Reporting on enterprise budgets
Posted: Sat Feb 01, 2025 5:49 am
The budget cycle is understood as the reporting period for the implementation of the financial plan, consisting of income and expense items. In each company, based on the specifics of the organization of production, the most convenient and optimal period is established during which the funds make a full turnover. Then the process is repeated.
It is very important to follow the sequence of budgeting stages at the enterprise so that the movement of monetary resources is always under control. When the market situation changes, this allows you to quickly react and make the necessary adjustments in order to extract maximum profit.
The relationship between budgeting and the budget cycle of the enterprise
Source: shutterstock.com
Each iteration can be divided into three parts:
Planning. The current germany email list economic situation of the company is analyzed, the sequence of steps is written down and control points for possible changes are determined. The influence of external and internal factors is predicted and strengths and weaknesses are identified. The plan is designed to achieve pre-formulated goals that the company must achieve by a certain point.
Implementation. Step-by-step implementation of the provisions recorded in the document. This is a very important practical process, during the deployment of which it is necessary to constantly monitor the compliance of the actual values of key parameters with their planned values. For convenience, the global estimate is divided into a number of local budgets, the implementation of which is easier to control.
Completion. The results of the work done are summed up. An evaluation analysis of KPI is performed. If the deviations of actual values from planned ones are large, this indicates low efficiency of the structural divisions, or there are errors in the documentation.
It is very important to follow the sequence of budgeting stages at the enterprise so that the movement of monetary resources is always under control. When the market situation changes, this allows you to quickly react and make the necessary adjustments in order to extract maximum profit.
The relationship between budgeting and the budget cycle of the enterprise
Source: shutterstock.com
Each iteration can be divided into three parts:
Planning. The current germany email list economic situation of the company is analyzed, the sequence of steps is written down and control points for possible changes are determined. The influence of external and internal factors is predicted and strengths and weaknesses are identified. The plan is designed to achieve pre-formulated goals that the company must achieve by a certain point.
Implementation. Step-by-step implementation of the provisions recorded in the document. This is a very important practical process, during the deployment of which it is necessary to constantly monitor the compliance of the actual values of key parameters with their planned values. For convenience, the global estimate is divided into a number of local budgets, the implementation of which is easier to control.
Completion. The results of the work done are summed up. An evaluation analysis of KPI is performed. If the deviations of actual values from planned ones are large, this indicates low efficiency of the structural divisions, or there are errors in the documentation.