Research On Total Budget Management System Of Conglomerates

Total budget management; as a management system of modern enterprise, plays an important role in improving the management ability and efficiency of enterprises. Today, this system has been applied widely in many enterprises in China. In recent years, there has been an upsurge of total budget management in our country. But there still exist some problems. One is that total budget management system has not been established to adapt to governance structure and organization structure. The second is that the programming of total budget management is just a realization of the function of budget, and lack of strategic thinking. The third is that non-financial index has not been given enough consideration.In this article, the author, firstly, studied the relationship between organization structure and total budget management, on the basis of which has recomposed conglomerates organization structure, according to enterprise strategy and unification of innovating and controlling ability, and to make organization structure flat. Then this article set up all kinds of duty centers according to the need of total budget management. Moreover, this article put forward that duty centers should include business accounting center and financial settlement center. The business accounting center is to separate the persons who collect or deal with the data completely from the subordinate units and centralize the places to store and collect data. The financial settlement center is established to manage all the capital of the conglomerate in unification to realize the functions of financing, internal supervision and control, and to increase revenue and reduce expenditure.Secondly, during programming of total budget, enterprises should put strategy into the first place and select different budget management mode in accordance with the emphasis of strategy in different periods. Furthermore, this article applied the theory of Balanced Score Card to concretize strategy target, and set up a budget index system which includes not only financial index but also non-financial index.Thirdly, this article gave full expression to the supervision function of total budget management. In addition, the author studied the main body and emphasizes of supervision oftotal budget management, the adjustment and appraisal of budget, and the award and the penalty of budget.Finally, this article utilized a concrete example to analyze implement of total budget management.