Special features of corporate budget planning: contemporary approach release_gcyrvtc3hvaj3jt6kwof4rlx4i

Abstract

The purpose of this article was to study budgeting process from the point of its structure, analyze the Russian and European models of budget planning. Russian experts seem to favor a combination of rolling budgeting and top-down approach. Zero based method is preferred for larger projects with strict budgeting culture. For smaller and medium business, there remains lack of attention to budgeting. It is caused by lack of finance, experience and prioritization of other financial management tools. The classical approach used in the beginning stage would definitely be the top-down approach, which despite some its flaws can work well in the beginning stage of business development, when the strategy is rather aggressive and growth-oriented. Larger better-established organizations tend to realize importance of budgeting process and devote greater attention to developing its structure. The combination of methods is rather appropriate and additional investment should be made specifically into the Information System used in the budgeting process, as it is associated with reducing labor costs and accelerating processes. Unfortunately, Russian companies still find it difficult to keep up with development of new techniques on budgeting process overseas. This was shown in detailed comparison of Russian budgeting model with the European one.
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