Research On Business Total Budget Management Modes

Total budgetary management (TBM) is a modern business management instrument. It is playing more and more significant role in the practice. With the integration of the funds, business and information, it can achieve the goal of allocating resources, carrying out strategy effectively, improving the level of management continuously and increasing the value steadily. TBM has been widely used as the significant component part of the business internal administration in the western developed countries. Implementing TBM is in favor of the improvement of the core-competition and promotes the business comprehensive management level.The thesis proceeds with the definition analyzing the elements, which form TBM, pointing out that the mode is formed by elements. Different modes are formed by different compositions of the elements. If we change one (or some) element of a mode, the new mode is formed in this way. The elements of TBM include: start-point of budget, Content of budget, Methods of budget, Procedure of budget.Then the thesis present traditional modes of TBM, it is included four modes just like TBM based selling etc. and talking over strongpoint and shortcoming about traditional modes.At last the theses discuss the four innovate TBM that is keystone of the thesis. The four innovations TBM include: TBM based EVA. TBM based stratagem. TBM based activity. TBM based the Balanced Scorecard (BSC).TBM based EVA, this mode is taken all cost of funds into account in equality if we comparing this mode with traditional TBM, we can make sure business value through this mode.TBM based stratagem. Introducing the mode can be combined development idea with active projection, making business operational goal into quantity, can be adjusted daily active operational behavior, convenient for business evading risk. The start-point of TBM based activity is the forecasting market demand. This mode used idea of the Activity-based Costing and job-management, enhanced exact of the budget, strengthened the process of budget implementing, and overcame the shortcoming of traditional budget that thinking much of financial outstanding achievement and ignoring rest, perfected the budget evaluating.TBM based the Balanced Scorecard (BSC) make the business stratagem as start-point of the budget drafting, using BSC combine business stratagem with budget, and transform the business stratagem into BSC of various stratum of the business, then linking key success factors confirm the key performance index, according to the key performance index determining active project, according to the active project collocating business resources.