Financial planning and budgeting. Financial planning and budgeting at industrial enterprises

Financial planning at the enterprise: principles, content, goals, objectives.

Sustainable operation of enterprises in market conditions is impossible without the use of modern methods of financial management. One of the main directions for improving the efficiency of financial management is the improvement of intra-company financial planning and control. Domestic and foreign practical experience suggests that the problem of improving financial planning at the micro level continues to be relevant. Planning stabilizes the activity of the enterprise in the conditions of unpredictable market relations.

Organizational planning has two closely related and interdependent aspects:

* general economic - from the point of view of the theory of the firm;
* managerial - as a function of management, which consists in the ability to predict the activities of the company and use this forecast in order to develop it.

Planning helps to eliminate unnecessary transaction costs within the corporation on trade deals (contracts), for example, on finding buyers and suppliers, negotiating the subject of the transaction, paying consultants, etc.

Planning provides answers to questions:

1. At what level of development is the enterprise (its economic potential) and what are the results of its financial and economic activities.
2. With the help of what resources, including financial ones, can the goals of the enterprise be achieved?

On the basis of a system of long-term and operational plans, they organize planned work, motivate personnel, monitor results and evaluate them using planned indicators. The corporation is not able to completely eliminate entrepreneurial risk, but can reduce its negative consequences with the help of skillful forecasting.

The benefits of planning are:

* planning ensures the use of favorable opportunities in a changing market environment;
* as a result of planning, many emerging problems are clarified; planning stimulates managerial activity;
* clear coordination of actions between structural subdivisions (branches) of the corporation is ensured;
* management is provided with the necessary information;
* optimized resource allocation.

The financial plan is a generalized planning document that reflects the receipt and expenditure of funds for the current (up to one year) and long-term (over one year) period. This plan is necessary to obtain a qualitative forecast of future cash flows. This planning document involves the preparation of current and capital budgets, as well as forecasting financial resources for one to three years. In Russia, until recently, such a plan was drawn up in the form of a balance of income and expenses (for a year with a quarterly breakdown).

According to the definition of R. Braley and S. Myers, financial planning is a process that includes:

* analysis of investment and current financing opportunities available to the corporation;
* predicting the consequences of decisions;
* justification for choosing an option from a number of possible solutions for inclusion in the final plan;
* assessment of the compliance of the achieved results with the parameters set in the financial plan.

Note also that forecasting is based on the most probable events and results. In the planning process, specialists should provide not only optimistic, but also pessimistic scenarios for the development of events. In addition, according to these authors, financial planning is not designed to minimize risks. On the contrary, this process includes risk planning: which risks should be accepted and which should be rejected.

F. Li Cheng and D.I. Finnerty understands financial planning as the process of analyzing dividend, financial and investment policies, predicting their results, the impact of these results on the economic environment of the corporation and making decisions about the acceptable level of risk and the choice of projects.

Financial planning models are designed for clarifying forecasting by determining the relationship between decisions on dividends, investments, sources and methods of financing a corporation.

The main goal of financial planning is to determine the possible volumes of financial resources, capital and reserves based on forecasting the amount of cash flows from own, borrowed and attracted from the stock market sources of financing.

This goal means:

ensuring the production, scientific, technical and social development of the corporation, primarily at the expense of its own funds;

increase in profits mainly due to the growth of sales volume and reduction of production and distribution costs;

ensuring financial stability, solvency and liquidity of the corporation's balance sheet, especially during the implementation of large-scale investment projects.

The objectives of financial planning are:

* use of economic, legal, accounting and market information, as well as information about the financial and investment policy of the company;
* analysis and evaluation of the relationship between decisions on dividends, financing and investments;
* forecasting the consequences of managerial decisions in order to avoid the impact of negative events and clearly represent the relationship between operational and long-term decisions;
* choosing decisions that are feasible within the framework of the adopted financial and investment plans;
* a comparative assessment of the results of the implementation of the chosen decisions and the goals established by the financial plan.

Financial forecasting: essence, elements of the forecasting cycle, methods for its implementation

Forecasting is a long-term development of changes in the financial condition of the object as a whole and its various parts. It can be carried out both on the basis of extrapolation of the past into the future, taking into account expert assessment of the trends of change, and on the basis of direct prediction of changes.

Forecasting is not reduced to some technical exercise, but it is not a "free fantasy of the mind" either. The pragmatic side of the forecasting process is the ability to measure the level of uncertainty with the resources available to overcome it.

Forecasting does not set the task of directly implementing the developed forecasts in practice. This process consists in developing a complete set of alternative financial indicators and parameters that allow determining options for the development of the financial condition of the managed object based on emerging trends.

Forecasting has specific methodological foundations that are different from planning methodology. The composition of the indicators of the forecast may differ significantly from the composition of the indicators of the future plan. In some ways, the forecast may turn out to be less detailed than the calculations of planned targets, and in some areas it will be worked out in more detail.

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Forecasting methods include: methods of economic statistics, mathematical and statistical methods for studying relationships, methods of economic cybernetics and optimal programming, econometric methods, methods of operations research and decision theory, etc.

Enterprise budgeting. Goals, types, format of the main budgets.

Budgeting is the process of developing planned budgets (estimates) that combine the plans of the management of enterprises (corporations), and primarily production and marketing plans.

E.S. Stoyanova defines the budgeting process as "an integral part of financial planning, that is, the process of determining future actions for the formation and use of financial resources."

Purpose of budgeting--providing the production and commercial process with the necessary financial resources both in the total volume and by structural divisions.

To achieve this main goal, the main tasks of budgeting should be solved:

Establishment of objects of budgeting;
· development of a system of budgets -- operational and financial;
Calculation of relevant budget indicators;
· Calculation of the required amount of financial resources to ensure financial stability, solvency and liquidity of the balance sheet of the enterprise;
calculation of the amount of internal and external financing; identification of reserves for additional attraction of funds;
forecast of income and expenses, as well as the capital of the enterprise for the coming period (quarter, year).

In the general system of budgets, the main (consolidated) and local budgets are distinguished.

The master budget is the financial, quantified expression of the marketing and production plans needed to achieve the goals.

Local budgets serve as the initial information base for the preparation of the main budget. The main reason why enterprises lose a significant part of their income by not making a core budget is the lack of reliable information about their customers and the sales market. As a result, there are difficulties in forecasting the real volume of sales of products (works, services). From the standpoint of revenue optimization, not only the correct preparation of the main budget for the coming year is important, but also the systematic monitoring of its implementation, which helps to minimize unforeseen financial losses.

The budgeting process is continuous or rolling. Based on the planned financial indicators set for the year, in the process of current financial planning (before the planning period), a system of quarterly budgets is developed. Monthly budgets are compiled within the framework of quarterly budgets. Rolling budgeting guarantees the continuity of the system of operational planning of the financial activities of the enterprise.

To improve financial management at Russian enterprises, it is necessary to introduce a system of financial management and budgeting.

Financial management--the process of orderly actions to form a rational structure of management and control. The process of financial management involves the creation of a single information field and the setting up of a system for planning, accounting, analysis and control over the movement of funds. The purpose of creating such a technology is to increase the profitability and value (price) of the enterprise. The introduction of budget management involves:

preparation of the organizational structure (Regulations on the organizational structure and job responsibilities of specialists, staffing);
Formation of the financial structure of the enterprise (Regulations on the financial structure and financial accounting centers);
introduction of accounting technology - accounting, tax and management;
· development of Regulations on budgeting (Budget standard of the enterprise);
determination of financial accounting centers (production, marketing, supply and other divisions);
· preparation of operational and financial budgets for the enterprise as a whole and in the context of financial accounting centers.

The main idea of the budgeting system is that the leading parameters of the economic activity of an enterprise are taken into account at the level of its individual structural divisions in the context of types of income and expenses. To do this, create appropriate responsibility centers: income, expenses, profits and investments.

Responsibility center is a set of articles of the enterprise budget (combined according to a common feature), for the planning and implementation of which one of the managers of the enterprise or the head of a structural unit (branch) is responsible. As part of the budgeting process, the responsibility center manager is responsible for:

* organization of planning and rationing of the items of income and expenses entrusted to him;
* correct planning of the relevant budget items;
* monitoring the implementation of budget items;
* making decisions to eliminate deviations of planned budget items from actual parameters (if such a deviation exceeds 5%).

In practice, responsibility centers are created in the form of financial accounting centers (FAC).

This division is based on the criterion of "business strategy", i.e. the possibility of highlighting the main directions from the general strategy of the company, each of which is assigned to a separate business unit. The business unit is responsible for the successful implementation of one of the directions. An important role in the formation of financial accounting centers is played by the organization of management accounting for income and expenses in each business unit, which allows you to build an accounting policy so that you can determine the final financial result.

Budgeting provides the management of the enterprise with the following advantages:

serves as a planning and control tool;
Increases the efficiency of managerial decision-making;
Allows you to clearly distribute the responsibility and authority of the heads of departments and specialists;
· increases the objectivity of the assessment of the activities of structural divisions and branches.

Budgets are divided into operational and financial.

Operating budgets include:

§ sales budget;
§ production budget;
§ inventory budget;
§ budget for materials and energy costs;
§ budget for labor costs;
§ depreciation budget;
§ budget for overhead costs;
§ the budget of commercial expenses;
§ budget for administrative expenses;
§ income and expense budget (profit and loss forecast).
§ Financial budgets:
§ cash flow budget;
§ budget according to the balance sheet (forecast balance sheet of assets and liabilities);
§ budget for the formation of current assets and sources of their financing;
§ capital (investment) budget.

Budgets can also be classified according to the following criteria:

* according to the frequency of compilation - periodic and constant (stable);
* according to the method of calculating indicators - based on data from past periods and developed "from scratch";
* by taking into account the impact of changes - fixed, changeable and multivariate.

The composition of the consolidated (consolidated) budget of the enterprise includes:

Initial forecast data (volumes of production and sales, capital investments, etc.);
Consolidated budget for income and expenses. The budget of expenses includes local budgets of production, commercial, administrative, as well as general expenses for the corporation as a whole (full cost of products, works, services);
· profit and loss statement forecast (Form No. 2);
· Forecast of the cash flow statement (Form No. 4);
· forecast of the balance of assets and liabilities (according to the enlarged nomenclature of articles - form No. 1).

The revenue section of the consolidated budget is predicted on the basis of the sales plan (implementation) of products and the plan of cash receipts from other sources. In addition, it is necessary to take into account the input cash balances on the balance sheet accounts of the corporation: cash (50), current accounts (51), foreign currency accounts (52), special bank accounts (55), transfers in transit (57).

The expenditure section of the consolidated budget is calculated based on:

budget of material costs based on the production program;
the budget for electricity costs;
the budget of the wage fund;
· plan-schedule of tax payments;
· plan-schedule of contributions to the state social off-budget funds;
· plan-schedule of repayment of credits;
budget for other expenses.

In practice, there are frequent cases of delayed payments for shipped products or mutual offset of counter payments. In such a situation, the actual revenue part of the consolidated budget is reduced. Therefore, in order to eliminate the deficit, it is necessary to promptly review (adjust) its income and expenditure items. Adjustment of the budget is in the competence of the management of the enterprise.

Organization of budgeting at the enterprise

Many enterprises make budgets for financial accounting centers - profit centers, cost centers and profit centers.

Financial Accounting Center (FAC) is a structural unit that carries out a number of main and auxiliary activities and is capable of influencing income or expenses from this activity. The composition of the CFU includes:

1. profit center, whose activities are related to profit-generating units (for example, a workshop with a complete product production cycle, a transport workshop, etc.);
2. cost center, whose activities are related to structural units that do not bring profit (for example, supply and equipment departments, auxiliary and service facilities);
3. venture center, whose activities are related to units from which profits are expected in the future.

Another classification of CFU is also possible based on the specifics of the economic and financial activities of the enterprise.

The following information is used to develop budgets:

- forecast data on proceeds from the sale of products (works, services);
- data on variable production costs in the context of each product group;
- generalized data on fixed costs with their distribution by individual types, which makes it possible to reasonably assess the profitability of individual products;
- forecast data on the share of barter exchange, mutual offsets in the total volume of proceeds from the sale of products;
- forecasts regarding tax payments, contributions to state non-budgetary funds, bank loans and the possibility of their repayment;
- data on the production potential of the enterprise (composition and structure of fixed assets, the level of their physical depreciation, retirement and renewal rates, capital productivity and profitability);
- forecast of the volume of investments and sources of their financing;
- forecast of the composition and structure of current assets, the amount of their growth and sources of financing, indicators of turnover and profitability of current assets, etc.

Priority actions for the transition to budget management:

· Analysis of economic potential (resource and financial).
Implementation of management accounting and reporting.
· Personnel accounting.
· Construction of a financial management system, ie allocation of financial accounting centers.
· Preparation of operating and financial budgets and related reporting to monitor their implementation.

Budget management begins with the appointment of a budget director. The budget director is usually appointed financial director (vice president for economics and finance in a joint-stock company). He acts as a full-time expert and coordinates the activities of departments and services of the enterprise. The budget director manages the work of the budget committee, which consists of top-level specialists in the management of the enterprise. The Budget Committee is a permanent body that reviews strategic and financial plans, makes recommendations and resolves controversial issues that arise in the process of developing and approving budgets. In Western corporations, such a structural unit is called the “strategic planning group” or “financial analysis and planning group”.

Constantly changing market conditions require entrepreneurs to take the most active steps to improve previously effective, but already outdated business models. Increasing attention needs to be paid to the ratio of income and numerous expenses. In addition, now, more and more often, business leaders are faced with the problem when accounting clearly shows data on profits, but money is not felt in the right amount. How to solve this issue? How to make your business as efficient as possible? How to cut costs? Professionally conducted financial planning and budgeting will give you answers to these and many other questions.

A fairly common practice is cases in which entrepreneurs identify financial planning and budgeting as different concepts of the same set of activities. Such an opinion is erroneous and in order to show the difference it is necessary to consider each technology separately.

financial planning

Planning is a process whose main task is to determine the volume of incoming financial resources (profit, depreciation, etc.), as well as the analysis of their distribution and direction of use in the period under review. Thus, the purpose of financial planning is to study the total need of the company for financial resources, their volume, which in turn contribute to the implementation of the fulfillment of credit and financial obligations to banks, creditors and ensure the expansion of the enterprise by stimulating employees.

Budgeting

A key feature of budgeting is the planning of the future activities of the enterprise, the results of which are presented in the form of a structured system of budgets. The main tasks of this technology include: control over the implementation of contracts and laws; creation of a clear base for control, as well as evaluation of the plans of the enterprise; justification of the company's expenses; control of current planning.
At its core, budgeting is the main step that follows after the analysis of the target planning of the profit and unprofitability of the enterprise. A rather important point is that in the budgeting process, not only profit is considered (this is a rather conditional indicator), but directly net cash flow, which is fundamentally not negative.

Financial planning and budgeting. What are the differences?

The most important difference that separates financial planning and budgeting into two different technologies is the end result they aim for. In particular, planning mainly determines the real financial costs that a company needs to achieve certain goals. Budgeting is aimed at developing a strategy and shows what measures need to be taken to implement a particular project, task, etc. In other words, financial planning points directly to the goal itself, and budgeting “says” what needs to be done to achieve it.

financial planning, budgeting, and forecasting are areas of management activity that are extremely important for the stable development of an enterprise. How are they organized?

What is the essence of financial planning and forecasting?

Financial planning is the activity of an economically active entity (enterprise, government agency, bank, NPO) associated with the distribution of funds in accordance with its actual needs. Financial planning involves building an algorithm for spending current financial resources, as well as those that are transferred to the disposal of an economically active entity in accordance with analytical calculations (or based on current contracts, appropriations, investments and other reliable sources).

Financial planning has the following main features:

determination of a specific period within which the necessary capital transactions are expected to be carried out;
determination of target items of expenditure and income, as well as the schedule for their implementation;
determination of calculated indicators reflecting the amount of income and expenses (currencies, units of measurement of volume, quantity).

In turn, financial forecasting is an activity of an economically active entity, which is also associated with the distribution of funds in correlation with its needs, however, the corresponding algorithm for spending capital in forecasting is built on the basis of an estimated income that is not supported by reliable sources. This may be, for example, an increase in revenue due to expected currency fluctuations or an increase in exchange prices for a particular product exported by the organization.

The main features of financial forecasting will differ significantly from those noted by us above and characterizing planning due to the fact that the uncertainty in the sources of income does not allow us to determine the target items of expenditure. It is also problematic to build a schedule of income and expenses in this case. However, as in the case of financial planning, forecasting is usually applied to a specific period of expected capital transactions, and also allows for the use of calculated indicators.

What is budgeting as a financial planning tool?

In some cases, along with the term "financial planning" in economic theory, as well as in management practice, the concept of financial budgeting is used. This is quite understandable. The fact is that budgeting, in accordance with one of the interpretations of this term, can be legitimately considered as one of the components of financial planning. Its main criterion is the definition and approval by an economically active subject of various items of income and expenses of the enterprise, the definition of the sequence, structure or schedule for their implementation. The corresponding schedule can be formed in the form of a budget or, for example, estimates.

Budgeting can also be understood as a technology or financial planning tool, with the help of which the analysis of calculated and actual financial indicators is carried out. This technology involves work in several directions at once. Namely:

in the field of developing financial plan items;
in the field of their execution;
in the field of control over the execution of the points of the financial plan.

This interpretation of the concept of budgeting is used by economists when developing scenarios for collecting, analyzing and interpreting financial information that reflects the dynamics of capital movement in an enterprise, spending and replenishing resources, and statistics on the most expenditure and income items. This information may be requested by owners, investors, banks.

What is the relationship between financial planning and budgeting in an enterprise?

Let's try to summarize how financial planning and budgeting relate to each other.

The main thing to note is that the term "budgeting" has 2 main interpretations:

narrower - when it is understood as a component of financial planning, which is the activity of an economically active entity in drawing up budgets and estimates that reflect income and expenses;
broader - when budgeting is understood as a complex technology or financial planning tool that involves working with information reflecting various business processes.

Depending on the current tasks of financial management, either the first or the second approach to understanding the essence of budgeting can be applied.

Is budgeting an essential component of financial planning?

As a rule, financial planning necessarily includes budgeting, since the determination of target items of income and expenses in the process of the corresponding direction of management activity is one of the main features of financial planning. Moreover, in most cases it is acceptable to consider financial and budgetary planning and forecasting in a single context.

At the same time, in order for the money management algorithm to be complete, financial planning needs to be supplemented with other components. It is most convenient to consider them in correlation with the basic principles of financial planning.

What are the basic principles of financial planning in an organization?

Modern Russian experts identify the following list of key principles:

validity;
consistency;
balance;
transparency.

Let us consider their specifics, as well as the features of the corresponding components of financial planning in more detail.

The principle of reasonableness implies the approval of those expense items that reflect the objective needs of the business, as well as those income items that are supported by legal guarantees or objective calculation data. Those costs that are not needed by the business or are optional within the period corresponding to the financial plan should be excluded or given the status of secondary. In turn, income, the extraction of which is not guaranteed, should also not be considered as an obligatory element of the financial plan.

Following the principle of consistency in financial planning involves the definition of cost items that form a commonality of costs, one way or another interconnected and designed to become a logical element of the company's investment policy. In an effective organization, it is extremely rare that any item of expenditure is not related to others, at least in terms of focusing on solving common business problems.

Financial plans should be built in a balanced way in terms of finding the optimal ratio of the real needs of the company and the resources that it has. Another aspect of balance is the elaboration of scenarios for the emergence of various imbalances in the company's business model, dictated, for example, by external factors.

Financial planning should be transparent for all entities and other stakeholders involved in its formation. Transparency can be expressed in the aspect of having full access to the figures indicated in the items of income and expenses, to the methods of their determination, interpretations of these methods - so that everyone involved in the financial management of the company understands what determines the structure of a particular financial plan.

Thus, budgeting as a process of compiling income and expense items, as well as one of the most integral elements of financial planning in most cases, is supplemented by a list of methods that:

aimed at identifying the validity of items of income and expenses;
allow assessing the quality of following the principle of consistency in building financial plans;
allow to form balanced financial plans;
allow for transparency in the formation of financial plans.

Let us consider in more detail the specifics of the relevant methods, at the same time comparing them with the specifics of financial forecasting.

Basic methods of financial planning and forecasting

So, above we have identified 4 main groups of methods that should be considered as integral elements of financial planning.

The first group of methods - those that are aimed at identifying the validity of the items of income and expenses of the company - can correspond to:

settlement analytics;
normalization (usually not used in forecasting);
statistics.

With the help of calculation, analytical and statistical tools, an economically active entity determines the key and secondary items of income and expenses, and through rationing, fixes the marginal values of costs for each of the items.

The second group of methods - those designed to ensure adherence to the principle of consistency - include:

economic analysis;
extrapolation;
financial mathematics.

Using economic analysis and financial mathematics, the economic subject examines the current financial plans for balance. Using extrapolation, the financier can improve the criteria for assessing the consistency of plans by using data that reflects the effectiveness of planning in previous periods.

The third group of financial planning methods - those aimed at building balanced financial plans - may include:

balance sheet;
modeling (one of the basic ones in forecasting);
multivariate calculations.

Using the method of balance calculation, an economic entity determines the ideal scenarios for the ratio of income and expenses within certain reporting periods - at a theoretical level. Modeling and multivariate calculations are designed to bring this theory closer to practice.

The fourth group of financial planning methods - those aimed at ensuring the transparency of building plans - include:

legal expertise of document flow;
expert assessment of the document management infrastructure;
internal corporate communications.

Through legal examination of the sources used in financial planning, the economic entity determines the levels of access to them by certain employees of the company. Using an expert assessment of the document management infrastructure, the financier determines how quickly and efficiently such access can be implemented in terms of labor costs and the expenditure of other significant resources. Internal corporate communications - communication with subordinates, questionnaires, planning meetings - will allow you to find out how the development of work with documents is going on with the existing infrastructure and access levels in practice.

As a rule, these methods are not used in forecasting, since no practical tasks are set before the employees of the company. Forecasts are used by the financiers themselves.

The main stages of financial planning

Let's look at the stages within which the organization of financial planning in the enterprise is carried out. There are a large number of approaches to their definition. Many modern Russian specialists prefer to adhere to the concept, according to which it is legitimate to distinguish 3 stages:

strategic;
tactical;
operational.

As part of the strategic planning stage, financial plans are formed for the long term, usually for several years. Conceptual bases of work of the enterprise, key purposes, tasks of business are worked out. Budgeting at this stage of planning does not perform a very important function: in the sources in which budgets and estimates are recorded, information on income and expenditure items is reflected, as a rule, rather superficially. The main role in the preparation of strategic financial plans usually belongs to the owners and top managers of the company.

Tactical planning, in turn, involves the formation of financial plans for the medium term, most often within a year. The content of individual corporate projects, specific areas of enterprise development are being worked out. The main role in the formation of tactical financial plans, as a rule, is played by middle managers - heads of departments and divisions. However, it may be necessary to coordinate the relevant plans at the level of top managers and owners of the company.

Operational financial planning involves the development of short-term algorithms for managing the company's capital, usually within a quarter. Budgeting at this stage performs the most important function - income and expenditure items within the framework of operational planning are determined as detailed and localized as possible. The main role in operational planning is played by ordinary employees, who in some cases understand the intricacies of local business processes much better than their managers. The role of managers again can be reduced to the approval of the relevant plans.

Intra-company financial planning (at the enterprise on the example of a plant)

Let's consider what a scenario for the practical implementation of planning can be, using the example of a plant.

The first stage of financial planning, if we adhere to the concept that we have discussed above, is strategic. Within its framework, the plant management:

is determined with the sources of investment for the entire period of the plan;
approves the coefficients of dividends that are supposed to be drawn during the relevant period;
approves the target rates of business development (growth, stabilization, curtailment of production, gradual exit of the company from the market), as well as key factors determining this choice.

Since the plant is the economic entity in our example, the following indicators can correspond to the above points:

investments - credit funds within the framework of the state program of import substitution;
average annual dividend ratio - 30%;
business development rates — growth due to the development of new markets in the North-Western Federal District.

You can learn more about the features of calculating dividends in business in the articles:

At the tactical stage, competent employees of the enterprise:

form the necessary documentary base for budgeting at the appropriate level - for example, if a tactical plan is built for a year, then these can be intra-corporate plans for profit and loss, cash flow, balance;
approve the list of financial planning methods involved, build the infrastructure necessary for their implementation;
compose the necessary explanations and instructions for specialists responsible for the implementation of the tactical stage of financial planning.

In turn, within the framework of operational planning, the competent employees of the plant, as we noted above, are especially active in using budgeting methods, since in this case the detailing of business processes is important. Work in this direction is mainly related to the development of various types of documentation. Basically, these are sources used for the purpose of:

planning and accounting of balances, postings, estimates;
planning and accounting for credit obligations, as a rule, industrial enterprises actively borrow funds in order to invest in fixed assets;
planning and accounting for foreign exchange transactions, emissions - the activities of industrial companies are often associated with exports and imports, the issuance of shares.

These documents, therefore, are designed to translate to the level of local economic processes those indicators that are determined at the tactical stage of planning.

Budgeting. In economic literature, especially in English, one can come across two closely related concepts: planning (planning) and budgeting (budgeting). It is clear that both of these terms mean the processes of drawing up a plan and a budget, respectively. There is no strict and generally accepted distinction between these concepts. In particular, the approach is quite common, according to which the plan is a broader concept than the budget, since it includes the entire range of actions ordered in a certain way aimed at achieving certain goals, and these actions can be described not only with the help of formalized, quantitative assessments, but also by listing a number of informal procedures. A budget is a narrower concept that implies a quantitative presentation of an action plan, and, as a rule, in monetary terms. Thus, here the emphasis is, firstly, on the dominant cost component in budgeting and, secondly, on a significantly greater certainty, elaboration and detailing of the budget.

In the most general form, the budget (budget) can be defined as a list (estimate) of forthcoming income and expenses (costs) related to a certain time period in terms of cost estimates; a conditional term in the management accounting system, meaning the procedure for coordinating the inflows and outflows of a certain resource (asset) or changing some indicator (for example, the budget for direct costs of raw materials and materials, the production budget, the budget for variable overheads, etc.).

In centralized finance, the budget is used primarily to coordinate the expected (planned) revenues and expenditures of the state, its subjects and local authorities. If the revenue side of the budget exceeds the expenditure side, they speak of a budget surplus; if the opposite takes place - about its deficit; the equality of the revenue and expenditure parts of the budget is characterized as a balanced budget. There are various theories as to which government policy in relation to budgeting and in which economic situation is more preferable.

In decentralized finance, the concept of "budget" also has a certain distribution in its traditional sense as a document that systematizes all income and expenses of a given economic entity related to a certain period. Comparing income and costs, you can display various financial results - both intermediate and final. The budget, as a rule, is drawn up in cost estimates, however, in the practice of management accounting, there are exceptions to this rule. One example of a budget would be a profit and loss statement drawn up in forecast estimates; in other words, the structure of income and costs is used, provided for by the format of the reporting accounting form, but prepared on the basis of expected and (or) planned indicators. In the practice of Western companies, there is also the concept of a budgeted balance sheet, as a balance sheet drawn up at the end of the planning period and reflecting the expected (or planned as a guideline) state of the company's assets, capital and liabilities. The budgeted balance sheet and income statement form the basis of the so-called pro forma financial statements, developed in a large Western company in the process of financial planning of its activities. It is also known to understand the budget as a plan of work of the firm specified with the help of cost indicators; it is understood that the latter is not necessarily developed in terms of cost estimates. In large structured corporations, there may be a system of interconnected budgets, ordered by management levels, responsibility centers, production lines, etc.

In particular, one of the most common approaches to planning the current activities of a large firm is to build the so-called master budget, which is a system of interrelated operating and financial budgets. Operating budgets (these include the budgets of sales, production, raw materials, management and commercial expenses, etc.) are related to the planning and execution of current production activities; they are important primarily for line managers; financial budgets (these include budgets of cash, income and expenses, sources of formation and directions of distribution of financial resources) are of relatively great importance for top managers and management of the financial service. A description of budgets is given in [Kovalev, 2007(a)].

Obviously, both planning and budgeting are theoretically carried out with varying degrees of flexibility and variability in the initial parameters and (or) targets; in particular, two options for action are possible: a) the establishment of plan targets, the observance of which must be rigorous; b) establishment of corridors of possible variation of factors (target indicators) with subsequent adjustment of the values of the corresponding indicators.

It is the second option that seems to be preferable for large diversified industries that have capacity reserves and various options for their use, depending on the emerging market conditions. This option is implemented using the

10-1030 flexible budgeting topics. A flexible budget is a budget that has the following characteristics: 1) a target indicator is chosen (in principle, several indicators can be identified), to which other significant factors are tied; 2) formal dependencies between the target indicator and the main dependent factors are set; 3) a system of simulation modeling is provided, in which setting different values of the target indicator leads to the formation of multivariate budgets; 4) a feedback system is provided that allows making current adjustments to the total budgets. The volume of production (in physical units) is most often taken as a target indicator; in principle, a situation is possible when individual parameters are tied to different bases (this is necessary, for example, for the distribution of certain types of overhead costs). In addition, a certain basic version of the values of the main parameters is initially set, deviations from which vary during simulation.

Budgeting reflects the routine aspect of planning the company's activities and is implemented in a recurring mode with a given regularity. At the same time, in any company, from time to time there is a need to review the existing structure of production and choose a new direction for the development of the company. Its justification is carried out as part of business planning.

Business planning. The development strategy of any fairly large company involves a constant search for ways to improve its activities. This refers to the expansion of production volumes, increasing the efficiency of existing industries, introducing new technological lines, diversifying activities, entering new markets, etc. In other words, not only dynamic development, but also banal survival in a tough competitive environment are based on the following obvious thesis : even in the current, well-established production, it is necessary from time to time to introduce elements of innovation, novelty, routine additionality. As a rule, the totality of all actions to substantiate, develop, implement, implement and monitor innovations is clearly identified, formalized in some way and generally defined as business design. The key element in justifying the feasibility of the next business project is the procedure for drawing up a business plan.

A business plan is a document that reflects in a concentrated form the key indicators that justify the feasibility of a certain project, clearly and clearly revealing the essence of the proposed new direction of the company or the improvement being introduced. The process of writing a business plan is quite complex and requires the efforts of various departments of the company or the involvement of a third-party project organization. Financial indicators make up only a small, albeit very significant part of it. All of them, in fact, are presented in two forms: a profit and loss statement and a cash flow statement, compiled according to forecast data. The degree of detail of the data required in this case (for example, the nomenclature of items of production and distribution costs) is determined by the complexity of the project, the degree of confidentiality, the circle of people for whom the business plan is being drawn up, etc.

A strictly regulated structure of a business plan, of course, does not exist. It depends on the purpose of the business plan, the characteristics of the enterprise, products and other factors. The business plan should sufficiently clearly and convincingly highlight the following issues regarding the proposed business: a) the essence of the business (project); b) material, technical, resource and technological support; c) marketing activities; d) organization of the case, including its staffing; e) the degree of reliability and measures to improve it; f) financial support. One of the possible options for structuring a business plan might look like this:

Title page

Introductory part.

Features and status of the selected business area.

The essence of the proposed business (project).

Expected market quota and justification for its value.