Research On Financial Budget Of L Enterprise Group

With the development of market economy and the deepening of economic restructuring, the modern enterprise is no longer just an economic organization which have a single structure, but is the Commonwealth that are composed by many economic units.One of the most characteristic of the times is organizational form of the enterprise group whose basic structure is Mother and Child Corporation. In producing new profit growth point for the enterprise group, optimizing the allocation of resources, achieving the Group’s internal complementary advantages and expanding market share, its subsidiaries played a very important role. But at the same time, while the enterprise group has expanded rapidly and its business has a rapid development, there is a strange phenomenon that enterprise larger-scale, effective worse. All of this is because the enterprise group hasn’t paid enough attention on how to strengthen the management of the subsidiaries and deal with the parent company’s financial relationships. The management of the parent to subsidiaries is out of control, especially the loss control of the financial management has become an important factor which is restricting the further development of enterprise groups in China.As a very effective management institutional system, the comprehensive budget management is known as"the engine in the enterprise management system", which had been paid more and more attention in the enterprise management mode. And many enterprise of at home and abroad carry out comprehensive budget management in varying degrees and ranges. While as the core content of comprehensive budget, the financial budget has also aroused people’s attention. The implementation of financial budget management, is conducive to strengthening the internal control of the enterprise, is conducive to performance appraisal, is conducive to quantify the goal of various functional departments of the enterprise, which can effective integrate the enterprise resources and maximize the economic efficiency of enterprises.Thus, the financial budget management plays an increasingly important role in enterprises to achieve business objectives.The financial budget management system of L Enterprise Group had been set as the object of study in the paper, research status of budget management at home and abroad had been analyzed. The implementation of the budget manage-ment system for the L Enterprise Group had been effectively analyzed by the support of the theory of the overall budget, budgeting, financial budget. Firstly, theGroup’s financial budget had been effectively analyzed, which include expected income statement, projected balance sheet, expected cash flow statement.Then, the economic benefits ofthe Group had been comprehensively evaluated and analyzed, including the analysis of the financial breakdown of solvency, profitability and viability analysis and DuPont analysis which has used factor analysis. Finally, the corresponding solutions had been put forward, which can solve the problems in the Group’s financial budget management. Then enterprise groups funds can be used more effectively, better configuration. In the implementation of the financial budget management, integral budget management evaluation system should be established in Enterprise Group which is taken charge by the main person in charge, financial budget management process should be strictly implemented, budget control and binding should be improved,"three combinations" should be earnestly carried out, an effective evaluation mechanism should be established. All this can make business strategy be implemented further, enterprise management efficiency and operational efficiency be improved constantly, maximize enterprise value. And this method can be popularized in the same industry.