Strategic Direction Of The Comprehensive Budget Research

A comprehensive budget management is a full and comprehensive management tool, involved in all directions, the entire process and staff, being at the core of the enterprise management system. However, as the environment changes, the budget also exposed some shortcoming: not yielding the expected results, not supporting a good corporate strategy, the lack of flexibility and adaptability, enable to increase the value. Therefore, this paper points out in connection with corporate strategy theory that a modern enterprise should analyze the value activities with the value-chain theory, establish a comprehensive budget process to improve the focus and the key after the process of integration based on the organizational structure, design the key indicators of the budget by Balanced Score Card. According to the budget cycle, enterprise builds a comprehensive framework for the budget management.In this paper, the structure is divided into five parts. The first part includes introduction, the background and significance of research and practice at home and abroad, embracing ideas and research methods were explained. The paper describes the basic theory related to the strategic direction of the comprehensive budget. Section I make a comprehensive explanation of the meaning of budget management. Section II to V briefly explain strategic management, value chain analysis, ABCM, BSC basic principles, and then make a comprehensive analysis of the feasibility of integrating them into the budget. The third part of the papers focus on building a framework for the strategic direction of the budget. The first section states the overall strategic direction of the budget process. Section II describes the system of budget implementation composed of two levels. Section III describes how to build the budget target with balanced scorecard approach. Section IV discusses the preparation process and methods of the value-chain based budget. Section V presents the budget control and evaluation. The fourth part of the papers discusses successful application of a safeguard mechanism for comprehensive budget management in the enterprise. The fifth part is the conclusion of this paper, reviews and points out the inadequate.The innovation of this paper could be explained as following: based on existing research results, making integration of enterprise strategy, value chain management, Balanced Scorecard and ABCM into budget management, with the intention to build a new framework for the budget, enhancing the strategic direction of the budget. However, in view of the level of relying only on the key areas to explore, there are many details to be further studied.