Home  Journals  Finance and Credit  38(614) - 2014 October

Developing the main phases of innovation project budgeting at an enterprise

Available online: 12 October 2014

Subject Heading: Innovation development

JEL Classification: 

Pages: 60-67

The article points out that budgeting takes on new significance for a modern innovation enterprise. A system of budgeting is not merely an instrument of financial planning, but also an instrument of an enterprise's finance management by means of building a set of compatible budgets. It enables to describe and structure the overall enterprise's activities in the forthcoming period, as well as individual innovation projects in the context of solving financial tasks on the basis of ongoing analysis of economic information within a rapidly evolving external environment. The author emphasizes that the most important problem of budgeting is to ensure effective activities of an enterprise. The basis of such activities is a goal orientation and coordination of all actions that cover a change in the enterprise's resources, assets and their sources, as well as a flexibility increase, risk identification and mitigation. Therefore, on the one hand budgeting is capable to prevent erroneous managerial decisions and on the other hand - to reduce unused potential. The article emphasizes that the main idea of a budgeting system is to combine the centralized strategic management of an enterprise and the decentralized operational management of its subdivisions and projects. The author concludes that an innovation enterprise's activities budgeting enables to achieve enhanced transparency of cash flows, to perfect the finance management process, to ensure cash savings, to cut down non-productive costs, to improve financial and economic performance data due to increased profit, optimization of receivables and payables management and tax planning.

Keywords: planning, efficiency, innovation, budget, enterprise, financial control

References:

1. An'shin V.M., Tsar'kov I.N., Yakovleva A.Yu. Byudzhetirovanie v kompanii: sovremennye tekhnologii postanovki i razvitiya: uchebnik [Budgeting system of a company: modern technologies related to implementation and development: a manual]. Moscow, Delo Publ., 2005, 240 p.
2. Upchurch A. Upravlencheskii uchet: printsipy i praktika [Management Accounting: Principles and Practice]. Moscow, Finansy i statistika Publ., 2008, 952 p.
3. Arkhipov N.I. Issledovanie sistem upravleniya [Management systems research]. Moscow, PRIOR Publ., 2002, 384 p.
4. Borovkov P. Finansovaya struktura – shag k byudzhetam ili k byudzhetirovaniyu? [A financial structure: is it a step to budgets or to budgeting?]. Finansovyi director – Finance director, 2010, no. 12.
5. Balabanov I.T. Innovatsionnyi menedzhment [Innovation management]. St. Petersburg, Piter Publ., 2001, 304 p.
6. Goremykin V.A. Planirovanie na predpriyatii: uchebnik [Planning at an enterprise: a manual]. Moscow, Vysshee obrazovanie Publ., 2009, 634 p.
7. Dobrovol'skii E., Karabanov B., Borovkov P., Glukhov E., Breslav E. Byudzhetirovanie: shag za shagom [Budgeting: step by step]. St. Petersburg, Piter Publ., 2005, 448 p.
8. Idziev G.I. Legkaya promyshlennost' regiona: problemy i puti resheniya [Regional consumer goods industry: problems and solutions]. Natsional'nye interesy: prioritety i bezopasnost' – National interests: priorities and security, 2011, no. 38.
9. Kontrolling v biznese. Metodologicheskie i prakticheskie osnovy postroeniya kontrollinga v organizatsiyakh [Controlling in business. Methodological and practical bases of creating a controlling function in organizations]. Moscow, Finansy i statistika Publ., 1998, 256 p.
10. Finansy: uchebnik [Finance: a manual]. Moscow, Vysshee obrazovanie Publ., 2009, 591 p.

View all articles of issue

ISSN 2311-8709 (Online)
ISSN 2071-4688 (Print)

Journal current issue

Vol. 30, Iss. 4 April 2024

Archive