Research On Comprehensive Budget Management Of L Company Based On Balance Scorecard

A key factor for an enterprise to gain a foothold in the market is doing a good job of comprehensive budget management.Nowadays,comprehensive budget management has been widely applied in enterprise management,which not only improves the operational efficiency of enterprises,but also can better allocate the resources of enterprises and make the management mode of enterprises to be more scientific and reasonable.However,with the incessant development of the market economy,the market competition is more intense,which gradually exposes the shortcomings of traditional budget management mode with only planning and adjusting the financial status of enterprises in the form of currency and quantity.At present,the traditional budget management mode which applied by most enterprises can no longer provide a guarantee for the long-term and stable development of enterprises.The simple consideration and emphasis on financial indicators do limit the enterprises' evaluation range and make it be difficult to cope with the complex and changeable market environment.This forces enterprises to make corresponding adjustments or changes to the comprehensive budget management in order to adapt to the rapid changing market environment and find a more suitable development direction for the strategic goals of enterprises.Currently there has two main mainstream thoughts of comprehensive budget management improvement,the first one is to combine the EVA theory with the comprehensive budget management theory,the second one is to make combination of the balanced scorecard and comprehensive budget management.The second method of combination is applied more widely,and have gained a lot of praise through the application effect of most enterprises.Taking L company as the research object,this paper combines the balanced scorecard and comprehensive budget management to resolve the management problems and development bottlenecks in the current implementation of budget management of L company.To make up and improve exposed problems in the original budget management with the development the business activities,and eventually to explore a set of comprehensive budget management system which is suitable for the development of L company.With combination of domestic and abroad research status and application of comprehensive budget management and balanced scorecard,on basis of full investigation and research,this paper analyzes the Kaplan budget management model,the improved Kaplan budget management model,and the two management tools(balanced scorecard and key performance indicators)integrated with budget management.Combining with the actual situation of L company,the study found that under the traditional comprehensive budget management mode,L company has some problems,such as lack of strategic orientation in budgeting,deficient attention to non-financial indicators,and incomplete comprehensive budget management system.In view of the many problems existing in the current budget management mode of L company,by bringing in the balanced scorecard management tool and combining it with the improved budget management mode,a comprehensive budget management system based on the balanced scorecard is constructed for L company.At first conduct a SWOT analysis of L company and determine the strategic objectives of L company.Then utilizing the four dimensions of balanced scorecard to decompose the strategic objectives step by step;Refining the budget indicators for each subsidiary company and functional departments,and implement to each staff;Optimizing the original comprehensive budget management system with adding some necessary budget reports and attaching importance to non-financial indicators while emphasizing the financial indicators;Upgrading the original budgetary technique,in order to achieve the control and supervision function of budget management on the implementation of objectives.Finally,to improve the company's motivation to achieve the budget target,and cooperate with implementation of comprehensive budget management,assessing and evaluating the budget implementation results and paired with performance evaluation and reward or punishment system.In order to ensure the better implementation of the comprehensive budget management based on the balance scorecard,propose six safeguard measures for the comprehensive budget management of L company.