The design and implementation of this hierarchy is a complex cyclical process in which several main stages can be identified.
Design of the financial resource distribution structure
At this stage, responsible specialists work with the material, i.e. study the documentation, financial accounting standards and the specifics of horizontal communication within the company. Then they develop a methodology for building and implementing the enterprise budgeting system and create a financial responsibility center. The number of such centers and their qualitative composition are determined by the scale of the company and the specifics of its activities.
The result of the work at this stage is a ready-made instruction for creating a budget. The document displays the main milestones, deadlines and responsible employees. After all these activities, the enterprise budgeting system is ready for implementation.
Budget Committee
Often, the working group is germany email list formed from representatives of different structural divisions. Invited managers help key employees carry out additional calculations that take into account the specifics of the company's departments.
Budget Committee
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Formation of budgets
At this stage, the main work is carried out. Therefore, the duration of the stage can be several months. For this reason, the formation of the budget for the new financial year often begins in August. The final consolidated estimate includes factors of all financial plans.
Designing a budgeting system is a complex multi-stage process, in the implementation of which each manager has his own area of responsibility. For example:
The sales department specialist is responsible for the sales budget and commercial expenses. His/her area of competence includes drawing up a sales plan for individual product items.
The procurement manager prepares a raw material procurement budget to support the technological process.
The production budget should be formed taking into account market conditions, sales volumes and product balances in storage.
In this way, a budget structure is created by financial responsibility center, depending on the specifics of the company.
Monitoring
The final stage of the budgeting cycle, where evaluation analysis and constant monitoring of the process of funds movement are of great importance. For ease of control, the entire financial year is divided into a number of reporting periods, after which the planned KPI values are compared with the actual values.
After monitoring, work begins on forming the next budget, during which specialists use a factor analysis of economic coefficients for the previous period as a basis.
Important! The first three stages of building an enterprise budgeting system are relevant only in the first cycle. They are not mandatory when drawing up financial plans for subsequent periods. And the fourth and fifth stages (budget formation and monitoring) are constantly repeated annually. Moreover, control over the execution of the current budget is usually synchronized with planning for the next year. Such organization of work allows for rational use of labor resources and significant time savings.