Budgeting in the company

Budgeting is one of the central controlling instruments. In American companies, controllership is often equated with budgeting (budgeting guidelines).

Der Begriff der Budgetierung umfasst die Aufstellung (Budgetplanungsinstrumente), Verabschiedung, Kontrolle (Budgetkontrollinstrumente) und Deviation analysis
of budgets. Budgeting is therefore the phase in the budgeting process in which action plans are implemented in terms of value. However, the action plans do not necessarily have to precede and determine the budgets. Budgets can also determine the content of the action plans. In reality, mixed forms dominate (budgeting organization). Budgeting starts at all planning stages (strategic, operational) and at all planning deadlines (long-term, short-term). In the case of operational and short-term plans, however, budgeting is of particular importance due to the better predictability of quantitative data. Annual budgeting is particularly common.
As an element of the controlling system, budgeting provides considerable benefits in the management process. The following aspects should be emphasized here:
With the help of coordinated budgets, all operational activities can be geared towards the overall goal of "success". Instead of budgeting, the term success planning is therefore often used.

In addition, the implementation of the plans is significantly supported by budgeting. This applies both to the implementation of strategic plans in operational plans and to the implementation of operational action plans.

Another aspect relates to influencing behavior. The budget function can be used to define the contribution to success of each responsible person. Compliance with budget targets is often linked to incentive systems (budget reports). However, there are also risks associated with this aspect, especially in the context of annual budgeting. Budgeting can encourage short-term profit thinking that counteracts long-term corporate goals. Another risk of budgeting is the misconduct of so-called “budget wasting”: budgeted funds are wasted. The reason is that, as is often the case with cost budgets, new approvals are often made dependent on the exhaustion of previous approvals. This risk can be countered with the use of zero-base budgeting.

Der enorme Aufwand, der in vielen Unternehmen durch Planungs- und Budgetierungsrunden verursacht wird, die Verkürzung des Planungshorizonts, die Konzentration auf Wertgrößen sowie die Förderung funktionsbereichsspezifischen Denkens haben zu teilweise massiver Kritik an der Budgetierung geführt und die Diskussion „beyond budgeting“ entfacht. Im Rahmen dieser Diskussion wird der Versuch unternommen, die Budgetierung im Hinblick auf eine stärkere Prozessorientierung (Budgetierung, prozessorientierte, Performance Measurement, prozessorientiertes) und die Abkehr von der reinen Wertorientierung (Performance Measurement, Balanced Scorecard) sowie eine Verschlankung des Budgetierungsprozesses und der budgetierten Sachverhalte effizienter und effektiver zu gestalten.

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