Research On Closed Circle Project Budget System For Power Supply Companies

Budget management is a key tool for modern enterprises to fulfill strategic target,optimize resource allocation,and improve development quality and creativity for value increase.Since power supply companies are capital oriented,budget management is incredibly important as the foundation to improve development quality and to increase revenue.It is very crucial for financial departments in power supply companies to keep dynamic monitor on project key milestones,to clarify PIC with all due responsibilities,to have better management integration,and to have a closed circle of budget management.With in-depth analysis on the current status,this article mainly focus on constructing a closed circle budget management system.Importance of the budget management is emphasized through analysis on the current status and elaboration through all the factors which affect the system.Four Mechanism of Reservation,Planning,Implementation and Assessment are encouraged to be set up to secure a closed capital cycle.Investment simulation is recommended as a good method to trace the entire financial management system.The outcome of implementation of creativity both theoretically and practically is concluded at the end.Taking Weifang Power Supply as an example,this article research on project budget using the operational cost analysis method and the factor analysis method.A lot of work has been done to dive in deep to understand the concept of closed circle management better and to perform better.The target is to change the open status of the budget management system into a closed circle through practice,thus to have better reservation and more scientific arrangement,to improve on value added creativity,to better allocate resources,to integrate finance and operation and to improve on risk control.