Theoretical principles of budgeting as a method of economic management of enterprise’s activity

Abstract

The paper is devoted to the study of the theoretical foundations of budgeting as a method of economic management of the enterprise. It has been proven that in modern conditions, budgeting is aimed at increasing the efficiency of its activities in the current period and in the future. There are considered modern approaches to the interpretation of the budget and the budgeting process at the enterprise. The analysis of various literary sources regarding the definition of the concept of "budgeting" was carried out. Various approaches to revealing the economic essence of the concept of budgeting have been identified. It was found that disagreements related to the interpretation of the term budgeting system by scientists lead to differences in the identification of its functions. The following approaches to the interpretation of the essence of the budgeting process are distinguished: budgeting as a tool for planning the enterprise's activities; budgeting as a tool for operational and tactical planning; budgeting as a management method; budgeting as a management technology. Also, there are considered the economic essence of budgeting as a method of economic management of the enterprise's activities, aimed at forming a system of budgets for all areas of its activity. The task of budgeting is systematized, the elements of the budget system infrastructure at the enterprise are presented. A sequence of stages in the formation of the budget system aimed at optimizing the economic management of the enterprise is proposed. A sequence of stages in the formation of the budget system aimed at optimizing the economic management of the enterprise is proposed. On the basis of the conducted research, a modern conceptual approach to the definition of the concept of "budgeting system" was formed.