Stručni rad
https://doi.org/10.38190/ope.11.1.2
By budgeting to safer business operations and enterprise development
Željko Tintor
orcid.org/0000-0002-5405-4843
; RETRA d.o.o. za reviziju i poslovno savjetovanje
Sažetak
The most important task of management is to make business decisions. Regardless of the type of decision, their ultimate goal is to ensure optimal business and profit, as well as future growth and development of the company. The risk of such decisions does not allow them to be made only on intuition, but requires reliable and credible information and thoughtful activities that will ensure the achievement of these goals. Among them, the most important management activity is budgeting, which is the foundation of business planning and managerial control over business processes and business results. With respect to the time frame, planning is divided into long-term and short-term. The former usually sets strategic goals over a period of three years or more, together with framework funds, broad guidelines and activities to achieve them, while the latter, called the master budget or the main business plan, covers a period of one year or a shorter period with more precise business objectives and more detailed means and activities by which they are intended to be realized. The master budget is a set of individual budgets or processes in the company that together form a synergy of planned activities of the future business of the company. Given the size of the company and the nature of its business, we distinguish between the master budget of a manufacturing and trading company. However, in both cases, planning as a process appropriately includes preparations for planning, defining goals, drafting and adopting a plan, as well as monitoring and analyzing the implementation of the plan. This paper is dedicated to the central part of planning, i.e. the development of the master budget, which, as the main business plan, includes the operating budget and financial budget of all business activities of the manufacturing company in a period of one year. As such, it represents a response to market challenges, uncertainties and business risks. With its simplicity of presentation, it is specially adapted for the needs of small companies, which make up the majority of economic entities in the Republic of Croatia. The aim of this paper is to point out the importance of the master budget and to present a complete model of the business plan of the manufacturing company and managerial control over all business processes. Also, the the paper intends to present a pattern according to which each company, from the smallest to the largest, can make its own annual master budget and thus ensure security and control of all business processes, and thus successful business, profit, growth and development. The paper uses techniques and methods of analysis and synthesis, as well as planning methods. The sources used in the paper are personal data sources and secondary sources, which include relevant professional and scientific literature.
Ključne riječi
master budget; main business plan; operating budget; financial budget
Hrčak ID:
258795
URI
Datum izdavanja:
11.6.2021.
Posjeta: 2.065 *