The Development of Budgeting System for Electrotechnical Plants of Perm Region of Russian Federation

Eugeniia Rinatovna Mukhina and Ludmila Nikolaevna Deputatova

Perm National Research Polytechnic University, Russia, 614990, Perm, Komsomolskiy prospect, 29

ABSTRACT: Interview of 11 directors of electrical engineering industry organizations showed the problems of management accounting at the enterprises and allowed to diagnose the quality of using such elements of management accounting as budgeting, calculation, internal reporting. Such measures as the creation of a unified automated enterprise management system, the development of the financial structure of the enterprise, the organization of financial responsibility centers, the development, production and implementation of the budgeting system are proposed. The budgeting method is developed. The stages of this method are following: the analysis of the existing planning system in the enterprise; the formation of the financial structure of the enterprise; the creating interaction scheme budgets; the distribution budgets centers of financial responsibility; the definition of key performance indicators in budget execution; the monitoring and analysis of budget execution. The factors which influence establishing budgeting system at the enterprises have been defined. Centers of financial responsibility were created to keep track on efficiency rate of companies’ activity. The advantages of proposed method have been formulated in comparison with existing approaches. They are the principles of providing scheduling flexibility, completeness budgets, complexity of the system, delegating responsibility, transparency of information.

KEYWORDS: Budget; Budgeting; Responsibility centers; Financial structure; Efficiency; activity indicators

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