Research On The Improvement Of Comprehensive Budget Management In T Company

As a management tool,the comprehensive budget management is a scientific and effective management control methods which has been examined by many enterprises.It integrates the optimization of resources allocation,administration improvement,risk control and other functions in one,integrating a number of key points within an organization and controlling in a relatively unified system.Thus it has been widely accepted in the academic and practical circles.The object of this article is located in a province which in the central part of China.This company produced LED lamps and lanterns and they have export and domestic sales.T company have been listed on the New OTC Market with good prospects.In order to achieve the company's strategic goals and maximize the shareholders' equity,the company introduced a budget management.However,due to the company is in a transitional period,it failed to integrate the company's strategy and budget management,and comprehensive budget management hasn't finished.We conducted field research on T company and analyzed the situation of T company's budget management and found that the company's overall budget awareness was weak and the budget management was ineffective.The existing performance evaluation system failed to motivate employees to complete budget goals.T company urgently need to improve the overall budget management system and closely link budget management with strategic planning.This article designs a strategically oriented key performance indicator system from the four aspects of the Balanced Scorecard's finances,customers,internal processes,learning and growth,and connects the budget indicator system with the corporate strategy.In order to ensure the achievement of the budget target system,a corresponding action plan has been formulated,and its indicators have been assigned to various functional departments so that the departmental objectives are highly consistent with the strategic objectives,thereby ensuring the further implementation of the company's strategy.Then on the basis of this,combined with the situation and problems of budget management,starting from the organizational structure,budgeting,implementation control,and budget evaluation,the author proposed some methods.Such as adding a Budget Management Committee under the of Directors,introducing a "rolling budget" for budgeting,increasing the preparation of"strategic budgets",optimizing implementation control processes,and establishing performance evaluation mechanisms,etc.All this methods are made for completing T company's comprehensive budget management,and for it can better serve T company's development strategy.This paper tried to discuss the application of the comprehensive budget management in LED lighting industry,hoping to improve the management of the T Company,providing reference for the practice of the comprehensive budget management within the other LED lighting enterprises.It is also a supplementary to the practice of comprehensive budget management in different industries.