BUDGETING IN MANAGEMENT OF FINANCIAL RESULTS OF MOTOR TRANSPORT ENTERPRISES

Abstract

The article describes the basic principles of budgeting, necessary for the management of financial results of motor transport enterprises, as well as reveals the main problems of budgeting. It is determined that the main prob-lem of motor transport enterprises engaged in urban passenger transportation is the unprofitable dynamics of their activities results. Taking into account these trends when building a budget system is necessary to identify the causes of negative financial results and apply timely measures to eliminate the factors that cause them. It was also found that motor transport companies usually make only a financial plan, without applying an effective budgeting system. The characteristic of structure of the financial plan and the operating budget of the motor transport enterprise is given. The differences between budgeting and financial plan are considered. The purpose of the article is to develop and provide recommendations for building a modern budgeting system to improve the effective management of financial resources and performance of the motor transport enterprise. This is due to the fact that motor transport enterprises of communal ownership have a number of features on which the budgeting process depends, especially in terms of enterprise’s meth-ods of costs and fares calculating. Since in a communal company the tariff for passenger transportation depends not only on the cost of transportation but also from its adjustment by local governments, it often leads to the determination of tariffs below the actual cost of transportation. The dependence of the activity of such enterprises from the number of appropriations received from the local budget in accordance with the estimated purposes is revealed, which makes it impossible to form a real tariff using the budgeting system. According to the research, it is concluded that the main task of creating budgets for the motor transport enterprises to manage financial results is the formation of revenue budgets and expenditure budgets. In order to better coordinate these budgets, it is necessary to create responsibility centers in these areas to assess the activities of revenue centers and cost centers, for better forecasting the revenues and expendi-tures of the motor transport enterprise. It is important to assess the profitability of routes in order to review the transport network, implement control and analysis of budget execution, forecast risks as well as identify ways to prevent them, comparing the actual financial results with the planned. All this will make possible to calculate the profitability strategy of transportation as the main factor in the formation of a positive financial result.