Bridging Financial Forecasting and Budget Management: New Approaches for Modern Enterprises

The study aims at uncovering the linkages between financial forecasting accuracy and budget performance in modern enterprises, pointing at the crucial role of integration, managerial and economic conditions, on both suggesting the possible causes and prognosis of budgeting performance decline. The...

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Main Author: Mikhail Lipelis
Format: Article
Language:English
Published: University of Applied Sciences in Bielsko-Biała 2025-03-01
Series:Zeszyty Naukowe Wyższej Szkoły Finansów i Prawa w Bielsku-Białej
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Online Access:https://asej.eu/index.php/asej/article/view/871
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author Mikhail Lipelis
author_facet Mikhail Lipelis
author_sort Mikhail Lipelis
collection DOAJ
description The study aims at uncovering the linkages between financial forecasting accuracy and budget performance in modern enterprises, pointing at the crucial role of integration, managerial and economic conditions, on both suggesting the possible causes and prognosis of budgeting performance decline. The research uses panel data from 2020 to 2024 of ten leading U.S. companies across different industries and applies a fixed effects econometric model to estimate the effect of important internal and external factors on budget variance. The results show that higher forecasting accuracy, stronger integration among financial planning functions, and more agile managers are linked with better budget outcomes. JPMorgan Chase, Apple and Microsoft were companies with better internal systems and thus better control of deviations in budgets whereas Tesla and Boeing were more open to fluctuations in their systems making budget deviations challenging. The study underlines the importance of focus of the enterprises for not only to invest in the predictive tools but also to be in line with the strategic decision making and financial execution processes for the insulation of the resilience and the financial discipline of the enterprise in a dynamic setting.
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publishDate 2025-03-01
publisher University of Applied Sciences in Bielsko-Biała
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series Zeszyty Naukowe Wyższej Szkoły Finansów i Prawa w Bielsku-Białej
spelling doaj-art-659076dd863f460dbe601dd9fc564e1e2025-08-20T02:26:06ZengUniversity of Applied Sciences in Bielsko-BiałaZeszyty Naukowe Wyższej Szkoły Finansów i Prawa w Bielsku-Białej2543-91032543-411X2025-03-0129110.19192/wsfip.sj1.2025.5Bridging Financial Forecasting and Budget Management: New Approaches for Modern EnterprisesMikhail Lipelis0University of Miami, US The study aims at uncovering the linkages between financial forecasting accuracy and budget performance in modern enterprises, pointing at the crucial role of integration, managerial and economic conditions, on both suggesting the possible causes and prognosis of budgeting performance decline. The research uses panel data from 2020 to 2024 of ten leading U.S. companies across different industries and applies a fixed effects econometric model to estimate the effect of important internal and external factors on budget variance. The results show that higher forecasting accuracy, stronger integration among financial planning functions, and more agile managers are linked with better budget outcomes. JPMorgan Chase, Apple and Microsoft were companies with better internal systems and thus better control of deviations in budgets whereas Tesla and Boeing were more open to fluctuations in their systems making budget deviations challenging. The study underlines the importance of focus of the enterprises for not only to invest in the predictive tools but also to be in line with the strategic decision making and financial execution processes for the insulation of the resilience and the financial discipline of the enterprise in a dynamic setting. https://asej.eu/index.php/asej/article/view/871financial forecastingbudget performancemanagerial agilitybudget integration
spellingShingle Mikhail Lipelis
Bridging Financial Forecasting and Budget Management: New Approaches for Modern Enterprises
Zeszyty Naukowe Wyższej Szkoły Finansów i Prawa w Bielsku-Białej
financial forecasting
budget performance
managerial agility
budget integration
title Bridging Financial Forecasting and Budget Management: New Approaches for Modern Enterprises
title_full Bridging Financial Forecasting and Budget Management: New Approaches for Modern Enterprises
title_fullStr Bridging Financial Forecasting and Budget Management: New Approaches for Modern Enterprises
title_full_unstemmed Bridging Financial Forecasting and Budget Management: New Approaches for Modern Enterprises
title_short Bridging Financial Forecasting and Budget Management: New Approaches for Modern Enterprises
title_sort bridging financial forecasting and budget management new approaches for modern enterprises
topic financial forecasting
budget performance
managerial agility
budget integration
url https://asej.eu/index.php/asej/article/view/871
work_keys_str_mv AT mikhaillipelis bridgingfinancialforecastingandbudgetmanagementnewapproachesformodernenterprises