Sample order on the formation of the budget of the enterprise. Order on planning the budget of funds

What questions will you find answered in this article?

Which companies do not like spending time on budgeting?

- How to create target indicators for the activities of departments

- What is the most important format for providing information within the budget process

- What is the relationship between strategic and budget planning

Budget planning is the CEO's tool for implementing the company's strategic plans for the coming year. Efficient budgeting systems, firstly, make it much easier for the company's management to plan and coordinate the activities of departments, which makes it possible to switch management resources to strategic planning; secondly, they make transparent all the activities of the departments and the resources they spend, which significantly (in my experience, up to 30%) increases the effectiveness of these activities.

Stages of formation of the company's annual budget

Which companies are not benefiting (or even harming) from budgeting

You should not waste time developing an annual and operating budget if your company has the following features:

    All strategic and operational decisions are made by the first person of the company (as a rule, from among the owners), powers and responsibilities are not transferred to lower levels of management. Such companies can be super efficient and well managed, and they do not need budgeting: it even gets in the way, creating the illusion of delegation and diverting valuable resources to unnecessary writing. This feature is inherent primarily in small companies, but some large firms also have it (over $ 500 million in annual turnover).

    The General Director of the company does not initiate budgeting procedures and does not participate in them, budgeting is imposed by financial and economic services. If this happens, budget planning and control ceases to be the tool of the CEO, turning into a tool of the financial director, and comes down to financial forecasting of future performance.

    The company does not have formalized goals and target values key indicators activities. On the pages of business publications, technologies such as "top-down budgeting", "bottom-up budgeting" and other theoretical patterns are often found. They have no practical meaning, since the very idea of ​​budgeting is that goals are set from above for the company and any department, and activities and resources are planned from below. Consequently, the absence of goals deprives budgeting of any meaning, turning a powerful tool into a "syndrome of vigorous activity" of individual managers.

    The company does not have a clear distribution of powers and responsibilities for achieving the target values ​​of key performance indicators and the allocation of resources within the financial and organizational structures management. As a result, there are no mechanisms to encourage employees to achieve targets and comply with resource spending limits.

    Definition of the general goals and objectives of the company.

    Determination of target values ​​of key performance indicators and standards for departments.

    Formulation and approval of assumptions.

    Preparation of action plans and budgets at the level of departments - responsibility centers and departments - functional centers.

    Consolidation of budgets into the consolidated budgets of the company.

    Consideration of action plans and budgets at a meeting of the budget committee, approval of changes and approval of the budget.

    Bringing budget indicators to performers. I will dwell on the key, most important, from the point of view of the General Director, the features of each stage.

Stage 1. Determination of the general goals and objectives of the company

Goals for the year are developed as part of strategic planning and are fixed in the macro plan of the company (see diagram). When using this approach, the company's budget is accepted only if it achieves the target values ​​for the year approved by the company's strategic plan. If such a budget cannot be drawn up, it is necessary to adjust strategic plan. The General Director of the company is responsible to the owners (Board of Directors) for achieving macro plan indicators. Most important indicators macro plan form the basis for calculating its bonus.

Stage 2. Determination of target values ​​of key indicators and standards

Stage 3. Formulation and approval of assumptions

For accounting purposes external factors and variables that have a significant impact on the formation of the budget, even before the development of the budget, your analysts need to formulate assumptions about changes in the external parameters of the environment. A forecast should be made regarding all factors significant for the company, for example:

    dynamics of exchange rates of major currencies against the ruble;

    price index for strategically important resources;

    tax rates;

    borrowing rates by sources of borrowing;

    the base discount rate for the company's future cash flows.

This procedure often includes the determination of the boundaries of the limiting fluctuations of external parameters. When they go beyond the established boundaries, the procedure for adjusting the budget is launched.

Stage 4. Preparation of action plans and budgets at the unit level

The General Director issues orders:

    on the beginning of the development of the annual budget of the enterprise;

    on the target values ​​of key performance indicators of the company and divisions for the coming year.

Based on these orders and forecast parameters external environment responsibility center managers should provide comprehensive annual plans events. Plans include the following data:

    the employee responsible for the implementation;

    terms of implementation;

    necessary resources;

    planned results and performance indicators of activities.

An example of an annual action plan ( SMART plan) of the unit is given in Table. 2 (taken from the practice of a company engaged in wholesale trade consumer goods). In my opinion, this document is the main one in the framework of budget planning and control procedures. On the basis of action plans, functional centers and responsibility centers must generate indicators for the annual budget, which is a set of interrelated budgets expressed in monetary and physical terms, and includes action plans for the year in monthly or quarterly detail.

Stage 5. Consolidation of budgets into the company's consolidated budgets

This step is technical. It is usually carried out by the financial and economic service of the company. The General Director must receive the consolidated budget within the period established by the regulations. The specialists responsible for the consolidation should be able to justify and decipher any indicator in the consolidated budget.

Stage 6. Consideration of action plans and budgets at a meeting of the budget committee. Coordination of changes. Budget approval

Step 1. Protection of budgets, then their coordination, completion and approval by responsibility centers. Here, once again, I would like to draw attention to the need to plan SMART activities in detail and determine the cost standards for their implementation (see an example of an annual unit plan - Table 2). Such planning makes the process of budgeting transparent and practically deprives the executors of the chances to overestimate the planned costs of their units. In addition, I recommend appointing as the chairman of the budget committee a leader who understands the essence of the most significant (to achieve strategic goals) and, at the same time, the most costly activities and will be able to coordinate them in a qualified manner (technical or commercial director, but not financial director).

Step 2 Consideration, balancing and adoption of the draft annual budget of the company by the executive body of the company.

Step 3 Approval of the annual budget as part of the annual plan.

Stage 7. Bringing budget indicators to the executors

All staff responsible for meeting budget targets must receive an approved budget (to the extent that it relates to their area of ​​responsibility). It is important that they clearly understand that from now on, their task is to achieve the key performance indicators set for their units within the approved financial plan.

Of course, even the best annual budget cannot remain the same throughout the entire period. From the first month of the new year, budgetary adjustments will have to be made. However, the mechanism of budget management within the framework of the year is a topic for another article.

Regulations for the formation of the budget for the year

Procedures

Responsible for the procedures of the division

Departments responsible for coordination

Units responsible for approving

results

Prerequisites for the formation of the annual budget

Collection and analysis of data on the execution of the budget of the preplanned reporting period

Department of Economics and Finance of the Criminal Code (note: hereinafter DEF)

Prepared "Consolidated management reporting GK for III quarter"

Collection and analysis of materials on the state of the market (external environment)

Before 29 September

Department of Marketing and strategic development UK, commercial department of UK (note: hereinafter referred to as DD)

Analytical forecast materials on market conditions and demand volumes

Collection and analysis of materials on available production facilities

Before 29 September

Production Department of the Criminal Code (note: hereinafter referred to as PD)

Materials on the status and possibilities available production capacity

Formation of the draft target values ​​of key performance indicators

Before 29 September

Management Board

Prepared draft target values ​​of key performance indicators

Approval of target values ​​of key performance indicators

Before 1 October

Management Board

Approved target values ​​of key performance indicators

Bringing the target values ​​of KPI to all interested departments and responsibility centers (note: hereinafter referred to as the CO)

Before 1 October

DEF, PD, KD

Bringing the target KPI values ​​to all concerned departments and COs

Preparation of plans and budgets

Preparation of a draft sales plan and a schedule of receipts from buyers (consolidated and separate for DH) based on the approved target KPI values

Before 15 October

CD, sales departments in CO, DEF

CD, sales departments in CO, Management Board

A prepared draft sales plan and a schedule of receipts from buyers (consolidated and separate for central heating)

Approval of the sales budget and the schedule of receipts from customers

Before 20 October

Management Board

Approved sales budget and schedule of receipts from buyers (consolidated and separate for DH)

Before 20 October

Communication of the approved sales budget and receipts schedule to all concerned departments and COs

Preparation of a draft production plan (consolidated and separate for central heating) based on the approved sales budget

Before 25 October

PD, responsible divisions in the Central Organ, DEF

PD, responsible units in the Central Organ, Management Board

Prepared draft production plan

Approval of the production budget (consolidated and separate for central heating)

Before 1 november

PD, DEF, UK Board

Management Board

Approved production budget (consolidated and separate for central heating)

Before 1 november

Communication of the approved production budget to all concerned departments and COs

Preparation of a draft procurement and supply plan, as well as a payment schedule for suppliers in accordance with the approved KPI values ​​​​and the production plan

Before 11 november

Department of Foreign Trade, DEF

Department of Foreign Trade, PD, Management Board

Prepared draft procurement and supply plan and supplier payment schedule

Approval of the procurement and supply budget (consolidated and separate for the Central Bank and other analysts)

Before 15 november

Department of Foreign Trade, DEF, Management Board

Management Board

Approved procurement and supply budget and supplier payment schedule

Before 15 november

Department of Foreign Trade, DEF

Communication of the approved procurement and supply budget and payments to suppliers to all concerned departments and COs

Preparation of plans for current costs and plans for current activities of the DH (taking into account the approved KPI values ​​​​and operating budgets)

Before 15 november

CA administrative directors or responsible divisions of the CA, DEF

Directors of the Central Organ, DEF, Management Board

Prepared cost plans and plans for current activities of the DH

Preparation of plans for current costs and plans for current activities of the departments of the Criminal Code of the Civil Code (taking into account the approved KPI values ​​​​and operating budgets)

Before 15 november

Heads of departments, DEF

Heads of Departments, DEF, Management Board

Prepared plans for operating costs and plans for ongoing activities of the MC

Approval of plans for current costs and plans for ongoing activities of the departments of the management company and the central district

Before 1 December

Heads of Departments, DEF, Management Board

Management Board

Approved plans for current costs and plans for ongoing activities of the departments of the MC and CO

Before 1 December

Heads of departments MC, DEF

Bringing approved plans for current costs and activities to all interested departments and COs

Program preparation investment projects(by department)

Before 9 December

Heads of departments of the UK, Directors of the Central Organ, DEF

Heads of MC departments, responsible employees of MC and AC departments, directors of AC, DEF, Management Board

Prepared draft investment programs

Investment budget approval

Before 14 December

Heads of departments, directors of the Central Organ, DEF, Management Board

Management Board

Approved investment budget

Before 14 December

Communicating the approved investment budget to all concerned departments and COs

Preparation of the financial activity budget

Before 19 December

DEF, Management Board

Prepared financial activity budget

Preparing a predictive traffic report Money direct method based on approved operating budgets

Before 20 December

Preparing a pro forma profit and loss statement based on approved operating budgets

Before 20 December

DEF, departments of the UK, CO, board of the UK

Prepared pro forma income statement

Preparing a pro forma cash flow statement using the indirect method

Before 20 December

DEF, departments of the UK, CO, board of the UK

Prepared pro forma cash flow statement

Preparing a pro forma balance sheet and a pro forma statement of cash flows based on approved operating budgets and prepared financial budgets

Before 20 December

DEF, departments of the UK, CO, board of the UK

Prepared pro forma balance sheet and statement of capital flows

Preparation of planned financial models of the annual budgets of the DH (based on the approved operating budgets)

Before 23 December

Directors of the Central Organ, DEF

DEF, departments of the UK, CO, board of the UK

Prepared planned financial models of DH annual budgets

Verification of annual financial budgets for compliance with target KPI values ​​(summary and separately for DH)

Before 28 December

DEF, departments of the UK, CO, board of the UK

Agreed annual financial budgets of the GC and AC

GC Annual Budget Approval

Before 29 December

DEF, UK Board

Management Board

Annual GC budget approved by the MC Board

An example of a macro plan for a company (industry - specialized retail)

Key performance indicators

Total (20… year)

Economics and finance

Total sales volume for the group of companies, rubles, incl.

Sales volume in direction 1

Sales volume in direction 2

VP1 (margin) total for the group of companies, rubles, incl.

Current costs without depreciation of the total for the group of companies, rubles, incl.

Current costs without depreciation in direction 1

EBITDA for the group of companies, rub.

NPAT for the group of companies, rub.

Investments in working capital by group of companies

Investments in long-term assets by group of companies

Normative IRR for investment projects, %

Clients and market

Number of active stores format 1 at the end of the period

Number of active format 2 stores at the end of the period

Staff

Wage indexation coefficient

Presence of a new department directorX

Business processes

Number of packages under own brands at the end of the period, SKU

Implemented information system

Implemented legal structure

Number of private labels

Share of sales of goods under own private labels

Implemented online sales system

Scheme of interconnections of budget indicators

Any company implementing budgeting must develop a regulation that establishes the rules for budget management for all departments, and, if necessary, extend it to new structures. Consider general principles the development of such regulations, as well as the approaches of various specialists to this issue.

The budget regulation is a set of intra-company documents and orders that describe budgeting in an enterprise. In many Russian companies, it is replaced by an order, which fixes the terms for compiling, approving and analyzing budget documents, and a collection of templates for such documents. The rest of the rules (the list of responsible persons, the procedure for analyzing budgets, etc.) that determine the budget process are agreed orally. However, with this approach, it is quite difficult to bring new employees up to date, monitor compliance with established rules(management has no grounds for formal penalties from non-executive employees), etc. Therefore, most budgeting experts recommend developing regulations for the budget process.

An example of a budget regulation

In JSC "Optima"(Moscow) regulations include:

  • Regulations on budget planning and annexes that contain the forms of budget documents used in the company (budget reports, requests for payment, etc.), as well as diagrams of the processes for compiling and approving budgets, a list of monthly, quarterly and annual budgets and those responsible for their formation ;
  • Regulations on staff motivation;
  • Regulations on the order of operational financial planning and execution of payments;
  • Regulations on the Budget Committee.

An example of the structure of the budget planning regulation

  1. Goals and objectives of the budget planning of the company.
  2. The procedure for the formation of budgets.
  3. Composition of participants in the budget process: from the head of the budget committee to the heads of all departments that make requests for expenses.
  4. Functions and responsibilities of persons participating in the budget process.
  5. The rights of participants in the budget process (the list of fields (documents) of the budget that are filled in by the participant in the process, the procedure for checking the completion and adjustment of these fields (documents), the rights to approve budget documents).
  6. The procedure and methodology for reviewing and adjusting budgets in case of significant deviations of planned indicators from actual ones.
  7. Analysis of budget execution.
  8. The procedure for approving the report on budget execution.

Contributed by Vladimir Novikov, Project Manager at Neumark

Elements of the budget regulation

General rules of budgetary activity. It is necessary to determine the goals for which budgeting will be introduced, as well as targets, taking into account which revenue and expenditure items of budgets are formed. This is done in order to establish the rules for generating reports on the work of the company, as well as the procedure for analyzing and adjusting budgets.

Description of responsibility centers. The description should contain the principles for dividing responsibility centers into CFD, CFU and cost centers, the forms of plans and annual reports that each center submits, as well as the rules for consolidating these documents into corporate reporting.

Definition of the budget period. The budget period is the period for which the main financial budgets are drawn up. Due to the difficulties that arise when collecting and submitting reports, including management reports, most Russian companies have a budget period of one quarter, but both practitioners and consultants consider a monthly budget to be the optimal period. Enterprises with a developed management system make budgets on a monthly basis (or every four weeks). The medium-term budget is formed for a year, less often - for three and five years.

Together with the budget period, the budget cycle is also established - the period after which planned and actual indicators are compared and subsequent budgets are adjusted. For example, if a company has an annual plan with a monthly breakdown, then variance adjustments can be made quarterly. This is done not only to improve the accuracy of the forecast, but also to determine how the company's result is influenced by individual factors, such as the work of employees, and the market as a whole. So, if there is a favorable market situation, the increase in sales for the quarter will be associated primarily with this factor, and not with the efforts of sales managers, and, therefore, higher returns can be required from sellers in the future.

Drawing up a budget schedule. It is necessary to determine in the regulations the terms of development, coordination, approval, consolidation and analysis of budgets of all levels. These terms should be sufficient for the formation of budget documents and their approval by the budget committee of the company. Responsible persons are appointed for each stage of the budget process, from the preparation to the approval of budget documents.

Analysis of execution and rules for adjusting budgets. Methods and terms for analyzing budget execution should be approved, the procedure for adjusting budget documents should be regulated, and a list of employees responsible for the analysis should be determined. The methodology may contain rules for analyzing deviations of actual indicators from planned ones, analyzing the structure of production and the dynamics of product sales, etc.

The procedure for motivating staff depending on budget indicators. This part of the regulation does not exist in all companies, but many experts consider it almost the main one, since it links budget execution with the remuneration of specific employees of the company.

Example. Position on budget planning of JSC "Optima" (fragment)

3. Approved targets

3.1. Target indicators determine in quantitative and cost terms the goals that shareholders set for the executive management of the enterprise for the coming year. In relation to these target indicators, the income and cost structure of the enterprise are planned and the necessary management decisions.

3.2. Target indicators are formulated in writing and communicated to the heads of services and departments in the Order on the development of the budget for the coming year. Targets include:

  • sales volume by products in natural terms;
  • net income from sales (net of discounts and VAT) by shipment method;
  • share of labor costs and average headcount by category;
  • the size of the repair fund and the repair plan in order of priority;
  • the structure of overhead costs for individual items;
  • net profit and profitability equity;
  • parameters of distribution of net profit (for dividends, investments, funds social development, incentives for executive management, etc.).

5. The procedure for preparing and approving the budget of the enterprise

5.1. CEO no later than 80 days before the start of the planning period by order on the enterprise brings to the heads of services and departments the targets for the coming year.

5.2. Not later than 70 days before the start of the planning period based on the approved target indicators, the commercial director develops and submits for approval to the economic department the Forecast of sales and revenue from customers.

5.3. Heads of departments - responsibility centers based on production plans and standards, using additional data on the costs of subordinate units and contracts with suppliers and contractors, etc., develop draft budgets of units and submit them for approval to the economic department no later than 30 days before the beginning of the planned year.

5.4. Economic department on the basis of the agreed budgets of divisions - responsibility centers and the sales budget, develops a draft budget of the enterprise, prepares an explanatory note for it and submits it for review to the members of the Budget Committee two days before the next meeting.

5.5. The Budget Committee considers the draft Budget of the enterprise and the Budgets of individual divisions - responsibility centers. The Budget Committee makes recommendations on adjusting budget indicators, on the basis of which changes are made to the budgets of divisions, within five days.

5.6. The final version of the Enterprise Budget must be submitted to the Board of Directors for approval. not later than 15 days before the beginning of the planned year.

7. Budgets of divisions - responsibility centers and the procedure for their formation

7.2. The structural unit of the enterprise acts as the center of responsibility, the head of which is empowered to make decisions on the use of enterprise resources (material, labor, financial) and is responsible for the implementation of established plans and benchmarks. The list of responsibility centers and the composition of planning and control indicators assigned to each of the divisions are determined by the decision of the General Director at the proposal of the Budget Committee.

10. Budget execution reports

10.1. The Cash Flow Budget Execution Report is prepared by the Finance Department on a daily/weekly basis and submitted to the CEO, Director of Economics and Finance, Head of the Economic Department on the following day/Monday morning. The report contains planned and actual indicators for the day/week and with accumulation from the beginning of the month for all forms of payment.

10.2. Reports on the execution of operating budgets and budgets of divisions are compiled by the economic department on a monthly basis no later than five days after the end of the reporting period. The report contains planned and actual indicators for the month and with accumulation from the beginning of the quarter.

10.3. Structural divisions, no later than the first day of each month, are obliged, at the request of the economic department, to submit certificates on the implementation of action plans and all the information necessary to analyze the reasons for the deviations of actual indicators from the plan (see table).

The procedure for submitting information when forming the budget of JSC "Optima" (draft)

Name of indicator/document Responsible for preparation and presentation Submission deadline (days before the beginning of the year) Responsible for coordination and approval
1 Formulating the main tasks and goals of the company for the coming year CEO 80 Budget Committee
Formulation of targets and assumptions (inflation, trends, prices and tariffs, cost of loans, etc.) Economic department 70
2 Forecast of sales of products in physical and cost terms, broken down by specific consumers in three versions: basic, optimistic, pessimistic. An explanatory note is attached to the forecast. Marketing department 70 Budget Committee
3 Production program finished products and semi-products in natural terms, broken down by departments (workshops) Economic department, VET, OGE 60 Production manager
Technological standards, energy consumption rates, overhead limits 60
4 The budget for sales of products based on the baseline forecast, separately for exports and the domestic market in physical and cost terms. Compiled separately for the nomenclature and buyers Sales department 60 Commercial Director
Schedule of receipt of payments from consumers for products shipped in the planned period, indicating the amount accounts receivable and forms of payment Financial department 50
... ... ... ... ...
17 Forecast profit and loss statement in full format (that is, including the distribution of profits to consumption funds and dividends) Economic department 20 Budget Committee
Calculation of taxable income (including benefits) and income tax Tax group 20 Chief Accountant
18 Investment project budgets, development programs Chief Specialists 50 Technical Director
List of investment projects in order of priority, indicating the direction of investment, terms, total cost and responsible executor Deputy technical director development 50 Budget Committee
Investment budget by investment area 30
19 Calculation of depreciation charges Accounting 25 Chief Accountant
20 The budget of credits and loans, separately for long-term and current liabilities with the calculation of interest on loans Financial department 20
21 Calculation of exchange rate and sum differences and currency conversion costs Economic department 20 Director for Economics and Finance
22 Cash budget (calculation budget) Financial department 15 Economic department
23 Forecast balance, calculation of changes in working capital, analysis financial indicators Financial department 15 Economic department
24 Analysis of budget indicators, compilation explanatory note Economic department 15 Budget Committee
Distribution of materials to members of the Budget Committee 15
25 Approval and adoption of the budget by the Budget Committee Budget Committee 10 CEO
Making agreed changes and adjustments to the original budgets Economic department, divisions 5 Direction directors
26 Approval of the budget by the Board of Directors of OJSC CEO 5 Board of Directors

Stages of drawing up a budget regulation

Vladimir Novikov, project manager at Neumark (Moscow)

Drafting of documents. At this stage, it is necessary to determine the formats of all documents required for the budget process, from requests for payments for operating activities to operating and financial budgets, as well as the rules for reconciling the operating and financial budgets of various CFDs. It should be taken into account that the planning system existing at the enterprise should allow, according to the rules understandable to employees, and within the required time frame, to submit the planning forms and reports necessary for the budget process.

Based on the analysis of a large number Russian enterprises it can be said that almost all enterprises cope with the development of operating budgets, including the budget of income and expenses. But with the preparation of financial budgets (budgets of accounts payable and receivables, as well as the cash flow budget and forecast balance sheet), most companies, especially industrial ones, experience serious difficulties.

This may be due to the fact that since the BDR gives the manager such important indicators as marginal and net profit for a period, this is often enough for effective management and financial budgets seem like an unnecessary ballast in the company's budget cycle. However, this happens until the manager is faced with a situation where the company has a profit for the period, but there is a constant shortage of funds. It is impossible to manage this situation on the basis of the BDR, since this budget does not provide information about the real flow of “live” money in the company. This is when the need for financial budgeting arises. There are other examples of negative consequences that the absence of financial budgets can lead to. Occurrence of cash gaps or unplanned expenses leading to an overestimation of the weighted average cost of capital, rupture of contractual relationships with suppliers and contractors (in the absence of an accounts payable budget), lost financial benefits due to late payments to suppliers, unmanaged financial leverage, suboptimal structure and turnover of receivables , overstocked.

Training of staff to work with budget documents. After developing a methodology for compiling and approving the formats of operational and financial budgets, it is necessary to train staff to work within the budget regulations. Without this, the successful setting up of a budget management system is impossible. An example is the experience of self-implementation of budgeting in a telecommunications company with many remote branches. In the course of implementation, budget forms were sent to the heads of branches without prior training by order of order to fill out. Accounting employees of various branches filled out these forms in their own way. As a result, it was not possible to obtain reliable consolidated financial statements for the company as a whole. In addition, since the "locals" did not understand the meaning of the budgets being filled, there was a negative attitude towards any initiatives of the central office. Implementation of budgeting was completed only after the head office specialists, with the help of consultants, prepared documents describing the budget process, trained branch employees in the basics of management accounting and budgeting, and formed a trial budget of the company together with them.

A trial budget is usually prepared for one month. In most cases, the figures of the trial budget may differ significantly (up to 50%) from the actual ones. At the same time, the preparation of a trial budget makes it possible to train a wide range of specialists to work within the framework of the budget cycle, to make the necessary adjustments to the developed budget regulations. The results of the trial budget execution should not entail any administrative action, as it is part of the process of adapting the company to new system management.

Mistakes made in the preparation of budget regulations

Wrong distribution of responsibility. Budget documents relating to operations (requests for payment, operating budgets for sales, production, administrative costs, etc.) must be completed by the staff responsible for their execution. Often this condition is not met - the budgets are filled by employees of the planning and economic department, and the performers themselves are not even aware of the existence of any plans.

Fragmentation of the budget cycle. Often, a company develops only some budgets that do not reflect all of its activities, such as the sales budget and RBS, and without breaking down indicators by department. Despite the fact that fragmented budgeting can take place at a certain stage in the development of budgeting, with this approach it is quite difficult to divide responsibility for the result of each department, not to mention activity planning and cost management.

The impossibility of promptly obtaining actual data. It happens that the company can receive actual data on budget execution for a certain period only by the end of the next month (and sometimes quarter) after the end of the period. This is usually due to the fact that the company does not have well-established processes for collecting and processing accounting information, and there is no automated management accounting system. An example is a company in which the adjustment of planned indicators due to the delay in actual data was only possible after two months (see figure).

Combining reporting forms. Sometimes, when developing budget forms, companies combine BDDS and BDR to simplify workflow. As a result, such serious distortions are possible, such as, for example, the definition of profit in the form of the difference between income accrued for the period from operating activities and cash flows from operating and investing activities. As a result, the company does not receive a full-fledged income and expense budget (that is, it cannot evaluate the effectiveness of operating activities) or a cash flow budget (that is, it cannot analyze future cash flow).

In conclusion, we note that in practice, not all companies pay enough attention to the written regulation of the budget process, and many rules are established in oral. In this regard, various problems are possible. For example, a system of employee motivation is often tied to the execution of budgets, and if from the very beginning a specialist does not understand why he can be rewarded or deprived of bonuses, he may set the wrong goals or simply evade responsibility.

Development of budget regulations for small enterprises

Nikolay Pereverzev, Financial Director of MXM Postavka LLC (Moscow)

Our company has the following rules for the preparation and approval of the budget. The manufacturing company submits a consolidated overhead budget for the plant by the 25th of each month (a tolling scheme is used, so all plant costs are equal to the cost of processing services plus a given planned operating profit). It is compiled in the context of cost items and production units, that is, according to the functional purpose of costs and according to the Central Federal District. The monthly budget is divided into ten-day - this is the minimum period for which the actual implementation of the budget is controlled. This budget goes to the CFO management company and reviewed for compliance with the annual budget. Then it is consolidated with the budget of the management company, after which the master budget is drawn up and approved.

During the budget period, plant divisions submit approved budget expenditure requests, which are monitored by the plant's financial director, and then sent to the management company for control and execution. Therefore, the amount of cash flow is calculated daily.

The financial director of the production company is responsible for the implementation of the overhead budget, and the financial director of MXM Supply LLC is responsible for the general corporate budget. In our understanding, the budget is not a dogma, and we allow deviations from planned indicators if they are justified and not critical.

There are no strict regulations on the analysis of budget execution, however, there are certain seasonal fluctuations in our business, for example, in the winter months, the consumption of gas and electricity increases sharply. These factors are analyzed and the winter budget adjusted accordingly. In addition, we try to constantly conduct end-to-end analysis. True, while the company exists only a year and a half and the available statistics are not enough. We cannot apply benchmark: our enterprise is the largest in Europe in the production of refrigeration equipment, and there are no analogues in the nearest regions. In this regard, a kind of “calibration” of expenses is now taking place.

I believe that the budgetary regulation as separate document is necessary if the enterprise (holding) consists of 3-4 production companies, for each of which a budget must be drawn up. In such holdings, there are several financial directors and each understands the process of budgeting in their own way, so a certain regulatory document makes it possible to make the work of all directors stable. If the number of such responsibility centers is not more than three, then the need for regulations fades into the background. Under these conditions, it is much easier to explain to each head of the Central Federal District what is required of him than to describe everything on paper. In addition, our structure is constantly changing, so drafting the budget process as a document will require a detailed description of all possible changes, otherwise employees will simply lose interest in it.

Formation of budget regulations. Example

Interview with CFO ZapSibGaz (Moscow) Olga Bychkova

- How was the development of the budget regulations in your company?

The rules governing our budgeting process are constantly evolving. The main work on the formation of the regulations was carried out in 2003. First of all, the needs of managers of different levels of management were taken into account, as well as financial service. Consumers of management information formulated what data and in what periods they would like to receive. Proceeding from this, forms of budget reports were prepared and the frequency of their compilation was fixed. Of course, at first it was necessary to establish some “rules of the game”: highlight the principles of financial planning, centers of financial responsibility, explain to employees how the head of the CFD differs from the general director of a legal entity. Only after that it was possible to create a full-fledged and transparent system of planning and reporting.

- What are the terms of preparation of budgets and the budget period in your company?

Budgets for the next month are formed from the 25th to the 28th of each reporting month. At the same time, a forecast balance is drawn up, which is subsequently adjusted, since fluctuations in the balance sheet currency of the current month can reach 10% over five days. BDDS and BDR are compiled monthly, and BDDS - broken down into decades.

I especially want to say about obtaining actual data. At first, we separated reporting by branches and by the management company, which is located in Moscow. The cash flow statements of the management company are compiled daily, and the statements of branches, due to their remoteness and poor communication channels, we receive once a decade. Today, in connection with the commissioning of a new information system it is planned to receive all information about the cash flow daily, and the final BDDS will be formed on the last day of the month. The actual result of the BDR execution is formed on the 5th day of the month following the reporting one. This allows you to include in the report all the documents received for the period.

In addition, the company draws up a business plan for each CFD for a year, broken down by month; its execution is monitored quarterly.

- Is there a methodology for analyzing and adjusting budgets?

Yes, based on the results of monthly work, an analysis of budget execution is carried out. If there are deviations of the actual data from the budget ones by more than 5%, the heads of the respective CFD justify each deviation in the explanatory notes. A comparative analysis of budget execution in relation to previous periods is also carried out. According to the results of the quarter, the Board of Directors of the company controls the implementation of the annual business plan in the context of each CFD. At the same time, no adjustments are made to the business plan, since the change is reflected in the operational plan (planning horizon - 1 month). If the Central Federal District shows negative deviations of actual indicators from planned ones by more than 5% within a quarter, then its head must submit a plan to correct the situation to the Board of Directors.

Now we are developing additional standards for permissible deviations of actual indicators from budget ones in order to delineate responsibility for decision-making between the leaders of the Central Federal District different levels. Thus, the head of the CFD of the fourth level (the lowest in the hierarchy of the company) can make decisions regarding amounts not exceeding 5% of the total budget of his CFD for the period. A positive deviation from the budget, when the CFD improves performance, is reflected in an increase in motivational payments.

- Who is responsible for the preparation and execution of budgets?

The main responsibility lies with the leaders and financial directors of the CFD. The lower level of budgeting is financial managers or other performers of the Central Federal District. The delegation of responsibility for one or another stage of the budget process within the Central Federal District is carried out by its immediate supervisor.

- Does it depend wage managers of the company from the results of the activities of the Central Federal District?

Of course, it is divided into fixed and variable components. True, approaches to the motivation of leaders have changed. The bonuses for some CFDs were tied to the profits of the projects in which they participated. In other divisions, the basis for remuneration could be, for example, the annual salary, in the third - the sales turnover. Now CFDs, which are cost centers, are rewarded based on cost savings: the lower the costs for a given level of product / service quality (it is additionally controlled), the higher the remuneration. Profit centers are focused on profit maximization, investment centers - on effective investment management. There are also accounting centers - divisions that have not yet been allocated to financial responsibility centers. For them, the motivation system is based so far only on the degree of fulfillment. functional duties. This is due to the fact that work on including them in the overall budget process has not yet been completed.

Your enterprise is currently implementing an automated system for management accounting and budgeting. Are you not afraid that the rules that are incorporated into this system may become outdated due to the rapid pace of development of the company?

When constructing this system, one of important criteria there was flexibility, that is, the ability to adjust it in accordance with the ongoing changes. I do not think that the principles of our budgetary regulations will change drastically. Some reporting forms, indicators, rules of motivational calculations, structure or staffing holding company, but not the general principles of work, such as direct costing management, the method of dividing into the Central Federal District, etc. But if these rules change, of course, we will have to redo the budget regulations and seriously reorganize automated system budgeting. However, I want to emphasize that if such changes are required to optimize the business management system as a whole, then we will develop the necessary measures for this and make these changes to the system. But since such adjustments will require a significant investment of time and a special system for comparing current and old data, it is desirable that they be made from the new reporting period (year). Start off new life better from the new budget period.

The material was prepared by the expert of the journal Anna Netesova

An example of a budgeting provision for the ATB Group of Companies

Title page.

Page 1.

Page 2


Page 3

1. GENERAL PROVISIONS

1.1. Basic terms and abbreviations:

The company is GC "ATB".

The Budget and Investment Committee is the Company's budget management body that makes decisions on approval and adjustment of the Company's budgets.

Primary project budget - a budget created by the Project Manager that has not been approved by the Budget and Investment Committee.

Primary approved project budget - the primary budget that has been approved by the Budget and Investment Committee.

The consolidated budget of the Company's projects is the aggregate of all primary budgets of the Company's projects supervised by the Deputy General Director for Production.

The consolidated budget of the Company is the totality of all budgets of the Company, presented in the form of a budget cash flows, profit and loss budget, budget balance, not approved by the Budget and Investment Committee.

The Consolidated Approved Budget of the Company is the consolidated budget approved by the Budget and Investment Committee.

1.2. The purpose of the Company's budgeting is the effective management of the Company's cash flows by creating, controlling, analyzing and adjusting project budgets with the allocation of budgets for general business expenses and budgets capital investments.

1.3. Tasks solved in the course of the Company's budgeting:
1.3.1. creation of project budgets;
1.3.2. creation of budgets for general business expenses;
1.3.3. creation of capital investment budgets;
1.3.4. adoption of consolidated budgets;
1.3.5. budget execution control;
1.3.6. analysis of budget execution;
1.3.7. budget adjustments.

1.4. The participants of the Company's budgeting are:
1.4.1. Project Budget Holders – Project Managers.
1.4.2. Curator of the consolidated budget of the Company's projects - Deputy General Director for Production.
1.4.3. The holder of budgets for general business expenses and capital investment budgets is the Deputy General Director for the economic part.
1.4.4. The chief controller of the implementation of the consolidated approved budget of the Company is the Deputy General Director for Economics and Finance.
1.4.5. Members of the Budget and Investment Committee - General Director of the Company, Deputy General Director for Production, Deputy General Director for Economics and Finance, Deputy General Director for Economic Affairs.

2. BUDGET SCHEDULE

2.1. Budget start date next year- September 1 of the current year.
2.2. In the period from September 1 to September 15 of the current year, the Budget Holders are required to submit primary budgets for consideration by the members of the Budget and Investment Committee.
2.3. In the period from September 16 to September 30, the Budget and Investment Committee adopts primary budgets and approves the Draft Consolidated Budget.
2.4. In the period from October 1 to October 15, the General Director of the Company shall coordinate the Draft Consolidated Budget with the shareholders of the Company.
2.5. Between 1 and 14 December, Budget Holders make adjustments to the Draft Consolidated Budget.
2.6. In the period from December 16 to 23, the Budget and Investment Committee adopts the consolidated approved budget.
***
3. RIGHTS AND OBLIGATIONS OF BUDGETING PARTICIPANTS

3.1. Project budget holders are required to:
3.1.1. timely submit project budgets for consideration by the Budget and Investment Committee;
3.1.2. Execute approved project budgets;
3.1.3. timely report on the execution of project budgets to the Budget and Investment Committee;
3.1.4. if it is found impossible to fulfill the project budget, inform the Budget and Investment Committee in a timely manner;
3.1.5. timely adjust project budgets if necessary.

3.2. Project budget holders have the right to:
3.2.1. require the Budget and Investment Committee to provide projects with the resources specified in the primary approved budgets;
3.2.2. make reasonable proposals for adjusting the initial approved project budgets in case of failure to provide projects with the resources specified in the initial approved project budgets.
3.2.3. submit proposals for adjusting the primary approved project budgets to the Budget and Investment Committee.

3.3. The curator of the consolidated budgets of the Company's projects is obliged to:
3.3.1. control the timeliness of the transfer of primary project budgets for consideration by the Budget and Investment Committee;
3.3.2. timely fulfill the instructions of the Budget and Investment Committee to adjust the primary budgets of projects;
3.3.3. if it is impossible to fulfill the consolidated budget of the Company's projects, inform the Budget and Investment Committee in a timely manner.

3.4. The curator of the consolidated budgets of the Company's projects has the right to:
3.4.1. require the Budget and Investment Committee to provide projects with the resources specified in the primary approved budgets;
3.4.2. make reasonable proposals for adjusting the primary approved project budgets in the event that the project is not provided with the resources specified in the primary approved budgets;
3.4.3. require execution of the approved budgets from the Holders of the primary approved project budgets;
3.4.4. make proposals to stimulate the Holders of the primary approved project budgets.

3.5. The holder of budgets for general business expenses and capital investment budgets is obliged to:
3.5.1. timely submit budgets for general business expenses and capital investment budgets for consideration by the Budget and Investment Committee;
3.5.2. execute approved budgets for general business expenses and budgets for capital investments;
3.5.3. timely report on the execution of budgets for general business expenses and capital investment budgets to the Budget and Investment Committee;
3.5.4. upon detection of the impossibility of fulfilling the budgets for general business expenses and budgets for capital investments, inform the Budget and Investment Committee in a timely manner;
3.5.5. make timely adjustments to the budgets of general business expenses and budgets of capital investments, if necessary.

3.6. The holder of budgets for general business expenses and capital investment budgets has the right to:
3.6.1. require the Budget and Investment Committee to provide the resources specified in the primary approved budgets;
3.6.2. make reasonable proposals for adjusting the approved budgets for general business expenses and capital investment budgets in case of failure to provide the resources specified in the approved budgets for general business expenses and capital investment budgets;
3.6.3. submit proposals for adjusting the budgets for general business expenses and capital investment budgets to the Budget and Investment Committee;
3.6.4. make proposals to stimulate the Company's employees who have influenced the execution of the approved budgets for general business expenses and capital investment budgets.

3.7. The chief controller of the implementation of the consolidated approved budget of the Company is obliged to ensure in a timely manner:
3.7.1. control over the implementation of the consolidated approved budget;
3.7.2. notification of interested parties in non-execution of the consolidated approved budget;
3.7.3. analysis of the reasons that led to the non-execution of the consolidated budget;
3.7.4. providing information necessary for participants in the budgeting process to fulfill their duties.

3.8. The chief controller of the implementation of the consolidated approved budget of the Company has the right to:
3.8.1. require participants in the budgeting process to provide timely information necessary for the implementation of their duties;
3.8.2. suspend the provision of resources to approved budgets in cases of non-performance of their duties by the Budget Holders, as well as in cases of non-execution of budgets;
3.8.3. make proposals to stimulate the Company's employees who have influenced the execution of the Company's consolidated budget.

3.9. Composition and powers of the Budget and Investment Committee:
3.9.1. The members of the Budget and Investment Committee of the Company are the General Director of the Company, Deputy General Director for Production, Deputy General Director for Economics and Finance, and Deputy General Director for Economic Affairs.
3.9.2. The Chairman of the Budget and Investment Committee of the Company is the General Director of the Company. The Chairman of the Budget and Investment Committee has a decisive vote when voting on issues within the competence of the Budget and Investment Committee.
3.9.3. All decisions within the framework of the powers of the Budget and Investment Committee shall be made by direct open voting. Decisions of the Budget and Investment Committee are formalized by orders of the General Director for the Company.
3.9.4. The Budget and Investment Committee makes the following decisions:
3.9.4.1. the timing of all budgets;
3.9.4.2. on the approval of all budgets and reports on them;
3.9.4.3. on the adjustment of all budgets;
3.9.4.4. to amend this provision.
3.9.5. Decisions on incentives for all participants in the budgeting process are made exclusively by the General Director.
3.9.6. The Budget and Investment Committee meets at least once a month.
3.9.7. Any member of the Budget and Investment Committee may initiate a meeting of the Budget and Investment Committee. The decision on the specific time and place of the meeting of the Budget and Investment Committee is made by the General Director.

4. BUDGETING METHODS

4.1. Methods for collecting and controlling primary information on project budgets, their protection, control, analysis and adjustments are as follows:
4.1.1. Project budget holders draw up project budgets in the form specified in Appendix No. 1. The basis for budgeting is the Order of the General Director on budgeting. Also, the budget is drawn up when signing contracts for all research work and practical developments.
4.1.2. Holders of project budgets under the item "Employee man-hours" indicate the decoding of the man-hours of specific employees on a monthly basis. If the indication of specific employees is not possible, then the Project Budget Holders conduct a breakdown by man-hours of employees, indicating specific laboratories.
4.1.3. Holders of project budgets under the item "Materials and special equipment" indicate the breakdown by specific types materials and special equipment monthly. In the indicated cost necessary materials and special equipment must include the cost of delivery, installation and other costs necessary for the final use of materials and special equipment in the project.
4.1.4. Holders of project budgets under the item “Subcontracting work” indicate the decoding for specific subcontractors on a monthly basis with a brief indication of the type of work.
4.1.5. Holders of project budgets under the item "Other expenses" indicate a breakdown for specific types of expenses that are not related to the above expense items.
4.1.6. Holders of project budgets under the item "Receipts" indicate a breakdown of the receipts of funds on a monthly basis in the context of contracts and sources of financing (if there are more than one). When planning receipts, Budget Holders must take into account the likely dates for the delivery of work and the current time for accepting work and making payments by a particular customer.
4.1.7. Project budget holders under the item “Scheduled signing of acts” indicate a breakdown for specific stages of work (if these works are activated separately) indicating the specific amount of the act on a monthly basis. This information is used in the preparation of the Consolidated Budget of Income and Expenditures.
4.1.8. The control over the drafted primary budgets of projects is carried out by the Curator of the consolidated budget of the Company's projects - the First Deputy General Director for scientific work. The curator of the consolidated budget of the company's projects has the right to make adjustments to the primary budgets of projects and assign priorities to projects, of which he notifies the Project Holders. If the Holders of the primary budgets of projects do not agree with the adjustments made and the assigned priorities, the Holders of the primary budgets have the right to apply to the Budget and Investment Committee.
4.1.9. The curator of the consolidated budget of the Company's projects, with the help of the Financial and Economic Department of the company, draws up the consolidated budget of the Company's projects (Appendix No. 2). In this budget, the item “Employee man-hours” is replaced by the item “Wage fund with taxes”, in which employee man-hours are converted into payroll costs with all necessary taxes and deductions to the payroll fund. According to the summary item "Expenses" it is calculated total amount direct costs for ongoing projects on a monthly basis.
4.1.10. The curator of the consolidated budget of the Company's projects submits the consolidated budget of the Company's projects for approval to the Budget and Investment Committee.
4.1.11. The Budget and Investment Committee in the process of approving the consolidated budget of projects has the right to make adjustments. Adjustments can be made in two stages: at the first review of the consolidated budget of the projects and after the coordination of the consolidated budgets of the Company of the General Director with the shareholders of the Company.
4.1.12. The consolidated budget of projects, as well as project budgets, are considered approved after the signing of the Order of the General Director on the approval of the Company's budgets.
4.1.13. Budget holders are required to report to the Curator of the consolidated budget of projects on the execution of approved project budgets on a monthly basis no later than the second working day after the end of the month. Budget holders are required to keep accumulative reports on the execution of approved budgets in the form specified in Appendix No. 3. In the report to the Curator of the consolidated budget of projects, the most probable adjustments must be indicated.
4.1.14. Based on the submitted reports on the implementation of the primary approved budgets, the Supervisor of the consolidated budget, with the help of the Financial and Economic Department of the company, draws up a report on the implementation of the consolidated budget of the Company's projects (Appendix No. 4).
4.1.15. Based on the report on the execution of the consolidated budget of the Company's projects, the Budget and Investment Committee makes decisions on budget adjustments and additional instructions to budget holders.

4.2. Methods for collecting and controlling primary information of budgets for general business expenses and capital investment budgets, their protection, control, analysis and adjustments are as follows:
4.2.1. The holder of budgets for general business expenses and capital investment budgets draws up project budgets according to the forms specified in Annexes No. 5 and 6. The basis for budgeting is the Order of the General Director on budgeting.
4.2.2. The control over the budgets for general business expenses and budgets for capital investments is carried out by the General Director of the Company.
4.2.3. The holder of budgets for general business expenses and capital investment budgets submits these budgets for approval to the Budget and Investment Committee.
4.2.4. The Budget and Investment Committee in the process of approving these budgets has the right to make adjustments. Adjustments may be made in two stages: at first review and after agreement of the Company's consolidated budgets of the CEO with the shareholders of the Company.
4.2.5. Budgets for general business expenses and budgets for capital investments are considered approved after the signing of the Order of the General Director on the approval of the budgets of the Company.
4.2.6. The holder of budgets for general business expenses and capital investment budgets is obliged to report to the General Director on the execution of approved budgets on a monthly basis no later than the second business day after the end of the month.
4.2.7. Based on the report on the execution of budgets for general business expenses and capital investment budgets of the Company, the Budget and Investment Committee makes decisions on budget adjustments and additional instructions to the Holder of these budgets.

4.3. Methods for collecting and controlling the primary information of the company's consolidated budgets, their protection, control, analysis and adjustments are as follows:
4.3.1. Based on the consolidated project budget, budgets for general business expenses and capital investment budgets submitted to the Budget and Investment Committee, as well as the Company’s statistical data for the previous year, the Financial and Economic Department of the Company draws up the Consolidated Budget of the Company - the totality of all budgets of the Company, presented in the form of a cash flow budget, profit and loss budget, budget balance.
4.3.2. Forms of cash flow budgets, profit and loss budget, budget balance sheet are approved by the Company's shareholders (based on the holding's business planning standard).
4.3.3. The Company's consolidated budget is primary statement at the Budget and Investment Committee.
4.3.4. After the approval of the Consolidated Budget of the Company, the General Director will coordinate the said budget with the shareholders of the company.
4.3.5. If there are adjustments from shareholders, the General Director convenes the Budget and Investment Committee, which considers options for adjusting the consolidated budget of projects, budgets for general business expenses and budgets for capital investments.
4.3.6. The final version of the Consolidated Budget of the Company for the next year is approved by the General Director of the Company no later than December 30 of the current year.
4.3.7. The report on the execution of the consolidated budget is submitted by the Financial and Economic Department of the Company to the Budget and Investment Committee no later than the tenth day of the month following the reporting month.
4.3.8. Based on the report on the execution of the Company's consolidated budget, the Budget and Investment Committee makes quarterly adjustments to the Company's consolidated budget and (as a result) the consolidated project budget, general business expenses budgets and capital investment budgets.

5. INCENTIVE BUDGETING PARTICIPANTS

5.1. Incentives for budgeting participants consist of two parts: incentives in the process of creating the annual budget and incentives in the process of executing the annual budget.
5.2. In the process of creating the annual budget, the main incentives for participants in the budgeting process are:
5.2.1. bonuses for early submitted budgets in the amount of 20% of monthly salary;
5.2.2. fines for failure to meet deadlines for budgets in the amount of 1% for each fact of violation of the procedures established by this Regulation.
5.3. In the process of executing the annual budget, the main incentives for participants in the budgeting process are:
5.3.1. bonuses for budget execution with deviations of no more than 5% on key budget indicators in the amount of 20% of the monthly salary. Key budget indicators are determined by the Budget and Investment Committee;
5.3.2. fines for disruption of reporting procedures in the amount of 1% for each fact of violation of the procedures established by this Regulation;
5.3.3. fines for non-fulfillment of approved budgets in the amount of 1% of salary for each percentage deviation in excess of 5% on key indicators;
5.3.4. an exceptional measure is the suspension by the Chief Comptroller of the Consolidated Approved Budget (Deputy General Director for Economics and Finance) of providing resources to the approved budgets in cases of non-fulfillment of their duties by the Budget Holders, as well as in cases of non-execution of budgets.
5.4. Proposals on incentives for budgeting participants may be proposed to the General Director by all members of the Budget and Investment Committee. Incentive measures for participants in the Company's budgeting process are approved by the General Director of the Company.

6. FINAL PROVISIONS

6.1. This Regulation shall enter into force upon signing by the General Director of the Company of an order approving this Regulation.
6.2. Changes to this provision may be made by the General Director of the Company in agreement with the members of the Budget and Investment Committee.

Distance learning on this topic

Do you want to be trained on this topic and download the Template of this Regulation?
Choose in the section "Trainings with checking homework"
Training №9 "Budgeting of small and medium-sized businesses from A to Z".

What questions will you find answered in this article:

  • Which companies are bad for spending time on budgeting
  • How to create target indicators for the activities of departments
  • What is the most important format for providing information in the budget process
  • What is the relationship between strategic and budget planning

    Budget planning is the CEO's tool for implementing the company's strategic plans for the coming year. Effective budgeting systems, Firstly, radically facilitate the planning and coordination of the activities of departments for the company's management, which allows you to switch management resources to strategic planning; Secondly, they make transparent all the activities of the departments and the resources they spend, which significantly (in my experience, up to 30%) increases the effectiveness of these activities. See also: Which companies do not benefit from budgeting (or even harm).

    Stages of formation of the company's annual budget

    1. Definition of the general goals and objectives of the company.

    2. Determination of target values ​​of key performance indicators and standards for departments.

    3. Formulation and approval of assumptions.

    4. Preparation of action plans and budgets at the level of departments - the center of responsibility and departments - functional centers.

    5. Consolidation of budgets into the consolidated budgets of the company.

    6. Consideration of action plans and budgets at a meeting of the budget committee, approval of changes and approval of the budget.

    7. Bringing budget indicators to the executors.

    I will dwell on the key, most important, from the point of view of the General Director, the features of each stage.

    Stage 1. Determination of the general goals and objectives of the company

    Goals for the year are developed as part of strategic planning and are fixed in the company's macro plan (see. scheme). When using this approach, the company's budget is accepted only if it achieves the target values ​​for the year approved by the company's strategic plan. If such a budget cannot be drawn up, the strategic plan must be adjusted. The General Director of the company is responsible to the owners (Board of Directors) for achieving macro plan indicators. The most important indicators of a macro plan form the basis for calculating its bonus.

    Scheme. Relationship between strategic and budget planning

    Stage 2. Determination of target values ​​of key indicators and standards

    Based on the approved target values ​​of the macroplan, the General Director, by issuing appropriate orders, brings the target values ​​of key performance indicators and standards to the lower units. The formation of the company's annual budget is carried out within the framework of the financial structure - a set of functional centers (for example, sales service, production), responsibility centers (for example, an assembly shop, a production shop) - and a distribution system between the components of this structure of authority and responsibility for planning, execution and control budget indicators. Functional centers are created for centralized management (rationing, planning, control and analysis of emerging deviations) of the articles of the company's consolidated budget. Responsibility centers directly carry out business operations in accordance with approved plans. As part of the annual planning, they form budget plans and execute them based on the target values ​​of key performance indicators and standards set by the functional centers 1 .

    IN tab. 1 an example of grouping key performance indicators of a large Russian company(industry - mechanical engineering). The top level of indicators is the responsibility of the General Director. These indicators are approved in the macroplan. The second level is the area of ​​responsibility of the heads of functional centers; target values ​​are brought to them on the basis of the approved macroplan. The lower level is the performance indicators of responsibility centers.

    Indicator group level

    Overall business performance indicators (macro plan)

    1. Financial condition and performance

    2. Customer satisfaction

    3. Innovation and learning

    Performance indicators of departments - functional centers

    5. Storage and movement

    8. After-sales service

    13. Economics and finance

    14. Information technology

    Performance indicators of units - responsibility centers

    15. Production volume

    17. Resource efficiency

    18. Production costs

    21. Profit. Profitability

    22. Inventory management efficiency

    23. Non-current assets and investments

    An important element of the budget planning and control system is rationing - a system of technically and economically justified target values ​​of variables that have a direct impact on certain functional plans and budget items 2 . The regulations allow:

    • increase transparency in the calculation of key performance indicators and the resource needs of responsibility centers;
    • create a formal mechanism for the redistribution of resources between responsibility centers; ± evaluate the validity of the level of income, costs, stocks and other indicators in action plans.
    • Stage 3. Formulation and approval of assumptions

      In order to take into account external factors and variables that have a significant impact on the formation of the budget, even before it is developed, your analysts need to formulate assumptions about changes in the external parameters of the environment. A forecast should be made regarding all factors significant for the company, for example:

      • dynamics of exchange rates of major currencies against the ruble;
      • price index for strategically important resources;
      • tax rates;
      • borrowing rates by sources of borrowing;
      • the base discount rate for the company's future cash flows.
      • This procedure often includes the determination of the boundaries of the limiting fluctuations of external parameters. When they go beyond the established boundaries, the procedure for adjusting the budget is launched.

        Which companies are not benefiting (or even harming) from budgeting

        You should not waste time developing an annual and operating budget if your company has the following features:

  1. All strategic and operational decisions are made by the first person of the company (as a rule, from among the owners), powers and responsibilities are not transferred to lower levels of management. Such companies can be super efficient and well managed, and they do not need budgeting: it even gets in the way, creating the illusion of delegation and diverting valuable resources to unnecessary writing. This feature is inherent primarily in small companies, but some large firms also have it (over $ 500 million in annual turnover).
  2. The General Director of the company does not initiate budgeting procedures and does not participate in them, budgeting is imposed by financial and economic services. If this happens, budget planning and control ceases to be the tool of the CEO, turning into a tool of the financial director, and comes down to financial forecasting of future performance.
  3. The company does not have formalized goals and target values ​​of key performance indicators. On the pages of business publications, technologies such as "top-down budgeting", "bottom-up budgeting" and other theoretical patterns are often found. They have no practical meaning, since the very idea of ​​budgeting is that goals are set from above for the company and any department, and activities and resources are planned from below. Consequently, the absence of goals deprives budgeting of any meaning, turning a powerful tool into a "syndrome of vigorous activity" of individual managers.
  4. The company does not have a clear distribution of powers and responsibilities for achieving the target values ​​of key performance indicators and the allocation of resources within the financial and organizational management structures. As a result, there are no mechanisms to encourage employees to achieve targets and comply with resource spending limits.
  5. Stage 4. Preparation of action plans and budgets at the unit level

    The General Director issues orders:

  • on the beginning of the development of the annual budget of the enterprise;
  • on the target values ​​of key performance indicators of the company and divisions for the coming year.
  • Based on these orders and the forecast of the parameters of the external environment, the heads of responsibility centers must provide comprehensive annual action plans. Plans include the following data:

    • name of the event;
    • a link to the policy of the functional strategy within which the activity is planned (or to another internal document regulating the activity);
    • the employee responsible for the implementation;
    • terms of implementation;
    • necessary resources;
    • planned results and performance indicators of activities.
    • An example of an annual action plan (SMART plan 3) for a unit is given in tab. 2(taken from the practice of a company engaged in the wholesale trade of consumer goods). In my opinion, this document is the main one in the framework of budget planning and control procedures.

      On the basis of action plans, functional centers and responsibility centers must generate indicators for the annual budget, which is a set of interrelated budgets expressed in monetary and physical terms, and includes action plans for the year in monthly or quarterly detail.

      Budget Process: Approval Orders and Drafting Forms

      It is convenient to make a budget in the program:

      Enterprise budgeting. Planning. Reporting

      Planning is one of the most important processes in economic activity enterprises. The preparation and implementation of budget plans allows you to rationally allocate the company's resources and achieve the planned strategic goals.

      Enterprises develop special budget regulations that regulate the tasks, necessity and procedure for budgeting, allow the consideration and approval of budgets to be turned into a systemic multi-stage process.

      The procedure for developing budgets and their execution:

    • Drafting a project
    • Project review
    • Statement
    • Execution
    • Consideration and approval of the report on budget execution
    • The stages of formation of local, regional and federal budgets are similar to the stages of planning at economic enterprises.

      Principles for the formation of budget regulations

      Planning regulations can be formed on the basis of various principles.

      1. The "market principle" involves the formation of a profitable part on the basis of sales plans. Based on the volume of planned income, the expenditure part is calculated. It displays volume necessary resources needed to generate income. This approach is optimal for enterprises that have the ability to predict sales volumes with a certain level of detail and have clear mechanisms for interacting with counterparties.

      2. "Principle from what has been achieved." This approach to planning is suitable for companies with stable performance. As a basis for budgeting, indicators of the current or previous periods are taken. This method is quite simple and allows you to plan the revenue and expenditure parts with a high probability of accurate execution.

      3. "Principle from production." This approach is most suitable manufacturing enterprises manufacturing non-standard products. In this case, planning is complicated by the fact that orders can be unique, the volumes and cost of each of them differ significantly. The desired growth in the volume of production, which is measured in physical terms, is taken as the basis for budgeting.

      Having decided on the principle, companies can begin to form regulations.

      The procedure for approving the budget and its consideration. Planning stage

      The process of preparing budgets begins with the identification of responsible persons:

      A certain employee appointed by the head of the CFD can prepare a draft budget. Responsible for the execution are managers of various levels, depending on the type of budget (CFD, business area, enterprise as a whole).

      Budgets are approved by special collegiate bodies - budget committees.

      All planning stages are carried out in accordance with calendar plan. The regulations for the consideration and approval of the company's budgets in Moscow or another city of the Russian Federation reflects all stages of planning, those responsible for implementation, the functions of the budget committee, deadlines and other executive aspects.

      Stage

      Responsible for implementation

      www.1cashflow.ru

      Order on the preparation of the budget sample

      When the quantity financial resources limited, the company must rationally distribute its assets - this is the only way they can be preserved and increased. This helps the financial plan of income and expenses for a certain period of time, in other words, the budget. But one is not enough. Along with the budgeting process, it is necessary to establish budget management - a system of accounting, control, analysis of planned and actual data. It is necessary in order to track deviations from the plan in a timely manner and then take corrective actions.

      Budget management is a planning process, which is a periodically recurring procedure for the formation, approval, approval and execution of budgets, analysis and control of their execution (see table 1). As a result, the company must develop four main budget forms:

  1. Income and expense budget(BDR) - budget form, reflecting the composition and amount of income and expenses in the planning period.
  2. Cash flow budget(BDDS) - a budget form that reflects the receipt and payment of funds in the planning period.
  3. balance sheet budget(BBL) - a forecast report on the value of property and liabilities of the company, presented in tabular form. BBL is the resulting budget. With a correct financial accounting model, it is formed on the basis of the BDR and BDDS.
  4. Payment schedule- a form that reflects the planned distribution of cash flows in the short term. It is compiled in order to ensure the continuous process of the financial and economic activities of the company. Formed monthly with a weekly breakdown by days of payment

Periods and intervals of budget planning

Each company has the right to choose the most suitable periods and planning intervals for its activities. Generally accepted periods of budget planning:

  • annual, formed for a year with a planning interval of a month/quarter;
  • quarterly, formed for one quarter with a planning interval of a month / week;
  • monthly, formed for one month with a week/day planning interval.
  • Depending on the company's activities, seasonality and other conditions, the budget planning period may coincide with the calendar period, or may be established by the company's regulatory and administrative acts.

    For operational management, budgets with a sliding period are formed. For example, for the next 12/24/36 months monthly/quarterly.

    Table 1. Participants in the budget process

    An example of the Regulations of the enterprise budgeting system

    1. The goals of the enterprise budgeting system

    The goals of creating a budgeting system:

  • Cost Management
  • Evaluation of the plan and the fact of the financial result
  • Asset and liability management
  • Evaluation of the effectiveness and efficiency of business segments
  • Resource management for use in the most efficient segments
  • Working capital management.
  • 2. financial structure enterprises

    The financial structure of the enterprise is determined through the composition of the financial responsibility centers (CFR). The center of financial responsibility is a unit that can actually be responsible for any article financial budget(can draw up a plan for the article and be responsible for its actual implementation).

    Definition various types CFD:

    Revenue Center- is responsible only for the volume of sales and / or the amount of income (example - sales manager, etc.).

    Center contribution margin - Responsible for both sales volume and marginal profit.

    profit center is the center by which the complete financial results, with attribution to it not only direct (directly accounted), but also indirect costs.

    Cost center- a unit or group of units that produce the costs necessary to ensure the income-generating activities of the company.

    Investment Center— a division or a group of divisions that are fully responsible for the cash flows for the selected project.

    An example of the financial structure of a small enterprise is presented in Table 1.

    Table 1. Example of responsibility matrix for BDR and BDDS items.

    Name of the Central Federal District

    BDR (budget of income and expenses)

    BDDS (cash flow budget)

    CFD type

    (according to BDR)

    (according to BDDS)

    Profit Margin Center

    Provision (IT manager, HR manager, secretaries, courier)

    Management (DG, Deputy DG, Cd)

    3. Procedure for creating budgets

    An example of a budget creation scheme is shown in the following figure:

    Examples of procedures for creating budgets are presented in the form of a graphical diagram business processes constructing a BDR and BDDS. Control procedure BDR execution is also presented as an example of the corresponding business process, as well as MDD correction procedures and BDDS.

    4. Examples of components of management accounting policy enterprises

    4.1. Sales, and hence income, are accounted for by shipments (and not by cash receipts).

    4.2. Services are accounted for by the closing date of the Service Provision Act (except for the case of clause 4.4.), the costs of material assets are accounted for by the date of receipt (except for the case of clause 4.5.)

    4.3. If the enterprise will use the results of the provided service for a long period, the costs of this service in the BDR are distributed over the entire period. For example, the cost of a subscription to periodicals distributed monthly throughout the year.

    4.4. The costs take into account only minor purchases of material assets - a low price, Consumables etc. Expensive material assets (buildings, premises, furniture, office equipment, transport, etc.) are financed as investment activities, put on the balance sheet of the enterprise, and only the depreciation amount for the corresponding period enters the BDR.

    4.5. Similarly, expensive intangible values ​​are taken into account: licenses, certificates, software etc.

    4.6. Depreciation is linear, calculated on the basis of the original cost and the period of complete depreciation.

    5. Example Income and Expenditure Budget (BDR).

    5.1. The objectives of the preparation of the BDD are:

    — forecast of profitability of the enterprise for the period,

    - enterprise cost management.

    5.2. The planning period for the annual budget is 1 month. Every month, the costs of the next 3 months are specified during the BDR correction procedure. The revenue part of the budget can be changed only by the decision of the General Director.

    5.3. An example of the BDR structure is presented in Table 2.

    5.4. The draft expenditure part of the annual BDR is prepared by the Chief Accountant by December 15 of each year based on the statistics of the costs of the previous period. The project is submitted to the leaders of the Central Federal District for the preparation of proposals for additional costs that will be required due to growth, development, etc. Further, the project is coordinated with the Deputy of the State Duma. The consolidated budget is summarized by the Chief Accountant in a common file. The procedure for creating a BDR is presented as a graphical diagram of the business process for building a BDR.

    5.5. Every month, until the 25th day, the heads of the Central Federal District of the enterprise have the opportunity to submit their clarifications, corrections for the costs of the next 3 months. Corrections agreed with the Deputy State Duma are transferred to the Chief Accountant. Items for which, as a result of the correction, the spending plan increased by more than 15%, are agreed with the State Duma.

    5.6. Payment procedure

    5.6.1. Any employee of the enterprise can be the initiator of payment within the approved budget.

    5.6.2. The application for payment must contain:

  • date,
  • Name and signature of the Initiator,
  • The CFD of the lower level, to which the payment should be linked,
  • Full name and signature of the head of the lower-level CFD,
  • cost item,
  • Purpose of payment,
  • Amount in rubles
  • 5.6.3. An application for payment in cash is prepared and agreed in the form of an e-mail, non-cash - in the form of an invoice from the counterparty, on which necessary details— see clause 5.6.2. After the introduction of the new information system (IS), all applications will be prepared, agreed and recorded in the IS.

    5.6.4. The approved application is submitted to the accounting officer for verification. The accounting officer sends the application for payment only if

    • all details are filled out correctly; otherwise, the application is returned to the initiator of the payment,
    • all approvals have been received; otherwise, the application is returned to the initiator of the payment,
    • the plan for this article and the CFD allows you to make a payment; if, taking into account this payment, the plan is exceeded, the application is submitted for approval:
    • Ø in case of exceeding by less than 15% - to the Deputy Chief Executive Officer,

      Ø in case of excess by more than 15% - GD.

      5.6.5. The application accepted for payment is recorded in the IS according to the details specified in it by the Accounting Officer within 24 hours from the date of its transfer for payment.

      5.7. Monthly at the close of the period until the 15th Chief Accountant(GB) receives from the IS a profit and loss statement (GPU, to be developed) that matches the format with the BDR. The GB analyzes the plan-actual deviations and prepares a report that is considered at the budget meeting. At the meeting, on the basis of the report, management decisions are made, as well as decisions on the need to correct budgeting documents. The procedure for monitoring the implementation of the BDR is presented in the form of the corresponding BP.

      piter-consult.ru

      We issue an order to prepare a vacation schedule for 2018: a sample

      is coming New Year This means that the time is coming to issue an order on the preparation of a vacation schedule for 2018. The current legislation establishes strict deadlines in which the organization (at individual entrepreneur) the vacation schedule must be approved. What does such an order look like? What information should it contain? Is there a standardized form for this document? We will talk about the order on the preparation of the vacation schedule in the material.

      The vacation schedule is mentioned in the TC

      Employees of the organization (individual entrepreneur) with whom the employment contract, in accordance with the current labor legislation are entitled to annual leave. Labor Code specifies the constitutional right to rest belonging to citizens. In particular, it establishes the need to agree on specific dates annual leave workers. The agreed periods are indicated in the vacation schedule. Both the employer and employees must adhere to the vacation schedule. This is a binding document (Article 123 of the Labor Code of the Russian Federation).

      However, before approving the schedule for next year, it is necessary to launch a mechanism for collecting necessary information. This will require an order to prepare a vacation schedule for 2018.

      In the course of business activities, a situation may arise when the planned vacation of an employee needs to be rescheduled. Moreover, the initiator of such a transfer can be both the employee and the administration. The reasons may be different. For example, a large order has been received from customers, and the employee's going on vacation will put an end to it. Or, an on-site tax audit has begun at the enterprise and the obligatory presence of accounting staff, first of all, the chief accountant, is required.

      In such circumstances, the next vacation of an employee may be postponed due to operational needs.

      What questions are most often asked by accountants and personnel officers about the vacation schedule?

      Sample order for preparing a vacation schedule for 2018

      Prepare required document it is easier if there is a sample in front of your eyes.

      The order to prepare a vacation schedule for 2018 will help personnel officers and accountants save time and labor on preparing their own form.

      Download a sample order for the preparation of the vacation schedule-2018.

      When compiling an order, it is necessary to remember the deadline for approving the vacation schedule established by the Labor Code of the Russian Federation.

      When preparing a vacation schedule in 2017 for 2018, you need to meet the deadline by December 18. Given that December 16 and 17 are days off, there is even less time to approve the schedule.

      A sample order for the preparation of a vacation schedule for 2018 for state employees looks similar to the order given in the article.

      • Fines in the field of industrial safety An analysis of the administrative practice of Rostekhnadzor for April-July 2015 shows that more and more often the result of scheduled and unscheduled inspections is the imposition of fines on organizations operating HIFs. As a rule, inspectors […]
      • Pension reform, calculation of old-age pension according to the formula Pension experience and the New procedure for calculating and forming pensions in 2018 new order calculation and formation of pensions. Two of its […]
      • Reducing the fine for consumer protection Auto insurance Housing disputes Land disputes Administrative law Participation in shared construction Family disputes Civil law, Civil Code of the Russian Federation Protection of consumer rights Labor disputes, […]
      • The section "Jobs for foreign citizens in the Russian Federation" is intended for foreigners who want to find a job in Russia and are looking for vacancies for migrants in a particular city. If you are a representative of an organization and you have open vacancies for citizens […]
      • Civil Code Russian Federation (CC RF), November 30, 1994 N 51-FZ, Part one
      • The legislative framework of the Russian Federation Free consultation Federal legislation
      • The order for calculating the length of service You can see a detailed analysis of all the subtleties and nuances of determining the length of service for calculating temporary disability benefits in the video recording of the seminar Dmitrishchuk S.A. "Insurance experience". Before viewing the seminar, we recommend printing […]
      • Order of the Ministry of Agriculture of the Russian Federation of October 11, 2010 N 345 ​​"On approval of the form and procedure for maintaining household books by authorities local government settlements and local self-government bodies of urban districts" (with amendments and additions) Order of the Ministry of Agriculture of the Russian Federation dated 11 […]