Budgeting is a management technology, the base of financial discipline. The budgeting is used to increase the responsibility of different levels managers for the financial results achieved by their departments.
The calculations allow to determine the necessary amount of funds to reach the goal of the budgeting as well as the sources of these funds. When there is a deficit of funds and there is no opportunity to use credit funds, the expenses on budgeting are analyzed and then the cost reduction is done.
There are three main functional areas of budgeting:
production (or operating)
In financial planning, the types of budgets are usually divided into the following groups:
main budgets (revenues and expenses budget, cash flow budget, balance of payments)
operating budgets (sale budget, direct costs of raw materials budget, direct cost of salary budget, running costs budget, etc.)
To automate the budgeting various software are used. The budget program is the term used to denote a strategy of financial and economic activities, but very often this term is used to denote the software to automate the budgeting.
Speaking about the software to work with the budget (for the automation of the budgeting process), the market represents a wide variety of software from domestic developers as well as from foreign ones.
We suggest you considering one of the best solutions on the market of budget automation which is shown on our website in the section "Download". Download our automation system of budgeting which is a part of the complex solution for effective management.