Research On Comprehensive Budget Management Of A Company

The competition of economic development is becoming more and more intensive,thus,the government has issued policies to make the state-owned enterprises develop better.Deepening the reform of SOE;innovating the system and mechanism;accelerating the establishment of modern enterprise system,the state-owned enterprises,especially for big and medium sized ones,which has management problems due to history and whose management level doesn't match with high speed economic development of the market,are facing unprecedented opportunities and challenges.State owned defense industry enterprises,which is in a special industry,should strengthen the marketization level,grad good opportunities from home and abroad,improve management level,so that to realize high speed development.Comprehensive budget management,using values and amounts to reflect plans and objectives of enterprises,is an effective management tool.Through budget making,managers can detail enterprise objectives and plans into production and management processes.Through utilization of budget,managers can plan the human resource,finance,properties for entire project,so that to ensure complete control of management and production activities for each department.Through variance budget management analysis,managers can readjust business plans and objectives appropriately,examination of the budget will also provide standard of enterprise performance appraisal.Thus,comprehensive budget management is a huge system engineering,which related to enterprise strategic plan,inner control and performance appraisal.it is one of the most effective management tool of enterprise inner management,Comprehensive budget management has been tested by big sized American industry enterprises as a good management tool last century since it helped many businesses to improve their management level,it become the standard working process of enterprises,it plays a key role in enterprise inner control.Put comprehensive budget management into effect is an experience of successful enterprises from developed countries,it plays an important role in establishing modern enterprise system,improving management level of enterprises and enhancing the competitiveness of enterprises.This thesis is about the comprehensive budget management practice in the state-owned military enterprise business A,including 5 parts:introduction,overview on the comprehensive budget management,case analysis on the business A,and conclusions.Through the case analysis,we attempt to illustrate some problems of comprehensive budget management in practice.As the BSC strategy objectives are not scientific,leading to incomplete budget control;lack of standard budgeting leads to budgetary slack;too many off budget approval during implementation of the budget,significant differences in the payment amount for the budget,which causes large capital budget variance,bad budget adjustment mechanism resulting in budget execution control are not in place;Index issued by the Administrative Department of assessment results are not serious,financial assessment results are not totally rely on accounting data,self-assessment of index management department occupies a large proportion,business unit make costs across accounting periods so that to complete business objectives,thus,lead to comprehensive evaluation of budget lack of seriousness;Lack of information support for comprehensive budget management,and so on.According to the above problem,we propose appropriate solutions to promote the development of comprehensive budget management in A company's business,and also let budget management to play its desired effect,which is to improve the quality and efficiency of A company's business.It is significant not only for A company,but also for State-owned enterprises in the industry.