FEATURES OF FINANCIAL PLANNING AND BUDGETING AT THE INDUSTRIAL ENTERPRISE

Abstract

Belonging to the branch makes essential impact both on financial planning, and on its component - budgeting. Budgeting at the industrial enterprise is the most representative, as capital turnover cycle in this case is classical, i.e.it is full. Besides, the budgeting feature in the industry is transparent enough structure of expenses, the most part of which is rationed, that somehow simplifies the budgeting process. However, there are also budgeting restrictions at the industrial enterprise. They are technical possibilities, the demand for production, availability of raw materials, marketing channels and qualified labour resources. For budgeting to be effective tool of financial planning at the industrial enterprise, it is necessary to consider all given restrictions and to search for the ways of its perfection. It is necessary to provide various variants of change of external and internal factors which influence the production process, sale and accordingly budgets execution. In the article financial planning and budgeting procedure at the industrial enterprise is considered. With the necessity of more complex view at financial planning and budgeting process the authors suggest to use two models of budgeting: trivariant and is probalistic-stochastic based on laws of mathematical statistics. It will allow providing unanimity of methodological, organizational and technical approaches while realizing management system at the industrial enterprise and its structural divisions