Comprehensive budget management refers to the business activities, investment activities and fund-raising activities of enterprises in a predetermined period in order to achieve strategic planning and business objectives. Plan, forecast, calculate and describe reasonably with the help of budget, and conduct a series of management activities such as measurement, control, adjustment, accounting, analysis, reporting, evaluation, rewards and punishments based on budget.
First, the composition of a comprehensive budget management system
The central link of an enterprise's comprehensive budget management system is comprehensive budget management, which organically unifies the enterprise's production and operation objectives and financial management objectives, focuses on the management of enterprise's capital flow, and comprehensively manages all aspects of enterprise's production, operation and financial management.
The budget management system of an enterprise includes three aspects: budget management organization system, budget management system and budget management procedure system. Organizational system is the basis of comprehensive budget management and the premise for enterprises to successfully implement comprehensive budget management system; Institutional system provides institutional guarantee for enterprises to smoothly implement comprehensive budget management system; The procedure system has formulated steps and measures for the smooth development of the enterprise's comprehensive budget management system. These three aspects are interrelated, mutually restricted and complementary, which together constitute a comprehensive budget management system.
Second, the effectiveness of the comprehensive budget management system
The effectiveness of the comprehensive budget management system is mainly reflected in three aspects.
First, comprehensive budget management closely focuses on the strategic objectives of enterprises, fully considers the interests of enterprise operators, investors and shareholders, and makes strategic plans for realizing the strategic objectives of enterprises. Comprehensive budget management refines the overall strategic objectives and annual business plans of enterprises, and comprehensively manages all aspects of financial management of production and operation of enterprises.
Second, the budget execution department of the enterprise adopts scientific and reasonable methods to analyze and compare the budget execution and find out the reasons for the actual deviation from the budget in time. Enterprise management authorities should find out whether there are defects in internal control, adjust business activities around business objectives, revise and improve unreasonable aspects of internal control in time, and ensure that business activities under internal control meet the requirements of enterprise strategic objectives.
Third, comprehensive budget management through the scientific analysis and evaluation of the implementation results of budget management, such as whether it is in line with reality, operability, economic benefits, etc., comprehensively manage all aspects of enterprise production, operation, finance and other aspects, and rationally allocate enterprise resources. Unify the budgeting process and business planning process organically, make the resource allocation based on scientific, reasonable and effective allocation, give full play to the best economic benefits of resource allocation, and thus obtain the best overall economic benefits.
Third, the overall budget management system challenges
(A) economic globalization makes comprehensive budget management face challenges.
Economic globalization has made the economic ties between countries more and more close, and the trade relations, financial relations, production relations, capital relations and circulation relations have merged, so the economic situation faced by comprehensive budget management is complicated. Industrial upgrading, industrial transformation, production modernization, consumer demand and economic development put forward higher requirements for comprehensive budget management. Under the severe economic situation, comprehensive budget management faces more tests and challenges, and the formulation and implementation of the budget consider more factors and are more difficult.
(B) The knowledge economy makes off-balance sheet assets extremely important.
With the rapid development of market economy, the proportion of factory buildings, machinery and equipment and working capital, the main factors of economic growth, has decreased, while the proportion of intangible assets based on knowledge, such as patents, proprietary technologies, trademarks and goodwill, has increased. In the current accounting theory and practice, the expression of tangible assets is relatively perfect, and the expression of intangible assets can't keep up with the needs of financial management practice. This will directly affect the guiding role of comprehensive budget management in enterprise financial management.
(C) The development of the network challenges the overall budget management.
With the rapid development of network, the production, operation, sales and financial management of enterprises have been electronic. The scale of enterprise's production and operation, the quantity and price of raw materials procurement all depend on the information quickly transmitted by electronic networks and electronic platforms. The faster the information is transmitted, the more the production and operation of enterprises meet the market demand. The comprehensive budget management mode should also be electronic, which can quickly feed back market demand and financial information and give full play to the management function of comprehensive budget.
(D) Economic transformation makes comprehensive budget management face more environmental changes.
At present, China's economy is undergoing rapid development and transformation, economic reform measures are constantly being introduced, and reform and opening up continue to deepen. At the same time, the innovation consciousness of enterprises is constantly enhanced, the scientific and technological content of products is constantly improved, the services provided are more perfect and the management concept is more advanced. As an internal management mode of an enterprise, comprehensive budget management system must be quickly adjusted with the changes of enterprise scale and external environment, so that comprehensive budget management can play its due role.
Fourth, the problems of comprehensive budget management
(A) information asymmetry in the formulation process
In the process of budgeting, the superior management department holds the overall, comprehensive and external information of the enterprise, while the subordinate executive department holds the specific and detailed information of the enterprise. If the information mastered by superiors and subordinates is not fully communicated and the ideas are not effectively linked, it is easy to cause the comprehensive budget management indicators formulated by superior management departments to be unrealistic and inoperable. Proceeding from the interests of the department, the subordinate executive departments resist the implementation of comprehensive budget management, and there are some problems such as overestimating costs, inflating expenses and falsifying performance.
(B) excessive emphasis on the particularity of enterprises
In the process of budget preparation, it is necessary to go deep into the actual situation of enterprises and fully consider the particularity of some businesses, so that the budget indicators can fully reflect the actual changes and be operable. In the process of budget implementation, even if there are environmental changes and market fluctuations, the budget can be implemented smoothly. Budgeting should be flexible, the implementation process should not be adjusted at will, and it should be carefully implemented to play its due role in comprehensive budget management.
(C) the reward and punishment evaluation system is unreasonable
Part of the comprehensive budget management evaluation system is not objective and fair, the reward and punishment system is unreasonable, the performance evaluation is not realistic, and the comprehensive budget management effect is not obvious.
A scientific and reasonable comprehensive budget performance evaluation index system must have the following characteristics.
1. Evaluation index innovation
The realization of enterprise strategic objectives is influenced by many factors, such as financial factors and non-financial factors. Therefore, the formulation of comprehensive management system indicators should be based on management levels, tasks and other conditions, and should also fully consider financial factors and non-financial factors and other information.
2. Innovation of evaluation methods
The evaluation method should adopt different methods according to different analysis objects, such as quantitative evaluation, qualitative evaluation, comprehensive evaluation, dynamic evaluation, hierarchical analysis, structural analysis and factor analysis.
3. Innovation of incentive mechanism
The incentive mechanism should fully consider the cultural background and long-term performance of the enterprise, generate sufficient attraction and incentive effect, take into account the enterprise value created by subordinate executive departments and employees, and give full play to the enthusiasm, initiative and creativity of the departments. There should be clear reward and punishment measures, and the rewards and punishments should be clear, and established punishment measures should be taken for departments that have not completed the budget implementation, so as to promote the improvement of the overall execution of subordinate execution departments.
V. Suggestions on Improving Comprehensive Budget Management
(a) Full participation in the general budget
A comprehensive budget can be formulated in the form of full participation, and the specific steps are as follows.
1. The senior management of the enterprise puts forward the overall goal of the enterprise and the sub-goals of the department.
2. Grassroots units shall formulate budget plans according to the principle that superiors manage subordinates, and report them to subordinate departments.
3 departments according to the budget plan submitted by the grass-roots units, the preparation of departmental budget draft, and report to the budget committee.
4. The Budget Committee examines the draft budgets of all departments, communicates with all departments, and formulates the enterprise budget plan after comprehensive balance. The budget plan forms the final budget after the opinions of all departments are unified. After the final budget is approved by the top level of the enterprise, it becomes the final budget and is distributed to all departments for implementation step by step.
(2) Strictly implement the comprehensive budget.
As a plan for future production, operation and financial management, enterprise budget can effectively strengthen management, enhance market competitiveness and improve economic benefits. Therefore, the introduction of comprehensive budget is not to fill the blank of enterprise system, but as a way to strengthen enterprise management, which should be implemented in practice and not become a mere formality. If the budget management of an enterprise is put in place, the production, operation and financial management of the enterprise will be more scientific and reasonable, which is more conducive to the survival and development of the enterprise.
(C) scientific evaluation of budget management
The key to implementing comprehensive budget management is to strengthen evaluation and establish a scientific and reasonable evaluation system. Budget evaluation is divided into dynamic evaluation and comprehensive evaluation. Dynamic evaluation refers to finding, scientifically analyzing and dealing with the reasons for the differences between budget results and budget indicators in the process of budget implementation. If necessary, written materials should be provided to explain the causes of budget variance, and reported to the budget management committee for approval, which belongs to process control. Comprehensive evaluation refers to the year-end analysis and evaluation of the budget completion of budget subjects. Dynamic evaluation and comprehensive evaluation complement each other and serve the comprehensive budget evaluation.
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Reconstruct the overall budget management system of enterprises
abstract:
With the continuous development of China's market economy, the modern enterprise system has been gradually established. In order to achieve long-term development, modern enterprises have introduced the method of comprehensive budget management in their management. The application of comprehensive budget management system has been recognized by many enterprises, and the research on comprehensive budget management system in China is constantly improving. Based on the basic theory of comprehensive budget management system, this paper analyzes the present situation of comprehensive budget management system in tobacco enterprises, and puts forward some suggestions on reconstructing comprehensive budget management system in order to improve the level of comprehensive budget management in enterprises.
Key words:
Comprehensive budget management system; Reconstruction; Management thesis
I. Overview of Comprehensive Budget Management System
(A) the meaning of comprehensive budget management
Comprehensive budget management is the scientific and reasonable allocation, review and control of financial resources and non-financial resources of various departments and units by using the method of budget, so that the business activities of enterprises can be carried out in an orderly manner and the value can be maximized. The management under this mode is a mode of full participation of enterprises.
(B) the goal of comprehensive budget management
On the one hand, the goal of comprehensive budget management should be based on enterprise goals, and the maximization of shareholder wealth is the ultimate goal of enterprise existence and development. In order to achieve this goal, enterprises need to control the production scale and cost of products, determine the goal of comprehensive budget management according to the basic requirements of customers, and finally realize the goal of enterprises. On the other hand, strategic management is a long-term decision-making model of enterprises, which can play a decisive role in the business direction and objectives of enterprises. The strategic objectives of an enterprise need to be refined and decomposed through the budget, so the strategic objectives of the enterprise should be the main support when formulating the comprehensive budget management objectives.
(C) the role of comprehensive budget management
First of all, it is conducive to the standardization of enterprise business processes. The comprehensive budget involves not only the business activities of all departments of the head office, but also the related economic activities of subsidiaries of the head office. The strategic objectives of the head office and subsidiaries can be achieved as soon as possible through a comprehensive budget. At the same time, comprehensive budget management can promote the standardization of enterprise production and operation, restrain the process of enterprise production and operation, and improve the stability of enterprise production and operation. Secondly, it is conducive to strengthening the control of enterprises. Budget is an effective tool for control before, during and after the event, which helps enterprise management to understand and monitor the process and operation of the enterprise, find out the problems existing in the process in time, strengthen the supervision and control of financial work, solve the problems in time and reduce the business risk of the enterprise. Third, it provides a basis for performance management. Comprehensive budget is convenient for the head office to assess its subsidiaries, effectively distinguish rewards and punishments, mobilize the enthusiasm of subsidiaries and employees, and is conducive to the long-term development of the company.
Second, the status quo of enterprise comprehensive budget management system —— Taking tobacco enterprises as an example
With the increasingly fierce market competition faced by China's tobacco industry, the comprehensive budget management model has become the main financial management model of the tobacco industry at this stage, and the comprehensive budget management model has also changed from the original absence and singleness to the present existence and comprehensiveness. However, there are still some problems in the process of building a comprehensive budget management system. The main problems are as follows:
(A) the understanding of comprehensive budget management is not in place
On the one hand, some tobacco enterprises only regard comprehensive budget as a simple financial work, and the financial department is solely responsible for controlling and formulating comprehensive budget, which shows that tobacco enterprises do not have a good understanding of comprehensive budget management, which directly reduces the enthusiasm of enterprise personnel to participate in comprehensive budget, which is not conducive to the improvement of comprehensive budget level of tobacco enterprises. Some tobacco enterprises only regard the comprehensive budget as a supplement to the enterprise management system, which leads to the ineffective implementation of tobacco comprehensive budget management and can not play its important role better. On the other hand, comprehensive budget management lacks the strategic guidance of enterprises, some tobacco enterprises do not realize the important role of enterprise development strategy in comprehensive budget management, and the formulation of enterprise strategic objectives is serious, so comprehensive budget without strategic support is soulless, and comprehensive budget management without strategic support is meaningless.
(B) the lack of a sound comprehensive budget management assessment mechanism
In order to better realize the comparison between comprehensive budget management and the actual situation, find out the degree of deviation in time and find out the reasons for the deviation, a comprehensive budget management assessment mechanism needs to be improved in the comprehensive budget management system. However, from the actual situation, some tobacco enterprises in China lack perfect comprehensive budget assessment methods, and the assessment is not in place and the operability is poor, which directly reduces the seriousness and authority of comprehensive budget management in tobacco enterprises. For example, some tobacco enterprises have problems in the implementation of comprehensive budget management assessment indicators, which directly affects the smooth progress of comprehensive budget management assessment, and cannot form a rigid assessment mechanism and manage employees scientifically and reasonably according to the assessment results.
(C) the overall budget management of poor relevance
From the actual situation, China's tobacco enterprises have built a comprehensive budget management system, but there are still functions that attach importance to the planning, control and assessment of the comprehensive budget itself, and fail to realize the importance of coordinating and handling the relationship between the comprehensive budget management and other management methods. For example, the relationship between human resource management and comprehensive budget management, the relationship between financial information system and comprehensive budget management, and the relationship between marketing management information system and comprehensive budget management have not been handled well. How to coordinate the responsibilities and rights of municipal and county-level branches and how to use comprehensive budget to motivate county-level branches has become another issue worthy of consideration for tobacco enterprises.
Three, the enterprise comprehensive budget management system reconstruction suggestions
(A) enhance the awareness of comprehensive budget management
Improving the awareness of comprehensive budget management is the premise for tobacco enterprises to build a comprehensive budget management system. To implement effective comprehensive budget management in tobacco enterprises, we must first break the original traditional concept of budget management, ensure the scientific concept of comprehensive budget management, realize that comprehensive budget management can bring greater economic benefits to enterprises, and change the original concept that budget is only budget. The managers of tobacco enterprises should make all employees realize that comprehensive budget management is a process of full participation, and leaders should directly participate in the comprehensive budget work and carry out their work in strict accordance with the comprehensive budget management system.
(2) Establish and improve the comprehensive budget assessment mechanism.
As a scientific management system, the comprehensive budget management system should strictly check the implementation of the budget. Therefore, tobacco enterprises should establish and improve the comprehensive budget assessment mechanism. On the one hand, the budget assessment of tobacco enterprises should objectively compare the budget preparation indicators with the budget implementation results, carefully analyze and find out the shortcomings in the budget implementation process, take reasonable measures in time, correct the deviation in comprehensive budget management and reduce the overall budget risk. On the other hand, in order to better mobilize the enthusiasm of employees, tobacco enterprises should effectively combine the implementation results of comprehensive budget with the reward and punishment mechanism of employees, so as to realize the goal of comprehensive budget management as soon as possible. At the same time, in order to realize the diversity of comprehensive budget assessment indicators, tobacco enterprises should choose some qualitative indicators and quantitative indicators to formulate comprehensive budget assessment indicators from the management characteristics and business characteristics of enterprises.
(c) Standardize the comprehensive budgeting process.
In order to improve the overall budget management level, tobacco enterprises must proceed from reality and further standardize the overall budget process. Generally speaking, the process of comprehensive budget preparation is divided into the following aspects: issuing targets, preparing reports, checking and balancing, approving, and issuing for implementation.
1. The budget management committee of the target tobacco enterprise should proceed from the actual situation and future development strategy of the enterprise, predict the future economic situation of the enterprise, put forward the budget target of the enterprise for the next year, formulate scientific budget policies and convey them to the relevant departments.
2. Prepare and report to all departments of tobacco enterprises. Under the guidance of the budget objectives and policies issued by the Budget Management Committee, formulate the budget management plan of the department and report it to the enterprise budget management department.
3. Review and balance the budget management department of tobacco enterprises. After receiving the budget plans of various departments, it is necessary to summarize and review the budget plans in time, which will help to find out the problems existing in the budget plans in time, and put forward corresponding rectification opinions and feed them back to relevant departments, which can correct the budget plans in time.
4. Examining and approving the budget management committee of tobacco enterprises has the right to instruct the relevant departments to carry out rectification when receiving the budget plan that does not meet the development strategy and budget objectives of the enterprise, and prepare the annual budget management plan of the enterprise after rectification and submit it to the top management of the enterprise for examination and approval.
5. After the release and implementation of the annual budget management plan approved by the top management of tobacco enterprises, the budget management committee shall decompose the annual budget management plan into the relevant index system, distribute it to relevant departments, and strictly supervise the implementation of relevant departments.
(D) to strengthen the information construction of comprehensive budget management
With the advent of the information age, tobacco enterprises should strengthen information construction in the process of building a comprehensive budget management system. For example, ERP software can be properly introduced into comprehensive budget management to further improve the accuracy and work efficiency of enterprise comprehensive budget management. After introducing ERP software, tobacco enterprises can greatly reduce the workload of comprehensive budget and improve work efficiency. Enterprises should import relevant data into ERP software, so that comprehensive budget statements will be automatically generated in the system, which can greatly reduce the workload of preparing budget statements. At the same time, ERP system can also avoid the problem of repeated data entry and reduce the error rate of budget work. After introducing ERP software, tobacco enterprises should also pay attention to daily maintenance, strengthen the establishment of firewall, and prevent financial risks caused by malicious intrusion by hackers.
Four. Concluding remarks
To sum up, comprehensive budget management can play a greater role in the daily management of enterprises, so it is very important for enterprises to build a comprehensive budget management system. Enterprises should recognize the shortcomings in their own comprehensive budget management system, proceed from the actual situation, adopt scientific and reasonable methods, improve the level of comprehensive budget management, further improve the level of financial management, and improve their comprehensive competitiveness to ensure that enterprises are invincible in the fierce market competition.