Creation and approval of the operating budget is the main stage of financial planning at the end of the reporting period (month, quarter, year). Employees financial department analyze the volume of upcoming transactions in the company, take into account the estimated costs and revenues, fixed costs, inflation, exchange rate differences (if the company works with foreign exchange transactions).

Stages of building an operating budget in a company

Budgeting in a company is a multi-stage process; building an operational plan also consists of several stages.

• Forecasting sales volume for the next reporting period. The company's variable costs depend on the volume of manufactured and sold products, so financiers build a forecast taking into account the profits of previous periods and the current market situation. The financial model for the operating budget should include as many external factors as possible (inflation rate, refinancing rate, current exchange rate) in order to provide for the required amount of expenses.
• Create budgets to cover administrative and related costs. Depending on the volume of sales, formed variable costs(quantity of purchased raw materials and materials, fund wages for employee bonuses, overtime pay and extra shifts). Administrative expenses (rent, salaries of employees) remain unchanged.
• Create budgets to cover basic production costs. Funds are allocated for the purchase of raw materials and materials, maintenance and repair of production facilities, and the introduction of new technologies. Production costs are a central part of the operating budget in manufacturing, innovative and knowledge-intensive companies. Trading houses, service companies and intermediaries do not plan the production budget, replacing it with operating expenses.
• Forecasting the balance of the enterprise for the future period. Employees of the production and financial department build models for the development of the situation, draw up a preliminary balance sheet (sometimes a profit and loss statement). These data allow us to calculate indicators financial stability companies, predict business performance, lay funds to cover expected additional costs.

The construction of the operating budget is based on the statistics of previous periods and economic modeling. Depending on the economic sector, the document is fixed for the next financial period or is regularly reviewed. For example, venture capital firms producing innovative products review their operating budget every month. Trading houses accept a single document for the entire coming year.

Methods for building an operating budget in a company

Small items of the operating budget are planned based on data from previous periods, operating expenses are calculated using one of the methods.

• CVP analysis - comparison of current costs, planned output and profit. The method is used in small manufacturing plants or new companies. These CVP models allow you to calculate the break-even point, estimate the volume of production and plan the sales structure.
• EOQ analysis - calculation of operating costs based on the optimal batch for delivery. The method is used in large companies that work with dealer networks. The cost of selling one batch of goods is multiplied by the volume of supplies.
• EPR analysis - calculation of costs based on the cost of a consignment with minimal costs (modification of EOQ analysis). The method is used in companies that are forced to store large consignments in owned warehouses. The cost of issuing and storing one batch is multiplied by the estimated volume of supplies.

Operating budget includes income and expenditure budget , the basis for the development of which are the following budgets: the budget for production, the budget for the sale of products, other income, the cost of materials and energy, the budget for wages, depreciation, general and general production expenses, the budget for tax expenses (depending on the tax, it may be included in general economic expenses).

The purpose of operating budgets is to plan current activities. There are the following types of operating budgets.

1. Sales budget. Depending on the production capacity, goals set for the future, sales markets, the planned sales volume is calculated based on the forecasted production quantity and planned prices. Calculations are made by types of products. Drawing up this type of budget is mandatory for all enterprises. Its forms at different enterprises may differ from each other depending on the specifics.

2. Production budget. The planned production volume is calculated. Based on the sales budget and balances finished products. The calculation of this type of budget is necessary for the formation production program.

3. The budget of direct costs of materials and raw materials. It is calculated on the basis of material consumption rates per unit of output, forecast data for the budget for the production of raw materials and materials leftovers in warehouses, and market prices. In this budget, the volume of purchases of material and technical resources is formed. Data is generated both in monetary and in-kind terms. This type of budget is typical for manufacturing and construction enterprises.

4. The budget of direct labor costs. Calculate the total cost of attracting labor resources. Initial data: production budget. The system of labor rationing is used.

5. Variable overhead budget. The calculation is based on overheads broken down by items: depreciation, electricity, insurance costs, etc.

6. The budget of stocks of raw materials, finished products. It is calculated on the basis of data on the balance of raw materials and materials in natural units, stocks of finished products, prices and cost. In organizations with a long production cycle, a work in progress budget may be prepared along with or instead of an inventory budget. In construction organizations, by analogy, a budget for construction in progress can also be drawn up.

7. Budget for management and commercial expenses. Here the predictive estimate of fixed costs is calculated. The composition of the articles depends on many factors, including the specifics of the enterprise.

8. The budget of the cost of goods sold. It is calculated on the basis of previous operating budgets based on the costing methodology approved by the enterprise.

Depending on the type of activity at the enterprise, certain types of budgets may dominate in value.

So, for example, on manufacturing plant the main cost calculation is the production budget, in trade enterprises - the sales budget. If the enterprise is engaged in several types of activities at the same time, then for each line of business it is necessary to choose its own operating budget, as well as determine the consolidation procedure for the compilation of data throughout the enterprise.

18. Budget, estimate and financing plan.

Budget is a plan that reflects the expected results and allocated resources in quantitative form. Represents a linked set of financial and/or in-kind economic indicators company activities. The budget describes the goals of the company in terms of the implementation of specific financial and operational structures.

An estimate is a calculation of forthcoming expenses and incomes, an approximate calculation of something. estimate, being static form of reporting, in practice ideal for planning permanent costs of the enterprise and drawing up a report on them, but for current calculation and adjustment of conditionally variable costs or direct operating expenses of the company, it is practically inapplicable. Reporting in the form estimates can also be used when forming the company's payment positions, in particular in relation to the priority of payments (especially at the time of a lack of liquidity), since estimate has the coloring of imperative (compulsory) payment

Funding Plan enterprise is compiled on the basis of the founder's financing plan, balance sheet plan, profit and loss account, as well as the current (less than annual) liquidity plan. It should show from what sources and in what form you will (or would like) to finance the enterprise or project. At the same time, it is necessary to distinguish between financing at the expense of the enterprise and external financing. Map out the actual funding and outline your funding goals and intentions. Financing at the expense of the company's funds includes: redistribution of property (active settlement), for example, the sale of fixed assets (land, buildings, equipment, etc.) that are not needed, the reduction of inventory, sale with subsequent leasing.

In addition, internal financing includes profit hoarding, the creation of hidden reserves, deductions to reserve funds, and so on.

External financing consists of the following components: financing through contributions and equity participation by the founders contributing new capital or attracting new founders, such as venture capital funds.

External financing also includes various forms of loan financing: contract loans, loans for working capital financing, supplier loans (by determining the timing of payments on purchases), commission agreements (consignment warehouses), advance payments from buyers, long-term loans for financing fixed assets, equity financing participation or projects, as well as financing through leasing, factoring and subsidies.

When describing external financing, the attracted financial resources should be divided into short-term, medium-term and long-term ones. There is a general rule that property values ​​intended for long-term use (fixed assets) should be financed by attracting long-term loans in order to avoid liquidity crises

19. Financial budgets of the enterprise.

There are three types of financial budgets.

1. Budget formation and distribution financial resources(forecast balance). It is a forecast of balances for balance sheet items: accounts receivable, cash, inventories, non-current assets, accounts payable, etc. Each item is calculated using the standard formula: closing balance = opening balance + debit turnover - credit turnover. For active accounts - with a "+" sign, for passive accounts - with a "-" sign. The value of this type of budget is to determine the property and liabilities of the enterprise, and therefore solvency.

2. The budget of income and expenses (forecast profit and loss statement) is formed on the basis of calculations of forecast values ​​for the volume of sales of products, prime cost, administrative and commercial expenses, taxes, financial expenses (interest on loans and credits). Operating budgets serve as initial information. Tax payments are calculated by the average percentage. This budget is intended for planning the financial result, i.e. determining profitability.

3. Budget Money(projective cash flow statement) reflects the projected amount of expenses (based on data from operating budgets). With the help of it, the financial condition (solvency) of the enterprise is analyzed, that is, it is determined whether the company is able to pay off current and other obligations, purchase new equipment and machinery necessary for expanding production. The meaning of this type of budget is that often an enterprise needs to make expenses in several areas (for example, investments and payment of dividends), and therefore it is necessary to clearly understand the volume of expenses in order to analyze whether there is enough cash inflow to cover the outflow or whether it is necessary to attract additional funding. Some companies have investors or the possibility of obtaining a loan, due to which the financial budget deficit is covered. But this is not always possible (in the case of a low level of solvency of the enterprise), so one of the ways out is to analyze the significance of each budget item and identify the least important items that can be eliminated.

The purpose of the cash flow budget is to use this tool, on the one hand, to protect yourself from a situation of lack of money (which can have a very negative impact on the production process), and on the other hand, to determine the possibility of investing free cash in such a business, where can i get additional income. The cash flow budget determines what expenses the company expects in the future and from what sources these expenses will be paid.

The operating budget is the budget of an individual Financial Responsibility Center (CRC). The purpose of drawing up an operating budget is planning and accounting for the results of business operations that are carried out by the corresponding CFD. In fact, the operating budget is a tool for delegating the powers and responsibilities of each CFD according to financial indicators assigned to it.

For each CFD, one (and only one!) Operational budget is drawn up. The total number of operating budgets at the enterprise is equal to the number of FRCs formed in it. So, in this quantitative ratio, respectively, the possibility of establishing a connection between the financial and budgetary structures is already visible.

For various financial responsibility centers that are engaged in similar activities, the content and, accordingly, the names of the articles and their groups of operating budgets may be the same.

An example can be Operating budgets for the center of income and expenses.

1. Revenue Center Budget "Business A"

1.1. Realization of the main products.

1.2. Finished products.

2. The budget of the income center "Business B".

2.1.1. Realization of the main products.

2.1.2. Services.

3. Budget cost center "Commerce".

3.1. Business expenses.

3.1.2. Salary of sales managers.

3.1.3. Sales commissions.

3.1.4. Fare.

4. Budget cost center "Marketing".

4.1. Business expenses.

4.1.6.1 Internet promotions.

Functional budgets

The economic activity of an enterprise can be represented as a set of certain functions. In general, the list of these functions can be presented in the following way:

Sales;

Procurement;

Production;

Storage;

transportation;

Administration (management)

Financial activities;

Investment activities.

Articles of operating budgets, grouped on the basis of functional affiliation, form functional budgets. The purpose of compiling functional budgets is to determine the need for resources for various activities of the enterprise.

Each functional budget is compiled as a whole for the enterprise. So, the system of functional budgets of the enterprise forms its budgetary structure. Thus, Budget structure - is a system of functional budgets of an enterprise, in accordance with which there is a consistent planning and accounting of the results of its economic activity.

From the position of this definition, the core budgeting scheme certainly reflects the budget structure, since its blocks are nothing more than functional budgets.

A more detailed list of functional budgets, according to the above functions of the enterprise, can be considered as shown in Table. 5.6.

In table. 3.6 lists functional budgets at the top level. However, any of these budgets can be detailed in accordance with the needs of a particular enterprise. For example, if it makes sense for an enterprise to control not only production costs as a whole, but also their individual components, then Direct Manufacturing Cost Budget may in turn include Material budget, Energy budget, Depreciation budget etc.

Table 5.6

Example of a list of functional budgets

		Name of the budget
		sales budget
		Sales budget for own products
		Purchased Goods Sales Budget
		Fixed asset sales budget 03
		Sales budget for other activities
	The budget for the balance of finished products (GP) at the beginning of the period
	Budget for finished goods balances (FP) at the end of the period
	production budget
	Budget for work-in-progress (WP) balances at the beginning of the period
	Budget for work-in-progress (WP) balances at the end of the period
	Budget requirements for raw materials, materials, tools, etc.
	The budget of the balances of raw materials, materials, tools and others at the beginning of the period
	The budget of the balances of raw materials, materials, tools and others at the end of the period
	procurement budget
	The budget for the purchase of raw materials, materials, tools, etc.
	Goods Procurement Budget
	procurement budget
	The budget of goods balances at the beginning of the period
	The budget of goods balances at the end of the period
	Income budget for core activities
	Direct cost budget for core activities
	Direct Manufacturing Cost Budget
	Direct Selling Budget
	Overhead budget for core activities
	Manufacturing overhead budget
	Business overhead budget
	Administrative expenses budget
	Income budget for financial activities
	Financial Activity Expenses Budget
	Income budget for investment activities
	Income budget from other activities
	Budget for expenses for other activities

Budget type designations:

DV - income - expenses; RGK - cash flow; HB - naturally - cost.

If necessary, you can continue to drill down one more level when material cost budget detailed on raw material budget(including the main types are considered separately), Budget materials. The budget of components (again, highlighting the main types and (or) suppliers), etc.

On the basis of budget indicators, the final financial result is also formed: profit / loss or net cash flow (cash balance). The company can also create additional budgets- not to calculate the financial result, but to control functional areas in certain cuts. For example, if you want to manage payroll costs across your entire enterprise, payroll budget, which it is advisable to consider separately, in the context of production, commercial and other expenses. However, in any situation, one should take into account the relationship between operating and functional budgets; for trade, they are schematically presented in Fig. 5.1.

Rice. 5.1. Relationship between operating and functional budgets

Let us characterize the Consolidated (Final) budgets of the enterprise. Each functional budget belongs to one of three types of budgets.

1. In-kind - cost (Budget of goods, stocks and non-current assets).

2. Budget of income and expenses (BDR).

3. Cash flow budget (BDDS).

According to this classification, functional budgets are summarized throughout the enterprise and form the corresponding final budgets. So, Direct Production Cost Budget, Overhead Budget, Selling Cost Budget, etc. are grouped and together form a final income and expenditure budget (BDR), a Income budget for core activities, Payment budget for direct production costs, Budget for overhead expenses, Payment budget for commercial activities etc. - final Cash Flow Budget (BDBS).

Many enterprise operations affect all three of the resulting budgets. So, the sale of products will be displayed in the budget of goods, stocks and non-current assets as a shipment of finished products and, accordingly, basically, in the budget of income and expenses - as an accrual of income from sales, and when the buyer pays for this product in the cash flow budget (BDDS) - as cash receipts from sales. Consequently, the functional Sales Budget is compiled in the context of the movement of goods, income and money flow and, accordingly, takes part in the formation of all final budgets (Fig. 5.2).

Rice. 5.2 Relationship between functional sales budget and final budgets

Thus, the final budgets are necessary not only for planning financial results, but also for tracking "remote" and "side" effects of changing certain points in the strategy and tactics of the enterprise, as well as for reasonable adjustments to the budget as a whole. Let's consider them in more detail.

Income and Expenditure Budget (BDR) reflects the formation of the economic results of the enterprise. Its purpose is to manage economic results activities of the enterprise, that is, its profit and profitability. Under the economic results in this case we understand the result of the production and financial activities of the enterprise, reflecting the change in the value of the property of the enterprise. He shows:

Enterprise income - in total and (or) detailed according to one or another criterion (CFD, source of receipt, etc.);

The expenses of the enterprise in the total volume and (or) are detailed according to one or another criterion (CFD, direction of expenses, costing item, etc.);

The difference (i.e. profit or loss) between income and expenses for a given period.

Based on these data, using certain analysis tools (primarily factorial analysis of profits), you can:

Develop a planned volume and determine the value of each source of income in the total volume of both income and profit. Such information is necessary for the development of the company's marketing policy, its production program, and the like;

Identify cost items that it makes sense to influence in order to improve financial results (identify cost items that have savings reserves).

The format of the budget of income and expenses (sequence and grouping of items) must comply with the format adopted by the enterprise income statement (Statement of Comprehensive Income), since this correspondence will make it possible to qualitatively plan and take into account the entire process of forming the financial results of the enterprise (Table 5.7). To ensure comparability, it is convenient to use the same format. The results obtained according to the plan, or in fact, do not need to be regrouped, listed, or corrected.

Table B. 7

Scheme of formation of financial results

day off indicator	adjustment		result
	Action ("-" - subtraction, "+" - addition)	Name of indicator
Operating income		Direct production costs	margin
		Direct selling expenses
margin		Business overhead	Cost contribution
Coverage contribution		Enterprise overhead	Profit from operating activities
profit from basic activities		Income from financial activities	Profit before tax
		Financing expenses
		Other income
		other expenses
Profit before tax			Net profit
Net profit		Contributions to enterprise funds	Unallocated
	dividends

On the basis of a single format, it can be argued that the BDT - just like in the Statement of Financial Performance - involves sequential, step by step, deductions from the gross financial results (revenue, marginal income, etc.) of the relevant expense items. So, according to the results of such a deduction of expenses, financial results “cleared” from a certain part of the expenses are formed at each step. And if at the first stage marginal income is formed as the difference between total income and cost, then on the latter - we get net profit.

In some cases, it is advisable to enter additional lines " Financial results from financial activities" and "Financial result from other business operations", which will improve the management of their financial results.

Cash flow budget (CDBS) reflects the movement of funds (cash flows) for all types of bank accounts, cash desks and other places of storage of the enterprise's funds.

According to the direction, cash flows are divided into two types:

Receipts to the enterprise (cash receipts to the enterprise);

Payments by the enterprise (payments by the enterprise).

The difference between input cash flows (receipts) and output cash flows (payments) determines the net cash flow of the enterprise, which can be both positive when the company accumulates temporarily free cash, and negative when cash payments exceed income. There is a correspondence between receipts and incomes, as well as between payments and expenses. The formation of the majority of income and expenses is associated with the receipt and payment of funds. The level of detail of the BDDS and BDR articles should be the same. An example of the correspondence between articles BDDS and BDR is presented in Table. 5.8.

Table 5.8

Correspondence of articles BDDS and BDR

This correspondence provokes an equal sign between profit and net cash flow. However, even the beginning entrepreneur is aware that there are quite significant differences between them. The main reasons that cause differences between income and receipts or between costs and payments are:

1) differences in terms. Receipts in time may lag behind incomes, or may be ahead of them, in some cases they may coincide. The same thing happens with payments. They can be carried out synchronously with expenses, they can be ahead of them, or they can lag significantly behind - sometimes quite significantly;

2) differences in amounts. There are receipts that are not income and vice versa. An enterprise may receive income and not have receipts corresponding to these incomes. In relation to expenses / payments, there is a complete analogy: an enterprise can make expenses that do not require payments, and make payments that are not expenses from an accounting point of view.

Let's take a closer look at each discrepancy.

Differences in the lines in relation to income are as follows (Table 5.9).

Table 5.9

Line discrepancy with respect to income and receipts

Determining the relationship between BDT, BGRK and the balance sheet, it can be indicated that advance receipts form the company's accounts payable, and commercial (commodity) credit provided to customers - accounts receivable.

The difference in the lines in relation to expenses and payments is as follows (Table 5.10):

Table 5.10

Payment term in relation to expenses

In the balance sheet, advance payments are presented in accounts receivable, and commodity credit received from suppliers is accounts payable.

Disagreements in the amounts in relation to income are not so diverse: income from the main activity cannot be more than income. They can only be less due to losses associated with "bad faith" receivables. Consequently, in those enterprises where products (works, services) are sold exclusively for cash, receipts coincide with income both in terms and in volume. At enterprises that receive payment for products (works, services) in advance, the volume of income and receipts are the same, but receipts are formed earlier. At the same enterprises selling products mainly on terms of commercial(commodity) credit, receipts lag behind income both in terms and in amount. Nevertheless, as competition grows, commercial (commodity) credit will expand, and this type of income will become predominant.

The financial activity of an enterprise can generate receipts of funds that are not income, but are loans, as well as receipts that are not related to income, but are investments in the authorized capital of the enterprise and sponsorship (including budgetary).

Disagreements in amounts in relation to expenses are possible in both directions: as mentioned above, there are payments that are not expenses, and expenses that do not require payments. The main articles for which the EDV and BDDS differ from each other are given in Table. 5.11

Thus, BDDS is a mandatory tool for managing the cash flows of an enterprise. It is used to plan and analyze:

Volumes of specific payments and receipts;

Timing of payments and receipts of money;

Orientation of cash flows - receipts by sources, payments for their intended purpose;

Cash turnover for the period (with the required frequency), which is necessary to assess the need for additional financing;

The balance (balance) of funds on accounts for specific (control) dates.

All of the above allows you to manage the solvency of the enterprise, that is, its ability to repay obligations in a timely manner. This is achieved through the following measures:

Maintaining the required amount of funds on the account (for making all planned payments);

Table 5.11

Disagreements in articles between BDT and BDDS

Operating budgets

Operating budgets include the following.

Sales budget

shows monthly and quarterly sales volumes by types of products and for the company as a whole in natural and value terms during the budget period.

Production budget

reflects monthly and quarterly volumes of production (output) by types of products and for the company as a whole in physical terms, taking into account stocks of finished products at the beginning and at the end of the budget period.

Finished Goods Inventory Budget

contains information on stocks by type of product, for the company as a whole and for individual businesses in natural and value terms.

The budget of stocks of goods, raw materials and materials

(main materials and stocks of inventories - inventory) includes information on stocks by types of inventory for the company as a whole and for individual businesses in natural and cost terms.

Budget of direct material costs

(main materials and stocks of inventory items) contains information on the costs of raw materials and materials, purchased products and components per unit of finished products by type of product and for the company as a whole in natural and cost indicators, as well as information on stocks of basic materials in value terms at the beginning of the budget period.

Direct labor budget

reflects the cost of wages for the main production personnel during the budget period per unit of finished products by type of product and for the company as a whole in natural and cost terms, i.e. taking into account the cost of working time in man-hours and tariff rates.

Budget of direct production (operating) costs can be compiled when more accurate accounting of production (operational - for trading firms and service sector enterprises) costs that can be categorized as direct (variable) costs.

Budget for general production (general workshop) overhead costs shows the cost of wages for administrative, managerial, engineering and support personnel directly employed in this business (workshop, structural unit), rental payments, utility and travel expenses, current repair costs, the cost of low-value and wearing tools and other costs ( mainly general shop expenses) associated with the operation this business throughout the budget period.

Management budget

contains information on the cost of salaries of administrative, managerial, engineering and support personnel in the management apparatus of an enterprise or firm, rent payments, utility and travel expenses, maintenance costs, the cost of low-value and wearing tools and other (mainly corporate) expenses throughout the budget period.

Business expenses budget

The overhead budget contains

information about other business expenses, such as depreciation, loan interest, and other plant-wide expenses during the budget period.

The difference between the budget of general production overheads and the budgets of administrative and commercial expenses in terms of structure and set of items is insignificant, and their formats may coincide. The main difference is that in the first case, all costs can be calculated directly for a particular type of business (product, workshop, structural unit), and in the second case, the same costs can only be determined for the company as a whole.

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What is an Operating Budget | operating budget

Operating budget — English operating budget, are carefully detailed budgets that are prepared for the purpose of managing current expenses.

They differ from other types of budgeting strategies, which may include items that take into account future operations or additional costs that will be incurred outside the core budget. The operating budget should not only guarantee the availability of funds that are necessary for the continuous functioning of the business, but also distribute them in the most efficient way.

Almost every organization designs and executes an operating budget. Regardless of the size of the company, this type of budgeting helps determine how much revenue you need to generate in order to continue operating at the same level.

Non-profit organizations also prepare an annual budget that reflects the expected amount of donations and other sources of income that will be used to cover expenses. An operating budget can even be prepared by households, as it makes it easier to determine the types and amounts of monthly expenses.

The operating budget for a business will mainly include items of expenditure that arise from month to month on an ongoing basis. For example, they will include the salaries of employees, as well as related costs for a social package, such as health insurance. The budget will also carefully plan operating costs to keep the company running at a level that allows it to make a profit. In many cases, the operating budget accounts for and schedules debt payments, including interest payments on loans.

The foundation of an operating budget is an estimate of the workload required to support the operations of the business. This is usually presented as full units of work, identified by cost items that are associated with operations. Structuring a budget based on reliable information makes it easier to create an operating budget Often, this information is important in order to solve the problem of optimal distribution of funds between various departments of the company so that they can carry out their activities efficiently.

As with any other type of budget, the operating budget may be amended or adjusted from time to time. This can be caused by factors such as changes in revenue, the launch of a new product line, the opening of new or closing of old divisions, changes in consumer demand, etc. Therefore, a certain degree of flexibility is usually included in the operating budget, which allows managers to make decisions to increase or decrease certain items of expenditure as necessary.

Applied in financial planning types of budgets can be divided into four main groups:

main budgets (also called financial);

operating budgets;

supporting budgets;

special budgets.

All these budgets are needed to compile a consolidated production or main budget (master budget). In this case, the master budget can be developed both for the organization as a whole and for an individual business.

Basic budgets:

1. Essence and purpose of budgeting

1.1. Budgeting as a management technology

Budgeting in management accounting refers to the planning process. Planning is a special type of decision-making process that does not concern one event, but covers the activities of the entire enterprise. The planning process is inextricably linked with the control process. Without control, planning becomes meaningless. Planning, along with control, is one of the functions of management and is the process of determining actions to be performed in the future.

Any enterprise that has reached a medium size and, as a result, has such organizational structure, in which the services of the enterprise have a certain level of independence, needs planning and control.

Planning and control are based on the analysis of past financial and

non-financial information. The financial information required for planning is collected and processed in the accounting system.

An estimate (or budget) is a financial document created before the proposed activities are carried out. This is a forecast of future financial transactions. The budget, being an integral part of management control, creates an objective basis for evaluating the performance of the organization as a whole and its divisions. In the absence of a budget, when comparing the current period with the previous one, one can come to erroneous conclusions, namely: the indicators of past periods may include the results of productive work. The improvement of these indicators means that the enterprise began to work better, but it has not exhausted its capabilities. When using indicators from previous periods, opportunities that have arisen that did not exist in the past are not taken into account. The budget, as a means of coordinating the work of various departments of the organization, encourages the managers of individual links to build their activities taking into account the interests of the organization as a whole.

One of the main functions of budgeting is forecasting (financial condition, resources, income and costs). This is what budgeting is valuable for making managerial decisions. The role of the system management accounting and budgeting is to present all financial information, to show the movement of cash, financial resources, accounts and assets of the enterprise in the most convenient form for any manager, even not very knowledgeable in the intricacies of accounting, to present the relevant indicators of economic activity in the most acceptable way for making effective management decisions in the form of the supply of goods or the provision of services to a consumer who wants to buy them, is not necessarily accompanied by their payment and the shipped products are converted into sales proceeds.

The budget system performs a control function, defining the scope of responsibility of managers at various levels and correlating it with indicators of budgets and estimates. Financial control and performance evaluation are in this case the nature of direct and feedback. Comparison of budgetary and actually achieved indicators is carried out by feedback control, and feed-forward control is based on the comparison of budgetary indicators with the goals set by the organization. Through control mechanisms with direct and feedback, a system of remuneration for managers (bonuses, benefits, etc.) is built. It should be noted, however, that for effective work budgetary control mechanisms, it is necessary that the budgeting system assumes a certain freedom of action for managerial personnel without immediate accusations and sanctions in case of short-term deviations from budget indicators. With the help of budgeting, indicators (tasks) are developed for specific groups of employees, which increases their responsibility for the results of work. In addition, the participation of employees of the organization in the preparation of budgets and estimates increases the motivational effect. However, the budget-oriented style of evaluating the work of managers is unacceptable in the face of uncertainty.

The budgeting system forms the financial awareness of the employees of the organization. They must know and clearly understand the consequences of their actions, they must think about the fact that some other, alternative solutions could be more effective from a financial point of view.

Many decisions that affect the performance of the budget year are made in advance as part of a long-term plan that should be the starting point for the preparation of the annual budget. Persons responsible for the preparation of budgets and estimates should receive information from senior management about this. In addition, they should be aware of possible changes in operating conditions, adjustments that change prices, inflation rates, industry demand and output. In the process of presenting information to the heads of the main activities responsible for the preparation of individual sections of budgets and estimates, it is necessary to give instructions on the nature of the response to possible changes in the economic situation. The communication function of budgeting is enhanced when its process is carried out in the form of a combination of information flows moving in opposite directions.

When implementing the communication function of the budgeting process, it should be borne in mind that it is quite laborious and expensive, and if the costs for it are higher than its merits, it will turn into a bureaucratic brake.

The budget period (duration of the time interval covered by the budget) for strategic budgeting is from 3 to 10 years, for operational budgeting - 1 year.

The goals and objectives of budgeting depend on the mission of the organization, its main and private goals. This should:

● clearly formulate the main financial and non-financial goals;

● select indicators that can be used to monitor the achievement of these goals;

● define the tasks (ensuring the achievement of the main goals) that can be solved with the help of budgeting.

● The main objectives of budgeting are formed as follows:

● performing the functions of a planning tool;

● control with direct and feedback;

● providing a motivating influence on the activities of employees;

● formation of a communication environment;

● ensuring the coordination of the organization's activities.

1.2. Types of budgets

The components of intra-company budgeting are:

a) technology (management);

b) organization of the budgeting system;

c) automation.

When setting up intra-company budgeting, it is necessary to follow its basic principles:

● use of budgeting methodology based on Western principles of financial management, adapted to Russian conditions;

● creation of corporate databases based on the collection and processing of primary documentation, including all accounting information (and in addition to it) in a more efficient mode than reporting deadlines;

● strict adherence to the principles of confidentiality.

The tool of the budgeting process are budgets (plans, estimates). They can be divided into four main groups:

● basic budgets (income and expenditure budget, cash flow budget, balance sheet);

● operating budgets (sales budget, production budget, budget of direct material costs, direct labor costs, etc.);

● support budgets (capital investment plan, credit plan, tax budgets);

● additional (special) budgets (profit distribution budget, plans for individual projects and programs).

All these types of budgets are necessary for making a forecast of the financial condition of the enterprise and for conducting a plan-fact analysis .

Budgeting, as a rule, begins with the development of operating budgets, among which it is usually customary to highlight the following:

1. Sales budget.

The sales budget shows the monthly and quarterly sales volume by type of product and by the organization as a whole in physical and cost terms. It provides a forecast of total income against which cash receipts from consumers will be measured. Sales volume is the basis of other budgets (estimates).

2. Production budget (production program);

The production budget is formed monthly and quarterly only in quantitative terms and is the responsibility of the production manager. Its task is to ensure the volume of production sufficient to meet customer demand and create an economically viable level of stocks.

3. Budget for stocks of finished products.

The budget for stocks of finished products contains information on stocks by type of product, for the organization as a whole and for individual businesses within it in physical and cost terms. It can be combined with the production budget, be part of it.

The budget for stocks of finished goods is calculated at the beginning and at the end of the budget period. At the beginning of the period, the amount of reserves is set based on the expected balances at the end of the current (reporting) year and includes:

– actual or expected balances finished products in stock;

- products shipped, for which the payment deadline has not come;

– products not paid for by the buyers on time;

- products that are in the custody of buyers.

4. The budget of direct material costs.

The budget of direct material costs generates information on the costs for the procurement and acquisition of inventory items necessary for the manufacture of products, per unit of production and in general for the organization in natural and cost terms.

It also contains information on stocks of basic materials in value terms at the beginning and end of the budget period.

Operating budget and its composition.

Operating budget- this is a system of budgets that characterize the costs of production, sales of products, enterprise management, as well as the costs of individual stages of production and enterprise management functions.

It includes:

1) sales budget;

2) production budget;

3) the budget of direct costs of raw materials and materials;

4) the budget of direct labor costs;

5) variable overhead budget;

6) the budget of stocks of raw materials, finished products;

7) budget for administrative and commercial expenses;

8) the budget for the cost of goods sold.

Operating budgets are necessary for the formation of natural and cost targets used to draw up the main budgets.

The purpose of operating budgets is to plan current activities. There are the following types of operating budgets.

1. Sales budget. Depending on the production capacity, goals set for the future, sales markets, the planned sales volume is calculated based on the forecasted production quantity and planned prices. Calculations are made by types of products. Drawing up this type of budget is mandatory for all enterprises. Its forms at different enterprises may differ from each other depending on the specifics.

2. Production budget. The planned production volume is calculated. The basis is the sales budget and the balance of finished products. The calculation of this type of budget is necessary for the formation of the production program.

3. The budget of direct costs of materials and raw materials. It is calculated on the basis of material consumption rates per unit of output, forecast data for the budget for the production of raw materials and materials leftovers in warehouses, and market prices. In this budget, the volume of purchases of material and technical resources is formed. Data is generated both in monetary and in-kind terms. This type of budget is typical for manufacturing and construction enterprises.

4. The budget of direct labor costs. The total cost of attracting labor resources is calculated. Initial data: production budget.

The system of labor rationing is used.

5. Variable overhead budget. The calculation is based on overheads broken down by items: depreciation, electricity, insurance costs, etc.

6. The budget of stocks of raw materials, finished products. It is calculated on the basis of data on the balance of raw materials and materials in natural units, stocks of finished products, prices and cost. In organizations with a long production cycle, a work in progress budget may be prepared along with or instead of an inventory budget. In construction organizations, by analogy, a budget for construction in progress can also be drawn up.

7. Budget for management and commercial expenses. Here the predictive estimate of fixed costs is calculated. The composition of the articles depends on many factors, including the specifics of the enterprise.

8. The budget of the cost of goods sold. It is calculated on the basis of previous operating budgets based on the costing methodology approved by the enterprise.

Financial budget and its composition.

The financial budget is a plan that reflects the expected sources of funds and directions for their use in the future period.
Financial budget (financial budget) is used to analyze the financial conditions of the unit by analyzing the ratio of assets and liabilities, cash flow, working capital, profitability.
An important component of the main (consolidated) budget of the organization is financial budget(plan). In the most general view it represents the balance of income and expenses of the organization. In it, quantitative estimates of income and expenses given in the operating budget are transformed into monetary ones. Its main purpose is to reflect the expected sources of funds and directions for their use.

With the help of the financial budget (plan), you can obtain information on such indicators as:

Sales volume and total profit;

Cost of sales;

Percentage of income and expenses;

Total investment;

Use of own and borrowed funds;

Payback period of investments, etc.

The financial budget includes investment and cash budgets, as well as a forecast balance sheet (statement of financial position).

Ticket number 14

Relationships between operating and financial budgets from the perspective of reflecting business processes. 2. Interrelationships between the operating and financial budgets from the standpoint of the completeness of the information necessary for calculating budgets.

The budgeting system of any enterprise is a set of interrelated operating, investment and financial budgets. The operating budget consists of the budgets of sales, production, purchases, etc., the investment budget - from the budgets of capital investments, the sale of non-current assets, and investment receipts. The financial budget usually includes a cash flow budget, a profit and loss budget (budget of income and expenses) and a forecast balance. The master budget, which includes the financial, operating and investment budgets, is often referred to as the master budget.

When developing a budgeting system, one should take into account not only the types of budgets drawn up, but also the relationship between them, as well as the sequence of their formation. The totality of all budgets and the procedure for their preparation is usually called the budget model.

Typically, the budgeting process begins with a sales budget. Based on this budget, the production program of the enterprise is determined, as well as the need for production facilities, personnel, raw materials and materials, and the costs of maintaining service units are calculated. At the next stage, the production cost budget, the procurement budget and other budgets that are part of the operating budget are formed. Based on the operating budget data, a financial budget is created.

Ticket number 15

Core budget models.

The main budget (master budget) summarizes the goals of all departments of the organization responsible for sales, production, R&D, marketing, customer service, finance.

Budgeting is based on the general (main) budget, which is a work plan coordinated across all departments or functions for the enterprise as a whole. It consists of operational and financial budgets.

The master budget is the financial, quantified expression of the marketing and production plans needed to achieve goals.

The core budget consists of three mandatory financial documents:

· Profit and loss statement forecast

・Forecast cash flow statement

· Forecast balance sheet

The budgeting process can be conditionally divided into two parts:

The operating budget consists of:

Implementation budget

production budget

Inventory budget

Budget for direct material costs

The budget for overhead costs

Budget for direct labor costs

・Business budget

· General expenses budget

Profit and loss budget

The financial budget is a plan that reflects the expected sources of funds and directions for their use.

The financial budget consists of:

· Investment budget

・Cash flow plan

Forecast balance

The planning process should begin with a sales plan.

The remaining plans should be built on the basis of this plan and taking into account the achievement of the planned strategic indicators.

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The operating budget is prepared to determine the amount of profit from the activities of the organization.
The components of the operating budget are:
sales budget;
manufacturing program;
production cost budget;
business expenses budget;
general expenses budget.
General business expenses, depending on the adopted accounting policy, may be included in the production cost of products.
The planning of the operating budget is carried out on the basis of norms and standards for the cost of living labor, objects of labor, the use of labor tools, and the organization of production.
The norms for the cost of living labor are the norms of time by type of product and work, maintenance of equipment and jobs, the ratio of the number of main and auxiliary workers and other categories of workers, the coefficients for fulfilling norms, etc.
The cost rates for objects of labor establish the planned consumption of raw materials, basic and auxiliary materials, various types of energy, semi-finished products and components for certain types of products and works, as well as waste and losses.
The norms and standards for the use of labor means include the utilization rate of the average annual production capacity, the norms for the output of products from a piece of equipment, the norms for the labor intensity of repairing a piece of equipment, the hourly productivity of equipment, etc.
The norms and standards of the organization of production establish the duration of the production cycle, the volume of work in progress, the norms of stocks of raw materials and materials, etc.
In addition to the norms and standards listed above, when planning a production program, established environmental, socio-economic and other standards are used.
The sales budget determines the volume, prices and cost of various types of products and services scheduled for sale. When preparing this budget, estimates of specialists and experts on the expected demand for products and services, analysis data on meeting demand for past comparable periods, special techniques and models for marketing research are used.
The sales budget serves as the starting point for planning. On its basis, a production program, a production cost budget, a cash budget, and other sections of the general budget are drawn up.
The production program determines the volume of production of all types of products and services provided, taking into account the balance of finished products in the warehouse at the beginning and end of the corresponding period. To calculate the volume of production of each type of product, the balance of finished products in the warehouse at the beginning of the period is subtracted from the planned sales volume, and the balance of finished products in the warehouse at the end of the period is added to the difference obtained. Usually, the production program is drawn up for the organization as a whole and its divisions for the current year, quarterly and monthly.
The budget for the production cost of products and services is based on the budgets for the costs of preparing and developing production for the use and purchase of raw materials and materials, labor costs, overhead costs and other costs. The composition of the production cost may include general business expenses.
In the budget for the preparation and development of production, they plan the costs accounted for under this article in financial accounting (clause 13.2).
In the budget for the use and purchase of raw materials and materials, on the basis of the production program, the planned consumption of each type of material assets is determined by multiplying the planned volume of production of each type of product and service by the consumption rate of each
different types of raw materials and materials. After determining the costs of raw materials and materials, the volume of purchases for each of their types is calculated, taking into account the balance of stock at the beginning and end of the corresponding period. It is advisable to plan the consumption and purchases of raw materials and materials not only by months, but also by decades, weeks, days, and sometimes shifts, both in kind and in monetary terms.
The labor budget determines the time and labor costs in monetary terms necessary to complete the production program.
The calculation of the need for personnel is carried out in the context of categories of employees separately for the personnel of the main activity (industrial production) and the personnel of non-core activity (the personnel of non-industrial organizations that are on the balance sheet of the organization).
The planned number of personnel of the main activity is determined on the basis of the planned volume of production, the labor intensity of manufacturing each type of product or service and the entire output, the useful working time fund and indicators of labor productivity growth.
The planned wage fund of employees is determined, as a rule, using data on the planned volume of production and wage standards for one ruble (standard hour) of output or data on the planned number of employees and the planned average wage per employee (for each category separately ).
The budget for overhead costs indicates the planned costs for the maintenance and operation of production equipment and the costs of maintenance, organization, management structural unit. Planning of overhead costs is carried out according to the cost items used in accounting for these costs (clause 13.2), but without unproductive costs.
The budget for other production costs determines the planned values ​​of the costs accounted for this cost item (clause 13.2).
An integral part of the operating budget is the budget for commercial expenses (sales expenses). This budget provides a detailed list of all costs associated with the sale of products and goods. It should be borne in mind that some costs for the sale of products may be variable (the cost of transporting finished products and goods), while others are fixed.
In the budget of general business expenses, according to the items used in financial accounting (clause 13.2), but without general business unproductive expenses, they plan the general expenses for the organization for its management.
After the preparation of these budgets, the indicators of the full and incomplete production costs of products, the cost of
the bridge of products sold, the indicated indicators for certain types of products and services, indicators of the profit plan, profitability, etc.
When distributing the planned values ​​of indirect costs for individual units, types of products, services provided, and other objects of accounting and calculation, as a rule, the methods used in financial and management accounting are used.