Research On Application Of Comprehensive Budget Anagement In H Company

With the structural reform in market economy constantly deepening, enterprises are confronted with tremendous changes from the market environment. In order to cope with the transition and challenge posed by the macro-environment, comprehensive budget management, as an important comprising part of the enterprise management, is playing an important role in controlling the enterprise development. Therefore, enterprise comprehensive budget management, as an internal management control approach integrating the functions of planning, coordination, control, evaluation and incentive etc., is increasingly valued by the enterprise management level and has been promoted by many domestic enterprises. However, the comprehensive budget management for most of the enterprises is often restricted to the financial field and isn’t effectively combined with the enterprise strategy, thus in reality the budget only has an obvious short-term effect and lacks the support for the long-term strategy. The budget management for the management level hasn’t fulfilled the function that the budget weighs in the business, comprehensively manages and controls the enterprise operation, and promotes the achievement of the enterprise strategic objective. The thesis, based on the understanding of the environment described above, combined with the overseas advanced budget management theories and thoughts, and taking into consideration of the current status of the comprehensive budget management in H Company, proposes the improving strategy suitable for the comprehensive budget management in H Company.For the purpose of studying and promoting the development and improvement of the comprehensive budget management in H Company, the main part of this thesis starts from H Company’s general situation, expatiates on the implementation planning of comprehensive budget management system, analyzes in detail the situation on comprehensive budget management implementation and operation in the company, and classifies and summarizes the strategy orientation, design principle and characteristics of H Company’s current comprehensive budget management system in accordance with actual situation of H Company. On this basis, this thesis makes a research on H Company’s comprehensive budget management system, applies strategy and Balance Score Card to budget management, optimizes the design for H Company’s comprehensive budget management system, explains budget implementation process and operation situation of H Company in detail from such aspects regarding budget making, implementation, control and evaluation etc., establishes a sound comprehensive budget management organization, sets up scientific and reasonable budget targets, completes comprehensive budget making process, improves comprehensive budget management supervision, control and evaluation mechanism etc, so that enterprise strategy can be integrated with budget effectively and the employees can better understand and manage the operation process they engage in. Comprehensive budget management of H Company is a highly integrated management system to control and restrict the enterprise, which helps the enterprise control the fund flow dynamics, manage cost distribution, effectively predict the enterprise profit and cash flow, and facilitate the communication within the enterprise as well as evaluation and rewards and punishment of each responsible unit and individual in a further effort to reach the target of supervising the implementation schedule of the enterprise strategy.A certain level of improvement in budget making, budget implementation, budget control and evaluation etc., has been achieved in H Company since the implementing of comprehensive budget management system. In particular, the combination of budget management with organization performance evaluation and remuneration system guarantees the effective implementation of comprehensive budget management, hence the cost has been well controlled correspondingly, providing an effective criteria of making a scientific judgment and decision for the top management level of H Company. However, this system has not been applied for a long time and is incomplete; accordingly there are still some problems. This thesis aims at making a comprehensive analysis on budget making, control and analysis, evaluation etc. in H Company’s budget management system and intends to find out the problems still existing in this system. The optimization of comprehensive budget management system by H Company has been evaluated and meanwhile the improvement measures have been proposed in hope of providing references for effective implementation of comprehensive management in H Company.