Research On MJ Company’s Comprehensive Budget Management System Based On The Balanced Scorecard

With the rapid development of China’s auto industry,many foreign auto enterprises have entered the Chinese market,thus leading to fierce competition inside the auto industry.Meanwhile,the rising unit price of raw materials and increased labor costs have been putting even greater pressure on the development of auto industry.The competition of traditional manufacture industry begins to shift from cost competition and quality competition to innovation competition and technology competition.As a management method of modern enterprises,budget management serves as an important method of enterprise’s financial management and control.Comprehensive budget management can promote the transformation and development of enterprises,thus improving the core competitiveness of enterprises.Based on related basic theories,this paper takes MJ company as the research object,summarizes the development and shortcomings of its budget management,effectively solves the problems existing in the company’s budget management,and redesign its comprehensive budget management index system based on the principle of balanced scorecard.The author hopes that this research will help with the improvement of the company’s budget management level,and play the role of budget to the best.The core idea of this paper is to introduce the theory of the balanced scorecard into comprehensive budget management,and formulate a new budget management method based on the actual situation of the company’s budget management.The steps are as follows:First of all,the paper analyzed the MJ Company’s objectives and internal and external environment,and set strategic goals for the company.Secondly,related driving factors were transferred into budget indicators while values were added to indicators of different levels.Thirdly,applying the balanced scorecards and making adjustments to various indicators to make the whole budget management system appear more feasible.In order to ensure the successful implementation of the new budget plan,a safeguard mechanism was developed.This paper takes into consideration all the problems that may be encountered in the implementation of the budget plan,and proposes following suggestions:1)The company should strengthen the training and learning of the balanced scorecard,so that employees can gain a deep understanding of the budget management system.2)A budget management organizational structure should be established.3)It is necessary to build a budget management information management platform.From the theory and practice researches we can see that budget management system based on the balanced scorecard is practical,and it can meet the budget management needs of enterprises well.However,enterprises should take into account their actual situation rather than using or imitating other’s experiences while building budget management system.The practical results show that the comprehensive budget management based on balanced scorecard can not only exert its advantages of being complementary and coordinated but also promote the implementation of enterprise’s strategies.