Study On The Budget Management Of The Chinese Small And Medium Enterprises

With the development of theory research on budget management and emergence of many successful cases, budget management has been promoted and developed unprecedentedly. Many small and medium enterprises have also put budget management into practice. However, many problems emerged such as incomplete understanding of budget management, unclear budget object, giving added weight to budget and ignorant of conduct, incomplete evaluation system etc. Small and medium enterprise is one of the important forces which support the stable economic development of a country, which plays an important role in stabilizing economy, creating jobs, importing and providing social services. Therefore, it is an essential task for us to strengthen the research on budget management of small and medium enterprises, and bring it into fullplay.This paper firstly puts forward research background and significance, defines some related ideas and introduces the approaches applied and its frame. And then the main body comes.The main body is made up of three parts. The first part introduces the development of budget management and its research summary at home and abroad. In 1951, Capital Budget written by Joel Dean (American) symbolized the beginning of budget management research. Since then, it sees the following stages: the initial stage focusing on standard cost control, the growth stage focusing on full participation and financial planning, the mature stage focusing on all-sided budget management. Now it enters into the stage of improvement of budget management and exceeding budget management research. On the basis of research on budget management at home and abroad, we find that these researches mainly focus on large-scale enterprises and group corporations. There is few research on small and medium enterprises especially Chinese small and medium enterprises. This is one of the main factors why the author of this paper focuses on the budget management of small and medium enterprises.Firstly, the second part analyzes some related problems about Chinese small and medium enterprises. It concludes some characteristics of the objectives of budget management, the budget organization structure, the budget drafting content, its enforcement and supervision of small and medium enterprises etc. Secondly, it introduces the current situation of Chinese small and medium enterprises'budget management. The government has enforced favorable policies to support these enterprises to conduct budget management. Most administrators have realized the necessity of carrying out budget management. They have set up budget organs and picked out experts to be in charge of the budget management. Some enterprises have started to use budget management software. The end of this part analyzes the problems emerging in preparation, budgeting, conducting and evaluation stage of small and medium enterprise.The third part makes an analysis on how to solve problems emerging in budget management, improve the budget system to increasingly strengthen the competition of small and medium enterprise. By analyzing Chengzhuang Coal Washery (Shanxi), EVERGO Group (Zhejiang) and Only Education Group (Shanghai), the paper puts forward three ideas as follows: firstly, fostering budget culture to lay a foundation for small and medium enterprise; secondly, strengthening the construction of conducting budget to build up the core of budget management; thirdly, popularizing the use of budget software to accelerate budget management process. These ideas aim at increasingly promoting the construction of budget management of Chinese small and medium enterprises, enabling these enterprises to support our country's stable and fast economic development and industrial structure upgrading.