| Abstract [eng] |
The main purpose of this master thesis is to analyse and to provide recommendations how the budget preparation and control of their implementation should be organized in JSC “X” and what methods, changes enterprise already use or see as innovation under accomplished survey. The object of the thesis is budget preparation, their control system in JSC “X”, accomplished survey results and enterprise opinion about Beyond Budgeting. Preparation of this master thesis is based on analysis, comparison and summation of scientific literature and publications as well as analysis of the budgeting system in JSC “X” and accomplished survey. Also, for writing master thesis the experience of the author working with the budgets as a chief accountant and financial controller was used. The work consists of three main parts, also having introduction, conclusions and recommendations, the list of literature and appendixes. The conception of budgets, their importance and interrelation with planning process as well as the advantages or disadvantages that the companies obtain using budgets in their management control systems is analysed. Also, a detailed study of the budgeting process is provided emphasizing different types of budgets, the main principles how the budgeting process should 76 be organized and the consistency of this process. Besides, the importance of the budgetary control and its procedures are explored as well. After the literature analysis was done the author has carried out the study of the budgeting system in JSC X and survey about budgets and their control in Lithuanian enterprise. The main fundamentals of budgeting, budgeting detailed info and budgetary control as well as deviation between actual results and the budgeted ones were analysed in order to evaluate the applied system and to provide recommendations how the system should be improved. The analysis has shown that the system has disadvantages which should to be eliminated from the system. In budget preparation process it is strongly recommended avoid unnecessary details, to prepare changing budget instead of static one. High level budgeting can be used with the shortened budget approach, recommendation to reduce time spent on the budget and frees up management time to think strategically. The findings and recommendations summarize the main concepts of literature analysis as well as the results of the performed case study of the budget system in JSC “X” and accomplished survey. The author believes that the findings, recommendations of the study and provided results of survey related to budgeting could give useful guidelines to the JSC “X” and other companies how to improve their budgeting system in order to make it more effective and to obtain as much useful information as possible. The industry is changing so rapidly and therefore the author believes it makes budgets ineffective. Reasons using Beyond Budgeting for instance: time consuming and cost to prepare, size and nature of activities of the organisation, focus too much on financial results do not taking into account other aspects and others. |
