BUDGETING
Budgeting is the process of planning the future activities of the Company, executed by the system of budgets.
Advantages of using budgeting system:
- formation of perspective thinking
- detection of short-term problems
- coordination of activity of structural divisions
- formation of the basis of the control and control system
- provision of the system of authority
The main stages of budgeting:
- definition of responsible for the budgeting process
- harmonization of budgeting rules (budget period, system of budgets, CSFs, methods of budgeting, etc.)
- determination of the key limiting factor
- preparation of budgets in the zone of the limiting factor
- budgeting taking into account interconnections
- review and budget coordination
- preparation of generalized budgets
- familiarization of the interested parties with the budgets
- assessment of the Company's activity from the point of view of budgeting