Research On Budget Management Of Enterprise A Based On Economic Value Added

As an important tool in the daily operation and management of an enterprise,comprehensive budget management integrates many functions such as planning,coordination and incentive,and is an important tool in the operation and management of an enterprise.With the continuous development of enterprises and market competition intensifying,the enhancement enterprise's ability to create value is becoming more and more important,and guided by profit and other financial indicators of the traditional budget management mode gradually appear disjointed,budget targets and value creation is short-sighted,such problems as lack of capital cost consciousness,therefore,the traditional budget is hard to meet the demand of the enterprise long-term development and long-term value creation.In this case,how to strengthen the value orientation in the budget,how to control and adjust the activities of the enterprise through budget management to achieve the goal of value creation has become an urgent problem to be solved.EVA concept focuses on the value creation of the company.Compared with the traditional budget index,it can more truly reflect the current operating effect and the level of value creation ability of the enterprise.Combining the concept of EVA and traditional budget management,with the guidance of the added value of economic budget target,budget establishment and revision of budget implementation and evaluation,help to promote the rational allocation of corporate resources,make the enterprise budget management work can better serve the enterprise value creation and value growth of demand.Taking company A in the food manufacturing industry as an example,this paper optimizes the original budget management by introducing EVA into the company's budget system,aiming at the deficiencies of the company in traditional budget management.First,after reading relevant domestic and foreign literature,this paper explains and analyzes the theories of comprehensive budget management,EVA and eva-based budget management,which provides theoretical support for the case analysis and research.Secondly,through field research,the author made an understanding of the current situation of A's traditional budget management,and found that there were some problems in company A's budget management,such as the lack of value guidance for budget objectives,the neglect of equity capital cost,shortsighted budgeting,and slack budget execution.On this basis,this paper,guided by the concept of EVA,constructs the budget management framework of company A based on EVA,elaborates the management process of EVA budget and applies it in combination with the situation of company A.It mainly includes the following aspects :(1)determine EVA target value based on value creation;(2)budget was prepared around the drivers of EVA value,and the key drivers of EVA were identified through sensitivity analysis to guide the budget revision;(3)to help achieve EVA goals by focusing on key EVA projects and improving the budget gap analysis mechanism;(4)in order to improve the efficiency and effect of budget execution,an eva-oriented budget evaluation method was established and the traditional financial evaluation index was improved.Finally,this paper analyzes the problems that should be paid attention to when introducing EVA into the budget management of A company,and puts forward the guarantee measures in the aspects of corporate culture environment,talents and technical guarantee.By EVA through the budget of A company,budget preparation,implementation,evaluation,and other links,the traditional budget management of A company is optimized,make it more can meet the demand of the development of A company,at the same time,can enhance the level of budget management for other similar private company,promote the enterprise value creation.