Research Of Comprehensive Budget Management Of TD Building Materials Company Based On Balanced Score Card

Since the 20 th century,comprehensive budget management has been one of the important means of enterprise development.After hundreds of years of continuous changes and development,it has eventually formed the management system of comprehensive budget that has been widely used in today's enterprises.The reason for the “comprehensive” in comprehensive budget management is that it includes the meaning of “whole amount,whole members,whole process”.In comprehensive budget,all parts of an enterprise are included into the budget management system,including all the departments in an enterprise,even all the members.The comprehensive budget management plays an important part in establishing modern enterprise system,improving the level of enterprises,and enhancing enterprise competitiveness.The traditional comprehensive budget system includes three parts: operational budget,financial budget and financial support,among which the financial budget plan is based on the sales budget and the operational budget.However,this budget system which is based on the stable external environment,the peaceful market competition and the financial objective logic,has been unable to adapt to the modern dynamic market environment.The traditional comprehensive budget management system can't give full play of its proper functions,on the contrary,it has restricted the speed of development of an enterprise.Therefore,this thesis will improve the traditional comprehensive budget management system by balanced score card,analyze the feasibility and necessity of combining comprehensive budget and balanced score card,and eventually form the comprehensive budget management system which is more adaptable to the market changes.This thesis takes TD building materials company as an example,analyzes the current budget of the company,finds out the problems and makes concrete analyses of the problems.Through analysis and contrast on the recent three years of financial data of the enterprise,the thesis finds out the problems,defects in the current budget system and the current strategic objectives of the enterprise.The comprehensive budget management system which is based on the balanced score card and adaptable to the enterprise is established and the four distinct dimensions of the balanced score card into the comprehensive budget management are blended.Through making a concrete analysis of the financial and non-financial indicators,a comprehensive budget management system which is more adaptable to the development and changes of the market for TD building materials company is established.Through this new system,TD building materials company can be more close to the its strategic objectives,and can complete the good vision of the company's long-term development.Comparing with the traditional budget management system,the comprehensive budget management system based on the balanced score card adds the analysis of non-financial indicators,which are often ignored by the company but are the factors with major effects.These factors seem to be scattered,but they are of vital importance to the company's development.This thesis focuses on TD building materials company's establishing the comprehensive budget management system based on the balanced score card,and applies the system to make a budget attempt.The consideration of non-financial indicators in the new comprehensive budget management system makes the company more comprehensive to perceive the changes brought by the market environment change factors when planning the budget.Through comparison,it can be found that the budget figures in the comprehensive budget based on the balanced score card is more close to the actual numbers.This new system makes the company budget reflect the company's state of development more realistically,thus proving the comprehensive budget system based on the balanced score card is feasible and effective.