Importance The current economic and political situation significantly affected the financial sustainability and solvency of fish processing enterprises in the Kaliningrad oblast. The existing financial management systems should be optimized due to insufficient working capital and available loan facilities, drop in revenue and growing costs that made bankruptcy even more probable. Objectives The research pursues preparing practical recommendations to improve the system for managing finance of on-shore fish factories through activity-based budgeting. The article describes the specifics of financial flows of on-shore fish processing enterprises and substantiates the need to implement the activity-based budgeting system. We overview the activity-based budgeting tools. Methods Using general scientific methods, we analyzed the structure of financial and cash flows generated by fish processing enterprises, duration of their financial and operational cycles. We set up corporate financial management efficiency criteria for the current economic conditions and selected budgeting methods, which would meet the current financial management needs as much as possible. Results The research reveals the specifics of financial flows of fish processing enterprises, and describes the main issues of corporate financial management in the fishing industry. To make financial management of on-shore fish processing enterprises more effective, we propose the activity-based budgeting methods that focus on long-term corporate development in line with the chosen strategy, building economic value added and increasing it as much as possible, assuming that financial resources are optimally formed and used. Conclusions and Relevance It will be impossible for fish processing enterprises to reach a financial sustainability in the current economic conditions without an effective financial planning and budgeting system, which would facilitate the implementation of the development strategy. The activity-based budgeting is one of the most effective methods to form strategic budgeting systems.
Keywords: fish processing enterprise, financial management, activity-based budgeting, business process, balanced scorecard
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