GOALS, PRINCIPLES AND ADVANTAGES OF APPLICATION OF BUDGET MANAGEMENT IN THE ENTERPRISE

Abstract

For modern enterprises, fiscal management is not only a process of budgeting, but also a management technology based on the transformation of its goals and tasks into the system of budgets, the organization of control over their implementation, the analysis of deviations and adjustment of economic activity in order to achieve the goals. Its main features are that it includes a long-term perspective, establishes links with broad organizational goals, focuses budget decisions on results, engages and promotes effective communication with stakeholders, provides incentives for management and employees.

The main objectives of budget management in the enterprise are allocated: planning - includes budget development; control - compares performance indicators of different structural units with planned ones; coordination - ensures effective coordination by all structural divisions; increase of efficiency - establishment of planned indicators of the enterprise with the account of external and internal factors of activity; financial planning - plans for cash flow

The basis of effective implementation and functioning of budgeting at an enterprise is the development of scientifically grounded principles that determine the nature and content of the enterprise. The article gives a description of the main principles of budgetary management and their components, through which the management of the enterprise, which makes management decisions, can achieve the set strategic goals. Principles of budget management for enterprises are: the establishment of strategic goals of the enterprise to make managerial decisions by management; development of approaches to achieve the established goals; budgeting in accordance with the approaches to achieve goals; performance appraisal and budget adjustments

Significant advantages of using budget management are to increase the management perspective in the enterprise as a whole, identify problems and timely adoption of necessary management decisions, coordinate the activities of all structural subdivisions, establish criteria for rapid assessment of efficiency and adjust inefficient activities, motivate responsible persons to rational use of resources.