Research On EVA-based Total Budget Management

Overall budget management becomes an important part of enterprise internal control and management.Usually,financial indicators such as profit income are used in enterprise budget,which is of great significance in company management,supervision and internal control.The development of the world economy is increasingly linked,the business competition between enterprises is becoming more and more fierce,the traditional budget management model which regards profit maximization as the ultimate goal has been eliminated.Its focus on the lack of time and lack of strategic drawbacks gradually emerged,leading to slow pace of enterprise development.Based on this,it is urgent to develop a new budget management model,and some researchers look to EVA value management.Compared with the traditional budget index,the economic added value of EVA is based on shareholder value added.Combining EVA with budget management can better reflect the creation and profitability of corporate value,promote the realization of long-term strategic objectives and significantly improve management efficiency.EVA application in foreign countries has been in the mature stage,Because of the short growth period in our country,so still actively explore.For the use of EVA in enterprise budgeting,performance appraisal,strategic objectives planning and other aspects still need to be deeply studied.By combing the related concepts of EVA and total budget management,this paper proves that the combination of the two has complementary advantages.From the four angles of value creation ability,principal-agent relationship,enterprise resource allocation and adaptability to budget environment change,the introduction of economic added value is perfect to the overall budget management system,which proves the feasibility of its implementation.With the actual case of A enterprise budget management,this paper make a detailed analysis of its current operation in the company within the company,solves the problems exposed in this process,and rebuilds the overall budget management system based on EVA.Focus on EVA preparation The planning of calculation objectives,the improvement of budget preparation and the overall budget management system should also focus on the establishment of independent supervision departments,the strengthening of budget implementation process control and the ultimate assessment,etc.The design company A the overall budget management based on EVA and gives solutions,which will help A enterprises to better implement the overall budget management.By case study,the feasibility and effectiveness of EVA oriented comprehensive budget management are demonstrated,which provides reference for other enterprises and helps to better meet the needs of modern enterprise development.