Overall Budget Management To Build Effective Internal Control System

It is known that internal control is an important method of modern enterprise management. In facts, failure in operation of enterprise,distortion of accounting information,low efficiency,moral hazard and non law-abiding running and so forth, can be largely thought as the incompletion or losing efficacy of internal control.Thus enhancement and perfection of enterprise internal control has turned out to be one of the hottest issue in both theoretical and practical circle for along time.According to recent situation, Comprehensive Budget Management has not only been largely accepted by domestic and foreign companies, but also implemented as an important means of management.In Recently years, all walks of life try to promote budget management and build up the comprehensive budget management system which concentrates on controlling of cost and pursues maximization of the value of corporate, which plays an active role in accelerating healthy development of industries.However, on the whole, in China budget management is still in the process of optimization and perfection and the weaknesses are as following:backward in budgetary technique, low budget execution rate, citizens'lack of sense of budget and imperfect budget evaluation.Due to compiling, adjustment, operation, analysis and evaluation of budget are very technical and complex, thus the establishment of enterprise budget system, finalization of budget content and budget operation turn out to be a complicated project.However, from current situation, the research on comprehensive budget and internal control are mostly independent, that's why it still needs research and improvement to check whether the two have necessary connection, whether they can provide mutual benefits for each other and if effectively combining of the two, could the enterprise internal control be efficiently taken into practice so as to realize maximization of enterprise operation profit.Thus, this paper uses a research method which is to combine the normative research and empirical research, of which normative research is the main line. The overall research process of this paper shows systematic way of thought which requires people to treat study objectives as a whole so as to comprehensively handle and control the objectives.This paper researches internal control and comprehensive budget management as a whole and builds up a closed loop control system through process control.On one hand, this paper studies not only on the connotative meanings, essences, the connections and commons between the internal control and comprehensive budget, but also on the problems during the implementation so as to figure out the relations between the two, and finally states out that comprehensive budget is a manifestation of internal control and that, it has a synergistic effect on internal control and also can help effectively implementation of enterprise internal control.As the core of the financial management of corporation, comprehensive budget can lead while limit the internal control. Except that, several detailed achievable means are also listed out to prove that comprehensive budget management can realize internal control.On the other hand, the writer gets the sources from years'practical work experience on internal control and comprehensive budget management and also from the example of budget management and build-up of internal control system of SM Group China. This paper puts forward a systematical discussion on how to realize internal control of corporation through setting up comprehensive budget management system and then come to a conclusion that trengthening internal control from the angle of comprehensive budget management will benefit the company's .further and healthy development.Company can establish scientific and reasonable comprehensive budget management system suiting for company's own feature so that to realize all personnel, the whole process and all-round internal control, to enhance the management level, to raise corporation performance and to increase competitiveness.