Formation of Individual Budgeting Model at the Enterprises
Journal Title: Oblik i finansi - Year 2021, Vol 1, Issue 2
Abstract
In modern business conditions there is an urgent need to apply innovative approaches to the implementation of a holistic budgeting system, which will contribute to the efficient use of financial resources through the formation of an individual budgeting model. Despite in-depth scientific research of the budgeting system at the enterprise, the issues related to the choice of the model of its implementation are insufficiently substantiated. It is necessary: to clarify the list of system-forming elements; to harmonize the strategic objectives of the enterprise and operational objectives related to the implementation of the budgeting model; to determine the specific conditions of the enterprise in the preparation of budgets. The purpose of the article is to assess the advantages and disadvantages of existing budgeting models at the modern enterprises, the formation of an individual budgeting model and the characteristics of its system-forming elements based on the use of decomposition analysis. The expediency of individualization of the budget model was proved taking into account such factors as the organizational structure of the enterprise, type and branch of economic activity, management requirements for the composition and structure of information reflected in budgets. Based on the application of decomposition analysis, the system-forming elements of the individual budgeting model (purpose, tasks, functions, principles, subject, object, subject, result, process) were specified. The restrictions for such model functioning were determined. The positive effect of the individual budgeting model implementation at the enterprise will be: the effective realization of its strategic financial potential; the identification of “bottlenecks” in the organizational structure of the enterprise, including among the centers of financial responsibility; the improving information interaction between individual structural units; the strengthening the system of control over the results of the enterprise activity.
Authors and Affiliations
Viktoriia Topylo & Oleksandr Petruk
Keywords
Related Articles
- EP ID EP697586
- DOI 10.33146/2307-9878-2021-2(92)-85-94
- Views 81
- Downloads 0
Діагностика стану облікового відображення лісокористування
Стаття присвячена аналізу стану ведення бухгалтерського обліку лісокористування і виявлення проблемних питань облікового відображення лісозаготівель і лісовідновлення. Проведено оцінку стану ведення бухгалтерського облік...
Роль обліково-аналітичного забезпечення державної аграрної політики в умовах фінансових криз
Державна аграрна політика має бути націлена на виявлення чинників створення доданої вартості і стимулювання її генерування. Ефективна реалізація державної аграрної політики не можлива без наявності достовірної інформації...
Priority Approaches to Risk Assessment in the Activities of Entities of the Agricultural Sector
The development of spheres of the economy is significantly dependent on changes in the external environment. Increasing the production capacity of enterprises, expanding market opportunities, image positions are formed u...
Value Relevance of ESG Scores: Evidence from European Stock Exchange Markets
The research is analyzing the value relevance of other comprehensive income and the environmental, social and governance (ESG) scores in regard to the share price in Europe (Italy, France, Germany and Spain). As part of...
Corporate Social Responsibility, Benefits beyond Legitimacy: A Symbiotic Framework
The 21st-century social and political environment has continued to evolve and heightens the demand for organisations to provide accountability for the sustainability operations of their businesses. Accordingly, organisat...