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The Budget of the Enterprise

The budget of the enterprise is an essential tool for a successful business development. The final aim of the budget of the enterprise is to reach long-term goals.

The model of revenue growth forecast is used to form a budget. The revenue size, the profitability and the liquidity are the strategic goals.

For a short-term planning is it necessary to determine the values of target indicators for each reporting period. There are various methods of approving the target indicators of the enterprise activity. For example, when planning the gain for a long term, we can base on sales growth during last periods or the plans to increase productivity.
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© Gromova J.E., 2011
The usage of this article is allowed only with appropriate reference to the source and the author.

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Budget execution and control over it

Budget execution is closely linked to the necessity of getting the information fast and in time to ensure effective interaction between the financial departments.

Control over the budget execution apart of organizational measures suggests the use of automated budgeting system.

At the stage of the budgeting system formation one of the most serious problems is the problem of definition of budget formats.

For the control of the budget execution the form and the structure of the system should comply with the already established forms of financial reports, but it often happen so that the forms of financial reports do not work with financial palnning and control. That's why top manager defines by himself the form of budget format with the help of visual layer bb budget.

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