Research On The Design Of Comprehensive

Comprehensive budget management is a systematic and comprehensive ma nagement activity. Budget management was first used in government agencies. During World War I, American industry went through a rapid development, ent erprises had to face the difficulty that the expanded production scale was not well coordinated to match other issues such as sales scale. As a result, enterpri ses were forced to look for new ways to predict market changes in a timely manner and effectively coordinate internal production and external demand. In order to plan and coordinate business activities, DuPont Chemical Company an d General Motors firstly began to use budget tools. And starting in 1920s, co mprehensive budget management began to be popular in western enterprises, w hile in the early 1980s, comprehensive budget management was introduced into China. However, compared to western companies, comprehensive budget mana gement practices in Chinese enterprises are less effective and less satisfied, esp ecially in those small and medium sized Internet enterprises. Two reasons can explain for this:On the one hand, because of its small size and internal mana gement turmoil, comprehensive budget management is usually ignored by the management of those small and medium sized enterprises, or even though budg et system exists, it is divorced from reality and becomes a mere formality so t hat it does not play its due role. On the other hand, due to the rapidly changi ng environment outside and its own rapid development inside, higher requireme nts are put forward on the management level of enterprises.For these reasons, it is of great practical significance to analyze the status of comprehensive budg et management and make corresponding optimization solutions of these small a nd medium sized Internet enterprises. In this context, this paper took K compa ny as the research object, using theoretical research and field investigation met hods, according to the way of proposing the problem, analyzing the problem a nd solving the problem, in order to build a comprehensive budget management system for K company.This paper firstly described theories of comprehensive budget management (Chapter 2), mainly including the connotation, content, function, four budget m odels and five budget management processes, these are all essential elements o f comprehensive budget management. Comprehensive budget management is def ined as an internal management activity, which is carried out with the guidanc e of corporate strategy and processes of budget preparing, budget issuing, budg et implementing, budget monitoring, budget analyzing and feedback, budget per formance evaluation, in order to reach the goal of maximizing the value of the enterprise. Besides, selecting an appropriate budget management modes is also important. According to the product life cycle theory, budget management can be divided into four modes:capital as the core, sales as the core, cost as the core and cash-flow as the core. On the basis of these theories, then author bri efly introduced an Internet giant----Sogou’s amoeba style comprehensive budget management innovation practice, which combined amoeba management with co mprehensive budget system, in order to summarize the successful experience fo r Internet companies, it can be summarized as two points:one is the hard mea sure---construction of budget management information system, the other is the s oft measure---construction of a comprehensive enterprise culture.Secondly, the paper introduced the basic situation of K Company and the status of its comprehensive budget management (Chapter 3), and put forward f our problems as following:organizational system is not perfect, preparation met hod is not scientific, evaluation mechanisms are inadequate, and information sy stem is lacked. All these four aspects need to be noticed and improved. To thi s end, author conducted field research and interviews with K company business leaders and employees to know about their budget management ideas, suggesti ons and needs in order to design a practical and staff-satisfied comprehensive budget management system.Finally, based in comprehensive theoretical research and problem analysis, author presented two parts of reflection about how to design a comprehensive budget management system (Chapter 4 and 5):One is preparing the environme nt before design, including establishment of an independent budget management organization structure to ensure the authority and independence of comprehensi ve budget management; and develop a budget management information system in order to integrate and share the various information from different units and improve the efficiency and accuracy of budget work; and also strengthen both ideological and capacity building of the staff so as to encourage them to acti vely participate in the corporate’s comprehensive budget management. Furtherm ore, the other one is specific content of the system design, including strategic t arget decomposition, comprehensive budgeting, budget execution, budget analysi s, budget evaluation and incentive, each process is concretely defined upon Cor porate Strategy, Balanced Score Card, Economic Value Added and so on.In this paper, the target company---K company, is a medium sized private enterprise, which is relatively weak in terms of budget management, but at this stage, scholars usually focus on state-owned enterprises or large enterprise gro ups, ignoring small and medium sized enterprises. Therefore there is a big rese arch space for such enterprises. In addition, K company is an Internet educatio n company, with the development of information technology and the "Internet +" universal strategy, the company has a wide horizon of development in the r ising market, thus corresponding management systems have to keep up. As a c onclusion, the study design of K company’s comprehensive budget management system has profound practical significance. This is also the innovation of this paper.Combined with Corporate Strategy, Balanced Score Card and Economic Value Added, author tried to use newer accounting management philosophies to reach more scientific design results. I hope that the results can be used for practical work in K company, and also hope the results are helpful for other small and medium sized Internet enterprises more or less. For the existence of problems, I will continually refine and improve in the future study and practice.