Research On Optimization Of Y Enterprise’s Comprehensive Budget Management Based On EVA

Comprehensive budget management is an important management tool for enterprises to use in operation and management.It is one of the few tools that can integrate the key issues of management organization together.With the change of economic environment,enterprises realize that they must pay attention to their long-term interests and value creation in order to improve their competitiveness.The traditional budget management method can no longer meet the needs of the present value management.How to strengthen the value orientation of the comprehensive budget management,the value management idea with EVA as the core is integrated into the comprehensive budget management process,and the budget preparation is guided by the value.It is an urgent task to implement control,check every link of incentive,and help enterprises to improve the level of value creation.By introducing EVA(Economic value added),a measure of enterprise value creation,into the comprehensive budget,we can take targeted measures to drive value growth by breaking down the EVA value drivers.According to the influence degree of value increment,the selected input capital is helpful to optimize the structure of resource allocation,alleviate the conflict of interest between shareholders and management,and realize the goal of enterprise value creation.Aiming at the shortcomings of current budget management in Y enterprise,this paper applies EVA to overall budget management and optimizes budget management in Y enterprise.First of all,this paper expounds the theoretical basis of comprehensive budget management and EVA,analyzes the feasibility of introducing EVA to comprehensive budget management,and provides theoretical support for the later.Then,the case of the Y enterprise is introduced.In the field investigation,it is found that the short-term effect of the budget target in the Y enterprise is obvious,the long-term value creation of the enterprise is ignored,the construction of the budget organization is not perfect,the budget management is loose,the budget implementation is not sufficient,The budget assessment and the incentive mechanism are not related to the value creation.In order to solve the above problems,we design and apply the EVA value-oriented comprehensive budget management system for Y enterprises,including the following aspects:(1)taking value creation as the goal of budget preparation;(2)on the basis of the original organizational structure of Y enterprise,under the budget execution department,the value-driven divisionis divided into various EVA responsibility centers,and the budget supervision committee is added to implement and evaluate the budget;(3)the budget management index framework based on EVA is designed,and the EVA driver and calculation method are decomposed;(4)according to the operational activities,the budget preparation is divided into the target budget of EVA,the operational budgets,and the finance.Budget,comprehensive formation of EVA budget;(5)budget preparation from four aspects to strengthen the implementation and control of the budget;(6)value creation as the standard of measurement,as a budget management compensation system and performance appraisal indicators.Finally,the introduction of EVA to the comprehensive budget management of several safeguard measures.From establishing the EVA-oriented budget management concept,clarifying the EVA promotion path,implementing the budget target attribution department,formulating the incentive mechanism to adapt to the EVA,actively promoting the budget management information,and so on,all-round,and so on.Optimizing and perfecting the budget management of Y enterprise through the whole process is of practical significance to deepen the concept of EVA value management and promote the ability of value creation in Y enterprise,and also has certain reference value to other similar enterprises.