The Analysis Of Formation And Domination For ABC Insurance Company’s Comprehensive Budget Management

After China’s entry into WTO in2001, no matter the domestic enterprisesmoving to the foreign countries or the ones imported by China show essentialdifference on the management quality compared with the enterprises that stick to theconvention. It does not lie in high quality of the business people; instead, it lies in thatthey adopt more advanced management method–comprehensive budgetmanagement system. The budget management is to make use of the budget todistribute, verify and control all financial and non-financial resource of alldepartments and units inside the company, with the purpose of effectively organizingand coordinating the production and operation activities, and accomplishing theestablished strategic development targets.[1]The comprehensive budget managementis comprehensively participated by the enterprise and all staffs during the wholeprocess. Under the guidance of the enterprise development strategy, thecomprehensive budget management is a series of activities carried out by theenterprise focusing on the budget. It has already become one of the indispensable corecontent for the enterprise management, with the purpose of comprehensivelyimproving the profitability and the efficiency of the enterprise operation andmanagement, and thus promoting the maximization of the enterprise value andbringing benefit to the stakeholders. With the constant development of the economyand the continuous deepening of the reform, especially under such a downturn of theglobal economy currently, the enterprises have faced severer economic environmentand increasingly serious competitiveness in the same industry. Our domesticinsurance enterprises have already attached unprecedented importance to the comprehensive budget management. A great majority of them have already adoptedsuch advanced management method. As our domestic insurance enterprises startedsuch business so late, most of them belong to medium-and small-sized insurancecompanies. They cannot stand the great impact from the market economy. Besides,there are many human factors in the budget management practice, so that it is reallyso difficult to bring its real and important effect into full play. Accordingly, this papertakes the comprehensive budget management compilation and control of ABCInsurance Company as the research object. Under the guidance of the comprehensivebudget management theory, it systematically and deeply analyzes the practice of ABCInsurance Company, points out the problems and puts forward rational suggestions.The implementation of the comprehensive budget management in the insuranceindustry promotes and ensures the fulfillment of the future operation anddevelopment strategy target of the insurance enterprises, accelerates the improvementof the working efficiency and economic benefit, and strengthens the competitivecapacity of the enterprises in the market economy. Meanwhile, some problems needto be solved, such as incomplete change of the concept, imperfect budget compilation,deficiency of the budget control, etc. To improve the comprehensive budgetmanagement of the small-and medium-sized insurance company, the leaders shouldfirstly clarify and attach great importance to the status of the comprehensive budgetmanagement in the enterprise management, avoid the one-sidedness, establish soundorganization framework of the budget management, and formulate budgetmanagement policy and complete budget control system applicable to the enterprise.This paper takes ABC Insurance Company as an example. According to the basictheory of the comprehensive budget management, as well as the actual status of itscompilation and implementation of ABC Insurance Company, this paper puts forwardrational suggestions from the aspects of budget control and implementation. And it isdivided into four chapters. The first chapter is the introduction. It introduces the background of the subject, the purpose and significance of this research, as well as theimportance of carrying out the comprehensive budget management, which is attachedgreat importance to. The second chapter is to briefly introduce the profile of ABCInsurance Company and point out what of the comprehensive budget managementshould be improved from the macroscopic and microcosmic aspects, so as to layfoundation for the following text. The third chapter is to introduce the practice of thecomprehensive budget compilation of ABC Company in detail from the processdimension on the basis of compiling the comprehensive budget. The fourth chapter isto analyze the current status of the serious disadvantage aiming at the deficiency ofthe current budget management control of ABC Insurance Company, and put forwarddetailed budget control and analysis according to the information of the budgetcompilation. The last part is the conclusions. It puts forward improvementsuggestions on the comprehensive budget management from the macroscopic andmicrocosmic aspects aiming at the existing problems of its compilation and controlpractice of ABC Company.