Publication Details
Abstract
Efficiency of an enterprize is the most important factor for attention and it is crucial for competitiveness and profitability of firms in a modern global market economy. Money management, especially through budgeting, is key to reaching those goals. Budgeting system the basic, necessary financial management tool, horizon for planning, allocation of resources and controlling performance of production. Budget outcome analysis also helps enterprises track their areas of improvement, cost-saving, and strategic decisions. Budgeting plays a very important role and must be learning together with economic performance and business performance which is directly connected to efficiency-related variables, but the relationship is not yet well established, especially in the case of the Uzbek economy that is the system of interaction between budgetary and economic policy processes has many challenges and gaps. The main objects of this study are to assess the effectiveness of budget outcomes on firm performance by investigating the association among budgetary performances and financial performances like profitability, cost control, and resource use. The research reported that systematic tracking of budget results reduces costs by 8-15% and increases net profit by 6-12%. Other areas such as liquidity, resource utilization costs, and labor productivity also saw good changes. Results of the budget should be used not just as an instrument for financial control, but also as strategic inputs in decision making within a context of their long-run competitive impact, especially when they reflect performance of activities and processes and are connected (linked) to Key Performance Indicators (KPIs).