The role of budgeting in the strategic planning process in an enterprise

Abstract

Purpose of the study: The main purpose of this article is to present the definition, function and course of the budgeting process in an enterprise based on the available literature on the subject. The article also aims to evaluate the effectiveness of the implementation of the budgeting process based on available empirical results.
 Methodology: The article was prepared using the method of critical review of the literature in the field of management accounting with a particular focus on items on the budgeting process. In the conducted literature review, academic literature was analyzed, as well as articles and other publications related to the subject matter.
 Main findings: The presentation in the text of the functions and phases of the budgeting process makes it possible to conclude that it is a time-consuming process, heavily involving managers and employees, and that it is necessary to look for an alternative to it.
 Application of the study: The study makes it possible to systematize knowledge in the area of theory related to the budgeting process, its meaning, function and phases. The theoretical content is expanded with the results of empirical studies known in the literature showing the advantages and disadvantages of the process. The research can help in the decision to implement an appropriate planning system in the enterprise.
 Originality/Novelty of the study: The study undertaken shows the space for further analysis of the financial planning system in the enterprise with particular consideration of proposals for new tools that may have practical application.