Hunan Province Tobacco Commercial System Comprehensive Budget Management Optimization Research

Overall budget management which originated in the early20th century is a systematic way in internal management control. Budgeting is a systematic way to allocate the financial, substance, and human resources in order to achieve the strategic objectives, enterprise can monitor the progress of the strategic objectives, help to control expenditure, and forecast the cash flow and profit, according to the definition of Arthur Andersen Global Best Practice. Thus, the Budgeting is a tool to link between strategy and performance, but not the ultimate goal. Budgeting Management mainly used to measure and monitor the business performance of enterprises and departments to ensure that the final realization of the company’s strategic objectives based on the allocation of resources.The tobacco industry rationalized the industry’s asset management system and formed parent-subsidiary relationship by investment. Hunan tobacco business systems budget management changed to the Group’s budget management. This passage analyses the current situation of budget management in Hunan tobacco business systems, especially the problems and reasons in the practice of budget management based on the elaboration of a comprehensive theory of budget management. We elaborate fully accounting to the reality of Hunan tobacco, including combing the budget from the business processes, standardizing the budget preparation of standards, strengthening supervision of the budget implementation process, improving the evaluation mechanism and other aspects of the budget in Hunan tobacco business systems, in order to improve the budget management system and the standard of practice in budget management.