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Budget management is said to be the management mode of translating plan into action through some encrypted programs for decisions taken by management with the participation of related officials.
Budgeting involves the definition of ex ante objectives, structure covering all company activities, participation
and commitment of leaders of responsibility centers and the establishment of a budgetary control.
The various budgets by function generally include:
- The sales budget;
- The production budget;
- The supply chain budget/procurement budget;
- The capital budget.
- The budget for expenses;
The consolidated budget by function or responsibility centers allows to develop projected financial statements (balance sheet, income statement, cash flow statement) and cash flow.
It is true that information systems tend to be the structure of post-industrial organizations. The E.R.P., "Enterprise Resource Planing" are integrated management software that supports consistently the administration of the company's main data stream. These integrated operational systems require careful setup and come to identify with the organizational architecture.
Furthermore, knowledge management systems can be a real corporate memory. The timeliness, quality and relevance of a decision depends on the information the decision-maker has.
The management control job is to collect, create, process and analyze the information necessary for the operational management of the company and the implementation of its strategy. In contrast, treatment of forward-looking information to make radical changes in socioeconomic systems is not within its mission. Innovation in technological, economic, organizational, social or institutional is not the responsibility of management control.
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