). Unlike the balance sheet, which is compiled quarterly, this budget is compiled once a month. This approach allows you to more quickly respond to changes in the financial condition of the enterprise and manage it more efficiently.

If the company attracts investments or takes out loans, investment or credit plans are formed separately. After all the necessary operating and financial budgets have been prepared, they are combined into a single enterprise master budget. It allows you to see the whole picture of the company's activities. Ideally, if using a similar technology, such budgets will also be drawn up for each separate structural unit, line of business of the company. This will simplify the acceptance procedure. management decisions managers who supervise them.

Do you need to dive into details?

The depth of study and the degree of detail of a particular budget depend on the type of activity of the company and the importance of certain issues for it. For example, a company has a well-established market share and / or produces specialized products for a narrow range of customers. It cannot significantly increase sales: the market for its products is limited. Then, when budgeting, special attention should be paid to cost optimization.

All costs can be roughly divided into three groups. The first group includes those whose share is about 75% of the total costs of the enterprise. Usually these are just a few cost items, which in the so-called ABC analysis are referred to as group "A". To the second - "B" - those that occupy about 20% (about a dozen or a little more items), and to the third - "C" - 5% (several dozen or less cost items). It makes no sense to draw up a detailed budget for the third group of expenses - for example, how many stationery and at what price will be purchased, since this practically does not affect the value of the cost of goods sold by the company. Detailed planning is important primarily in relation to the first and, partially, the second group of costs - those that have the most noticeable impact on the cost of production.

Another situation arises when a company constantly incurs the same costs. In this case, it is worth focusing your efforts on preparing a sales budget.

Most Russian companies many objectively required budgets today they are either not compiled at all, or are formed in a simplified form. As a result, business leaders are at increased risk of missing a critical trend. Therefore, it is better to spend time preparing and analyzing the execution of several budgets, than then puzzle over how to get out of the financial downturn.

Top or Bottom?

In some companies, draft budgets are drawn up by the heads of grassroots divisions and then approved by top managers. In others, budget assignments come from top to bottom. There is a third option, when both the heads of departments and the top management of the company are directly involved in creating the budget.

From an economic point of view, none of these options have absolute advantages. Each company chooses the model that suits it best.

For example, if top management is well acquainted with all business processes, these processes are well-oiled and transparent, then an authoritarian "top-down" model is quite acceptable.

If the "top" have little idea of ​​the specifics of specific production processes, then it is better to give the opportunity to draw up a budget for the heads of departments. This model works effectively in those enterprises where there is a strong tendency towards business decentralization. For example, in holdings, which include several firms that are independent from each other and have specific features of their activities. Each of them draws up their own budget, while senior management does not go into details. He is only interested in the profit that the firm plans to earn.

The counter system of preparing budgets is good for those companies that have an extensive structure and where there are complex economic ties. In such cases, it is difficult for top management to keep track of everything that happens "below". Therefore, a certain amount of authority for preparing the budget is delegated "down". But at the same time, top management prepares its proposals. And then the options are compared, and the golden mean is found by joint efforts. As a result, business units receive realistic budget targets. And the leaders of the company get a mechanism that allows them to implement the chosen strategy.

Give me a reserve!

Another common situation: top management severely limits the amount of expenses on individual items, and the head of the department believes that he will not "fit" into such a budget. How can this conflict be resolved? Finding a compromise will allow the allocation of a reserve of expenses in the budget. As a rule, its value is 20% of the total costs. If necessary, this money can be used for those purposes that the head of the department considers important. But each time, in order to use the money from the reserve, he will have to justify the expediency of these expenses.

As a result, the reserve is never fully exhausted. Both sides benefit. Top managers get the opportunity to minimize costs, and the bottom-line manager knows that in case of urgent need he can count on additional funding.

Who supports whom?

In the process of budgeting, leaders of companies in several types of businesses have to solve one difficult problem: how to distribute corporate expenses among different departments? These costs include, for example, the costs of maintaining the security service, maintenance services, the secretariat and, finally, the management itself. At first glance, the obvious solution is to distribute this amount equally among all departments. But this is not the best way out. After all, the profit that different divisions bring can be different. For example, one of them makes several hundred thousand dollars a year. And the second is only twenty thousand. What happens if you hang on them the same shares of general corporate expenses, for example, in the amount of $ 10,000? The first unit will easily withstand this load, and the second will be absolutely unprofitable!

It is more correct to distribute total costs between departments using individual coefficients specially calculated for each of them. Thus, the total costs can be allocated depending on the share of the costs of departments in the total total costs of the company. Let's say the costs of a large division account for 80% of the company's total costs. Then 80% of the general corporate expenses are "written off" to it. However, you can determine this amount in other ways - focusing on the share of the unit in the payroll or even in the revenue of the entire enterprise.

Allocation of general corporate expenses is a rather laborious procedure. Therefore, not all enterprises use it. But you still need to do this. This approach allows you to more accurately determine how much the maintenance of a particular unit costs and what real profit it brings.

According to plan and in fact

Budgeting is not only a planning tool. It is also a tool that allows you to assess how successfully individual projects are being implemented and the business of the entire company is developing. It is enough to compare the planned and actual indicators of the business - and the picture is in full view.

The so-called plan-fact analysis can be carried out on a monthly basis both exclusively for financial budgets and for individual operating budgets. Its purpose is to determine the cause of the deviation.

If income plans are overfulfilled, and expenses remain within the limits, there is no cause for concern. And if the discrepancy between the figures in reverse side? What "gap" should alert you?

It all depends on the scope of the business, the size of the enterprise and its performance over the past years. For example, a trading company operates in a highly competitive market where the rate of return is only 3-5%. For her, the deviation of purchase prices from the planned level in the inventory budget by 2-3% means the loss of most of the profit and poses a threat to existence. Another thing is when the profit rate is 20-30% and the suppliers have increased the price for the necessary raw materials for the production of the product by 5%. In this case, the company's profit will be lower, but the situation will not become critical.

And the last thing: it is very important to establish a system of prompt receipt of all the necessary information. Otherwise, it will be too late to take measures to remedy the situation. Therefore, an enterprise that has seriously undertaken the introduction of budgeting will have to work on improving the accounting of all business transactions that it performs.

Why budgeting is seen as a tool financial planning? What is Performance Based Proactive Budgeting? Who offers budgeting automation using the CFD?

Every businessman periodically asks himself or his employees an urgent question: "Where does the company's money go?" Rhetoric aside, this question can be attributed to the cornerstones of business.

It will not be possible to answer it “at a swoop”. Understand how the company's income is distributed, professional budgeting will help... This process not only makes financial activities the company is transparent and understandable, but also helps to optimize costs and increase profits.

About, how to organize budgeting and what specific tasks it performs, I, Denis Kuderin, an expert on economic issues, will tell you in this article.

Be sure to read to the end - at the end you will find an overview of firms that will help you adjust your company's budget in the most efficient way.

1. What is budgeting

In the beginning there was a budget. And already based on its size and goals, everything else appeared. Everything has a budget, even the article you are currently reading. And of course, a commercial enterprise has a budget.

Budget- This is a scheme of income and expenses of a certain object, established for a certain period. The family, government, enterprises and any other organizations have a budget.

- planning, development and distribution of the budget. This is the integral and most important part. financial management, the purpose of which is to distribute the resources of an economic entity in time.

Simply put, budgeting allows you to understand how and what will the company's funds be spent on within a year or other time period.

Special departments of the company are engaged in budgeting. They are called Financial Responsibility Centers(Central Federal District). Such structures allow you to achieve your goals through the most optimal and efficient distribution resources.

In the specialized literature, the term is often found proactive budgeting... It should be understood as the distribution of public finances for local needs of a region, city, a specific subject of federal or municipal significance at the initiative of ordinary citizens.

Economists view budgeting in a broad and a narrow sense. In the first case, as a methodology, in the second, as a process.

The budgeting methodology includes the principles and rationale for the entity's costs. The budgeting process is the development of stages, procedures and methods of allocating funds, as well as the subsequent control of the entire system of the enterprise budget.

Budgeting goals:

• planning and approval of management decisions based on the assessment and comparison of the planned and actual financial results of the enterprise;
• grade financial condition companies in the present and future;
• strengthening the financial discipline of the enterprise;
• effective use of the resource potential of the organization;
• optimization of investment activities;
• assessment of the commercial viability of new projects.

The CFD forecast financial results and determine goals, set budget limits for individual divisions of the company, control the financial status of the company, and create an effective management system.

Enterprises have several centers of financial responsibility - for example, a purchasing department, a sales department, a warehouse, a marketing department. Each department has different functions: some are responsible for revenues, others for expenses.

In smaller companies, budgeting comes down to simple income and expense budgeting. If the team is small, the turnover is appropriate, and the company itself sells one type of product, too detailed budgeting will only slow down the production process.

But as the enterprise develops, it becomes more complicated and cash flow management, profit becomes less predictable, there is an urgent need for competent budget allocation and cost control. Usually this moment comes when the number of staff reaches 50 - 100 people.

By the way, our magazine "HeatherBober" also has its own production budget!

A well-organized system gives the management the opportunity to soberly assess how things are going in each division of the company and in the organization as a whole, how the attracted investments are being mastered, where there are financially weak places.

Watch the video that will answer the question "why do you need budgeting?"

2. What tasks does budgeting solve - 5 main tasks

The fundamental task of budgeting is taking into account and thinking over the financial decisions of the company. Analysis of the current state allows you to make more effective decisions in the future, and comparison of planned and actual results reveals the strengths and weaknesses of the business.

Experts highlight five local budgeting tasks... Let's deal with them.

Task 1. Providing ongoing planning

First of all, budgeting is a tool for current planning. With its help, specialists are looking for the most rational and promising ways of using available resources, taking into account market realities.

Successful activity is impossible without planning. But the plan should be professional, detailed, taking into account the specific goals of the business. The plan is the basis for competent and effective management decisions.

Budget planning - an assessment of the goals of the enterprise in terms of the necessary and available resources. In other words, the plan should show how much money the company will need to run the business successfully.

There are several types of planning:

Comprehensive financial accounting should ideally cover both the long-term and the immediate goals of the enterprise.

Task 2. Justification of the costs of the organization

Within the framework of this task, the question asked at the very beginning of the article is being solved: “ Where does the company's money go?»Each item of expenses of the enterprise must be justified and appropriate... Otherwise, the company will simply will fly into the pipe.

Real life example

The personnel manager of a large printing house, in which I once worked, suggested introducing in the production workshop uniform uniform for all employees... We ordered 150 suits in a sewing workshop, and handed out uniforms to the workers.

For a couple of months they regularly wore overalls and jackets, then switched to more comfortable clothes, in which they worked before. The new form turned out to be uncomfortable and impractical... Wherein experienced staff the companies warned in advance that shorts and a T-shirt are more comfortable than overalls in working conditions.

The cost of tailoring workwear turned out to be money thrown into the wind

The cost of purchasing a form in this case is an example of useless waste that reduces the profit of the enterprise.

Task 3. Creation of a basis for the assessment and control of the organization's plans

Budgeting allows you to create a basis for control and planning. Via financial accounting it is easy to understand which projects were successful and which only bring losses. And make the necessary adjustments to the work of the enterprise.

Task 4. Improving the efficiency of the organization

Professional budgeting increases the return on work, reduces unnecessary expenses and allows you to develop the most profitable areas of activity. It is advisable that employees are aware of the financial affairs and plans of the company.

It is important to properly establish the communication environment in the enterprise in order to control the upstream and downstream information flows. This means that high-level specialists must transfer information to line managers, and those to lower organizational levels. Feedback should also be established.

Task 5. Identification of risks and reduction of their level

Budgeting identifies business risks, allows them to be minimized or eliminated completely. The fulfillment of this task is especially important in the field of company investments. You need to know which areas are worth developing, and which are too risky for the budget.

3. How the budgeting system is set up with the help of the Central Federal District - 6 main stages

It's time to get to practice. Let's consider how to implement a budgeting system through the centers of financial responsibility of the company.

The algorithm presented below is not a rigid scheme. The budgeting statement must be consistent with the specifics of the company, its scale and resources.

Stage 1. Development of the basic principles of the company's budgeting system

First you need to develop principles of budgeting or use ready-made solutions similar companies. And for this you need to create an effective organizational structure of the company.

How to do it:

• examine the documentation, mechanisms of interaction between departments, if necessary, eliminate deficiencies;
• revise current standards work with financial flows and change them in accordance with new requirements;
• purchase (or develop) special software and install it;
• train employees the basics of competent budgeting.

The preliminary project is coordinated with the management of the company.

Stage 2. Development of the financial structure of the company

It is necessary to develop a model that will help control income and expenses. It is also necessary to appoint responsible persons for the implementation of this model in practice.

In accordance with the types of income and expenses, the CFD is formed - centers of profit, investment, costs, etc. These centers are combined into a single structure that helps them interact with each other.

Stage 3. Creation of the budget model of the company

This stage involves the development of a methodology, adjustments and analysis of the company's budgets. The types of budgets that need to be maintained by the company are determined (for example - external, internal, intersectoral, sales budget, production budget). Is being developed general scheme formation of the consolidated budget of the organization.

Stage 4. Development of the regulatory framework governing budgeting in the company

An approximate list of required documents:

• regulation on the financial structure of the company;
• regulations on the Central Federal District;
• provision on accounting policy;
• regulations on the budgets of the enterprise.

If there are difficulties with the preparation of documentation, there is an option to delegate this part of the work to professional companies. In the next section, you will find an overview of firms that will help not only with paperwork, but also with the introduction of budgeting into practice.

Stage 5. Automation of the budgeting system

Automation is a multilevel process that also requires the participation of professional performers. In particular, this includes installing new software on the company's internal network.

Automating the budgeting process makes work easier

The more successful the automation is, the easier it is to apply budgeting principles in practice.

Stage 6. Carrying out organizational changes due to the introduction of the budgeting system

The introduction of budgeting requires organizational changes in the structure of the company. The financial management apparatus must have access to all areas of the enterprise. Heads of the Central Federal District and persons responsible for budgeting are appointed.

4. Professional assistance in setting up a budgeting system - an overview of the TOP-3 companies for the provision of services

If the company has been on the market for a short time, if neither managers nor employees have experience in budgeting for large enterprise, it is better not to implement the system yourself, at the risk of making mistakes, but invite professional financial practitioners.

The review will help you choose the best of the best in the field.

1) First BIT

The company was founded in 1997 by young and energetic specialists in economics, applied mathematics and physics. They determined the direction of the organization's activities - business development based on the latest IT technologies. Today the company has 80 offices in Russia, Kazakhstan, Ukraine and Canada.

Each client "First BIT" is ready to offer solutions of its own design for the full automation of the enterprise in all directions, including budgeting, financial, etc. As part of budget optimization, the company is ready to draw up a plan, develop a financial control structure, and make a financial forecast.

The 1C-Rarus company operates throughout Russia. Before ordering services from this company, select your region and use the primary free consultation- call the manager and discuss your problem with him.

The organization offers:

• development of up-to-date procedures and regulations of the budgetary process;
• drawing up forms of budgets;
• design of financial indicators;
• training of the customer's employees in automated budgeting skills.

The optimal budget model, created on the basis of "1C", will automate the budget management process and introduce it into the daily work of the company.

The priority area of ​​activity is the automation of the company's budgeting. SoftProm introduces into practice universal products for managing the finances of a customer organization. Example: the universal UPE platform - a set of flexible interfaces, a report generator and a logical designer that allows you to create applied solutions in the field of budgeting, etc.

5. What are the difficulties of budgeting with the help of the Central Federal District - an overview of the main difficulties

Budgeting based on the CFD is a troublesome and complex undertaking. You can't make a good budget in one day. This is a long-term process that requires daily attention and the participation of qualified employees.

To avoid difficulties will help to attract third-party specialists on an ongoing basis, who will audit the budget system at a specified frequency. The second option is to undergo vocational training.

The main difficulties in budgeting.

1) Understatement of income

The financial resources of the company are a limited amount, but if you constantly underestimate the income, there will be a discrepancy in the accounting statements.

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