Comprehensive Budget Management Based On Value Driving

As an importance method for internal administration and control of anenterprise, Comprehensive Budget Management achieves wonderful goal in thepractice of administration for enterprise, which is one of experiences thatsuccessful enterprises gained by many years in developed country. With thearrival of information age and the market competition aggravating，there areenormous changes of external operation environment and inside managementpattern for the enterprise.The traditional comprehensive budget management,focusing on the interests of stockholder and pursuing short-term profit for theenterprise, does not fit the need of economic environment. As taking account ofmaximum profit for the profit related enterprises, creating enterprise valuebecomes the target of comprehensive budget management to maximum the valueof the enterprise.After retrospectively summarizing the previous east and west researchfoundation of comprehensive budget management theory, the paper researcheson e comprehensive budget management based on value-driving, in accompanywith the theory of value creating. Comprehensive budget management founded inthis paper, aimed with value creating and oriented by strategy, makes the valuedriving combining with comprehensive budget management come true throughanalyzing key factor of value driving by discounter cash flow model. Themanagement is founded at the basic of taking account the goal of maximum valueof profit related enterprises.At the basic of this theory, comprehensive budgetmanagement pattern is founded around key factor of value driving. The patterncontains the following budget cycle processes: the foundation of budget indicatorsystem for value driving, budget making, budget executive control, budgetevaluation. Each goal of the processes is to make the value maximum, aroundkey factor of value driving.Finally, This paper studies the practical application pattern with an actual case to illustrate the scientific and practical value of comprehensive budgetmanagement.