BUDGETING AS AN EFFECTIVE TOOL FOR MANAGING A SMALL ENTERPRISE

Abstract

The interpretation of budgeting as a special function of the management accounting system is proposed. The methods of budgetary management, taking into account the specifics of small businesses, have been studied. The existing interpretations of budgeting and budget management by various researchers are analyzed. The fact of the aggravation of the problems of small businesses during periods of economic crises has been revealed and the relevance of studying and disseminating the experience of those small businesses that have acquired skills in the field of modern management and decision-making methods, including such a management tool as budgeting, has been substantiated. Taking into account the accumulated experience, proposals were specified on various aspects of implementing an effective budgeting system for small enterprises, including the automation of management tasks, the forms and purpose of budget tables, the search for a compromise relationship between liquidity and profitability indicators, the creation and development of a planning system using external and internal budgets, features drawing up certain types of operating budgets within the framework of a functional approach. Proposed procedure for introducing budgeting for small businesses.