Features of modern technology of budget and reporting indicators formation in business activity

Abstract

Modern business management technologies are driven by constant reforms in the economic markets, which in a competitive environment makes entrepreneurs find new technologies for business management and control. In this regard, the article substantiates the feasibility and effectiveness of using management technology based on the point relationship between budgeting and management accounting in relation to indicators that significantly affect the company’s profit. To organize this relationship, the article proves the need to use a key approach in business administration, based on the division of the company into segments of responsibility. Each segment in the form of a responsibility center is recommended to be used to assess the «budget value» of the segment, and through management reports — to assess the materiality of the budget and reporting deviations received. This approach, in the context of the demand for competent managers, is able to identify functionally suitable business segment managers for management.