Analysis of income and expenses of an enterprise as a financial budgeting tool

The article reveals the role of income and expense analysis of a commercial enterprise as a financial budgeting tool. Any commercial activity involves monitoring the available financial resources. To do this, it is necessary not only to analyze current expenses, but also to predict possible future investments. The budget, which is a table of the revenue and expenditure side of the enterprise, is the basis of budgeting. It allows you to see not only the directions of the company’s activities, but also their effectiveness. When organizing a budgeting system, it is important to take into account not only the properly organized economic and financial structure of the enterprise, but also the existing software system. Thus, this will minimize the risks of crisis situations that may arise under the influence of both internal and external factors. In addition, a well-organized budgeting system will allow for better coordination of the activities of structural divisions; strengthen the motivation of both employees and heads of departments; forecast financial results; distribute responsibility between departments.