The budget is a system of distribution of income and expenses of the enterprise. The ideal situation is when it is balanced, that is, there is no deficit (shortage) or surplus (surplus) between the available sources of financing and the directions of use of funds.
Instructions
Step 1
To achieve a balanced budget, you need to find the optimal ratio between the financial performance of the company. At the same time, it is necessary to adhere to the following criteria in order to achieve the planned profit and profitability.
Step 2
First, the budget should not be in deficit. All income from the activities of the enterprise should cover current expenses, including for repayment of external sources of financing (loans and borrowings), and also provide coverage of unplanned payments in case of delays in settlements with counterparties.
Step 3
Secondly, one should take into account the rate of return that the owners of the company are planning, as well as the possibility of releasing new products or introducing technological lines, and as a consequence, the rejection of the company's profits. In addition, when balancing the budget, it is necessary to take into account the long-term development strategy of the firm.
Step 4
To make the budget in accordance with the above criteria, you can use the following algorithm. First of all, a scheme is drawn up in which the working conditions of the company are accepted as standard. In this case, the volume of sales, methods of settlements with counterparties, as well as the amount of profit and profitability, based on their most realistic indicators, are determined.
Step 5
Then the methods of settlement in suppliers and buyers are revised, and the most effective one is selected, taking into account all possible discounts and markups. And also a system of settlements with counterparties is determined (before or after the shipment of goods).
Step 6
Further, a balanced budget is established and approved. On the basis of it, the credit policy of the company is formed, and all agreements with partners are concluded in accordance with it.
