Uman NUH | today: 07/19/2024

Budgeting as an effective tool for organizing financial controlling at Ukrainian enterprises

Author(s) Huzar B.S., Candidate of Economics Sciences, ,
Ptashnyk S., Candidate of Ekonomikal Sciences, , Uman National University of Horticulture
Ulyanych Y.V., Candidate of Economics, , Uman National University of Horticulture, Ukraine
Category Economics
year 2023 issue Issue number 102. Part 2
pages 167-181 index UDK 658.012.32:338.24
DOI 10.32782/2415-8240-2023-102-2-167-181 (Link)
Abstract In the conditions of a market economy, which is characterized by the independence and own responsibility of business entities for the results of economic activity, there is an objective need for constant control, analysis, adjustment and forecasting of changes in the financial state and assessment of the financial capabilities of the enterprise for the future. The enterprise management system should be improved taking into account the accumulated foreign experience, the latest theoretical and practical achievements in the field of management. One of the effective ways of improving the management system at the micro level for domestic enterprises is the use of the budgeting system, which is effectively implemented and used in foreign countries. The article reveals the essence and features of the budgeting system as a tool for organizing financial controlling. The current state of the organization of budgeting as an effective tool for the organization of financial planning and financial controlling is considered. The main tasks of budgeting, which are aimed at the effective process of formation and execution of enterprise budgets, are revealed. The main stages and methods of budgeting are considered. The main advantages and expediency of implementing the budgeting system in enterprise management are noted. The essence of the organization of management accounting and reporting as a foundation for budgeting and financial controlling and information support of the budgeting system is revealed. The main problems affecting the budgeting process and its effectiveness are considered. It was noted that the main problem in budgeting is the quality of the provided information, which is used for drawing up enterprise budgets. The directions and factors of successful implementation of the future implementation of the budgeting system at Ukrainian enterprises are considered. It has been studied that the budgeting system is the main component of enterprise management and an effective tool for financial planning of enterprise activity. The implementation of the considered proposals for the implementation of the budgeting system will make it possible to effectively organize and coordinate all types of activities at the enterprise, and to respond promptly to the changes that occur, and will also significantly increase the level of motivation of managers and specialists in responsibility centers due to increasing their financial freedom in the process of using funds approved budgets
Key words budgeting system, types of budgets, operating budgets, financial budgets, consolidated budget, budgeting methods, budgeting stages, management accounting, financial controlling
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