FUNDAMENTALS OF BUDGETING IN MANAGEMENT ACCOUNTING

Abstract

The concept of management accounting is considered. It is proved that management accounting is a much broader concept than accounting, it is shown what their difference is. A management report is much broader than an accounting one, so it helps to look at the business from different points of view. It is concluded that budgeting is a management accounting tool. Examples of how budgeting can be useful for entrepreneurs are given, the advantages of budgeting in the daily work of an enterprise and its owners and managers are considered. Budget planning is thinking through the financial activities of an enterprise depending on its goals. As a rule, an organization allocates its economic resources for a year at once. It is shown that budgeting is not synonymous with planning. This is only a management tool created to improve business performance. In addition to planning (setting goals), the methodology includes accounting (recording achievements) and control (analysis of deviations).