The criteria of budgeting system optimality in telecommunication companies

Abstract

Purpose: Article examines the main criteria of budgeting system optimality organized by telecommunication companies in the period of Russian market economy development. The analysis is made by the example of OJSC «Southern Telecommunications Company». Discussion: Based on the assumption that the maintaining power in the market of telecommunication service depends on competitive ability of the company, the authors define eligibility for actual conditions of business operation and main regulatory documents in the matter of financial accounting and management. The relevance of the problems under study resulted firstly in the effectiveness of financial management, accuracy of budgeting process, and forecasting financial results of company's activity under the conditions of market economy by introduction the theory and methodology of accounting basis in the in-house regulations for budgeting process; secondly in the revised evaluation of the matrix structure usage for assignment of responsibility through the construction process of telecommunication company's budgeting system; and thirdly, in the slowdown in growth rates of expenses radically otherwise in case of expense items of operation budget reduction, in particular by using the opportunities for the accounting given by the applicable law for the improvement of actual and planned financial and economic variables of the company. Results: Based on the evaluation of applied criteria, the authors made suggestions and recommendations, which could update the system of company budgeting and improve its socioeconomic efficiency in practice.