BUDGETING AS A MANAGEMENT TOOL AT TRADE ENTERPRISES

Abstract

Modern economic conditions presuppose continuous monitoring and analysis of the optimal use of the resources for management decision making promoting better activity result for a certain period. In this regard, budgeting is an effective system of management and planning ensuring. It is impossible to control and plan the organization activities without budgeting. Budgeting is the basis of the development of organization strategy and its stable functioning in competitive environment. Proper budgeting system allows analyzing and monitoring the work of the organization as a whole and the work of separate departments. The budget gives detailed explanation of how business management will work for the effective management of the organization. It shows planned income and expenditure that will be in the reporting period. Budget data are subject to revision and refinement in response to the changes in the market and changes of economic environment. Each activity has its own characteristics and peculiarities. The differences form budgeting specific character and structure. Hence the role of budgeting at effective management decision making to form the best financial result of the organization's activities is very important