Research On Comprehensive Budgetary Management Of Company Group

As a method to make efficient use of company group resources and achieve productivity and profit maximization, the application of Comprehensive Budgetary Management System is becoming more significant in company group management. The Comprehensive Budgetary Management System will cause management to focus in the future, assist them to identify opportunities and adopt proper mitigation measures for future risks.The contemporary Comprehensive Budgetary Management System originated from business management philosophies and managerial accounting theories, and it has profound interrelations with internal and external variables such as company group management style and operating environment. As a technique and method of internal control and operation management in contemporary company group, Comprehensive Budgetary Management System provides not only a safeguard to the implementation of company group strategies, but also a control mechanism in the process of execution. It integrates the functions of planning, coordinating and performance evaluation.Implementation of Comprehensive Budgetary Management System in company group should starts with company group strategies, and it should be target-oriented and focuses on planning. Company group should adopt the appropriate Comprehensive Budgetary Management System that is suitable to its operations, and tailors the different components of budget preparation, budget monitoring, budget analysis and performance evaluation. Various procedures and methods can be used for budget preparation in accordance to the needs; the execution of the budget relies on powerful controls; and budget analysis and performance evaluation form inseparable parts for a successful budget system.Implementation of Comprehensive Budgetary Management System in China is still at its early stage, and Chinese company group are still facing numerous challenges and issues in the process. Education on scientific budget management ideas, linkage of budget management to strategies, and improvement on budget management techniques and methods are all necessary actions to overcome the challenges.