Economic and Mathematical Modeling in Budgeting

Abstract

The article is devoted to an overview of modern modeling approaches for effective management of enterprise budgets. The article examines the toolkit of economic and mathematical modeling that can be used in the budgeting system. It is proposed to increase the efficiency of the budgeting process by applying the tools of economic and mathematical modeling at the stages of budget development and resource allocation, as well as in the process of budget control and monitoring. To increase the clarity of the simulation procedure and results, a visualization of the TO BE model is presented in IDF0 notation (simulation language) on the Ramus platform. It is noted that the effectiveness of the budgeting system based on the use of economic-mathematical modeling tools will allow to improve resource expenditure planning taking into account the opportunities, priorities, needs and limitations of a specific enterprise and its external business environment. The need to implement digitalization tools and economic-mathematical modeling in the budgeting system is substantiated. The purpose of the article is to analyze the possibilities of forming an effective enterprise budgeting system based on the successful implementation of economic and mathematical modeling tools. The authors focus on the potential of using business analytics as a result of using economic and mathematical modeling tools to form an effective budgeting system. The article argues for the possibility of effectively using modeling tools in the budgeting process, which allows enterprises to make high-quality management decisions based on forecasts, scenarios, optimization recommendations, visualization of current problem situations, etc. The scientific novelty of this article lies in the fact that the recommendations and conclusions provided by the authors can be useful for domestic enterprises in the current conditions of severe restrictions on available resources, lack of free funds, existing and potential risks. In general, this article is useful for those who want to learn more about the possibilities of using economic-mathematical modeling tools in the budgeting system.