Recently, the introduction of budgeting is simply necessary in addressing organization management issues. At the same time, if information on the nature of budget management was previously interested, today interest in this area is moving into the practical field.
Thus, the implementation of budgeting will be effective in the correct definition of the concepts and tools that operate this technology. You also need to clearly understand who is participating in it, what costs are planned to be incurred and what results are expected to be received. It is for this that special corporate events are held in the field of budget management of a training nature.
However, company executives, commercial directors, and purchasing or production directors do not always understand what results the effective implementation of budgeting brings. But it is they who are often at the enterprise responsible for the formation and execution of budgets. Therefore, in order to control the execution of budgets adopted by the organization, these officials must know the sequence and the articles by which they are formed and planned.
The introduction of a budgeting system in any organization is associated with a large number of problems. Often organizations as the first step choose the development of budget formats. However, this approach can lead either to failure (unprocessed processes for collecting the necessary data can lead to a delay in budgeting), or to the fact that the budget will simply be created very late, and can no longer be taken as a decision-making tool.
The main tasks facing the organization when creating a budget are:
- budgeting systems, consisting in the development of a financial structure within which the process will be conducted directly;
- budget formats, their structure and forms;
- Organization of budgeting aimed at developing regulations and appointing responsible persons;
- automation and other technical side of the budgeting process, the use of special software.
Implementation of budgeting is a complex process, the main components of which are the implementation of program and administrative activities. These measures should be used only in aggregate, since it is impossible to work with the subsequent implementation of budgeting only using software. And concentrating mainly on software and automation and not taking into account the organizational part of this process, the company runs the risk of getting low-cost budgeting.
For the results and timing of the implementation of the draft budget, a specially trained specialist - manager should be responsible. As a rule, this is the head of the budgeting department or financial director. In the case of the appointment of a responsible person, when it is a financier, economist, accountant or programmer, such budgeting is doomed to failure in advance, as these specialists have no leverage over the company's management.
