Research On Reconstruction Of Comprehensive Budget Management System Of GS Petro Company

In recent years,with the steady growth of China’s economy and rapid development of automobile market,an increasing social demand of gasoline and diesel has become the main reason to increase the sales year by year for the GS Petro Company of L Province.With the continuous development of petro sales market,it’s particularly important to manage dynamic budgets,since it will not only promote the continuous development of existing business but also expand other related business.Thus,the risk of comprehensive budget management has become one of the most urgent issues that the company should pay attention to.Therefore,this thesis integrated the recourses of activities of Petro Company by analyzing the current operation status and jobs in all departments.Furthermore,this thesis focused on the actions that the GS Petro Company should take to establish a sustainable and healthy business growth through the comprehensive budget management.To achieve the research goal,we analyzed the problems encountered in the process of comprehensive budget management and evaluated its risk in order to prevent the potential negative consequence to happen.This thesis took the GS Petro Company of L Province as an example to identify the potential problems that may negatively impact the company by analyzing the current operation of GS Petro Company and comparing the financial data in recent three years.Then,we integrated the balanced score card and budget management system and established an appropriate comprehensive budget management system.Furthermore,the four dimensions of the balanced scorecard were taken into account with the company’s comprehensive budget management system,which made the budget value more accurate and closer to the actual value.Meanwhile,we improved the execution of comprehensive budget management by cooperating the sales budget,cost budget,capital budget,cash flow budget,connecting the business plan,budget management,internal control,analysis and evaluation.The comprehensive budget management of GS Petro Company of L Province should be based on its medium and long-term development strategies,taking market as the guide,the company benefits as the starting point,the performance evaluation as foothold,and the financial management system as protection.However,due to the complexity of its own system and all aspects of the company’s operation,there are many problems in the implementation process.This thesis analyzed the problems in the application of comprehensive budget management in detail,and proved that the combination of balanced score card and comprehensive budget management was effective to prevent the comprehensive budget risk from the practical point of view.