Financial budget mainly refers to a budget mechanism based on the development status and trend of enterprises. From the content point of view, the annual financial budget of an enterprise includes cash budget, assets and liabilities forecast table and profit forecast table. Formally speaking, it mainly adopts the form of financial report; In essence, the annual financial budget of an enterprise is actually a tool and means of enterprise management.

For an enterprise's annual financial budget, its connotation is not complicated. As we all know, the annual financial budget of an enterprise is actually a budget mechanism for the development and state of the enterprise in the next year. Its main contents include fund raising and distribution, overall operating results and cash receipts and payments, analysis and so on. As far as the form of an enterprise's annual financial budget is concerned, it is not much different from ordinary financial statements, but in terms of enterprise management, the annual financial budget exists as an important reference and plays a vital role in major decision-making, management and financial performance evaluation of enterprises.

Compilation principle

(1) Budget indicators should be scientific and perfect.

The preparation of financial budget should make a scientific analysis of assets, liabilities, input cost, profit income and expenditure, profit rate and cash flow.

(2) The contents of the budget should be fully covered.

As a complex system engineering, the annual financial budget of an enterprise needs the relevant staff to fully consider the daily operation of the enterprise and fully reflect the funds of different departments of the enterprise.

(3) The budget should assess risks.

Because the annual financial budget of an enterprise is related to the preparation of financial revenue and expenditure in the next year, the existence of related risks becomes an inevitable problem. Therefore, the relevant staff should have a full understanding of the risks of the budget, do a good job in related work, and actively respond to the existence of risks. For example, in the actual work of making a budget plan, the relevant staff should first make a risk assessment of foreign investment, mergers and acquisitions, futures investment and other issues of the enterprise, and take active control measures and countermeasures to reduce the losses caused by risks.