MANAGEMENTUL BUGETAR
BUDGETARY MANAGEMENT

Summary/Abstract: An economic analysis is correct and complete if it shows evidence of the general context of the business environment in which the institution/society/enterprise is operating: fiscal regulations, the evolution of demand in certain fields, inflation, exchange rates. Based on economic analysis reports economico-financial indicators are calculated which are a synthetic expression of the institution/society/enterprise performance: profitability, liquidity, solvability indicators etc. With economico-financial indicators the financial diagnosis of an institution/society/enterprise can be given which is “the state of financial health” of the business on the basis of which strategies for the future can be made. Any institution/society/enterprise can control its future financial performances with the help of budget management. Budgets are the financial expression of the objectives and general development strategies of the firm for a year. An integral system of budgets is created, which at an enterprise level is represented by 4 central budgets: Income and expenses budget, Investment budget, Cash budget and the financial budget. The budgets of institution/society/enterprise are created after the general direction of the firms development is settled with the help of clear objectives and policies. For their conception all the factors of the economic and politic environment which can be anticipated and can influence in any way the future performance of the firm. For the optimization of the economic performance of the business it is necessary to implement a system of financial management as a set of internal reports adapted to the needs of the management team.

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