Research On P Company Budgeting Optimization

In recent years,the uncertainty of the macroeconomic market environment has increased,the global pandemic,the Sino-US trade friction,the Russia-Ukraine conflict,the sharp fluctuation of bulk material prices,and the potential recession caused by the Fed’s interest rate hike,all of which have posed a severe test to corporate management and continuous operation.Especially for domestic small and medium-sized manufacturing enterprises,it is urgent to adhere to the strategic goals of enterprises scientifically and effectively,adjust short-term planning in a timely manner,maintain prudent financial policies,and resist economic cycles.Effective budget management can improve the forward-looking nature of enterprises,respond to the impact of economic market fluctuations on enterprises in advance,and improve their ability to resist risks.Excellent budget preparation and execution is the key to successful budget management.Therefore,for small and medium-sized production enterprises,how to closely integrate business and finance,fully tap the value of financial data,and improve the timeliness and accuracy of budget preparation is the first problem to be solved to quickly respond to market changes,improve enterprise operation management,and achieve strategic goals.Based on the case of P production enterprises,combined with the popular perspective of industry-finance integration,this paper fully studies the method of comprehensive budgeting.Firstly,the case analysis method is used to analyze the problems in view of the inefficient communication,participation,and low accuracy rate in the current budget preparation,explain the reasons for the existence in detail,and improve them in combination with the industryfinance integration tools.Secondly,in view of the inflexibility of the current financial preparation method and the lack of key production cost budgets,the management concept of activity costing method is used to make the financial preparation budget more comprehensive and sufficient;Then,through the specific analysis of the variance rate of budget preparation,the process of various data compilation is analyzed,and the efficiency and accuracy of the income statement,cash flow statement and non-financial indicators are improved by sorting out and reengineering.Finally,in order to ensure the smooth implementation of the entire budget preparation process,the evaluation mechanism has been improved to ensure that the budget preparation improvement plan can be implemented from the institutional perspective.Through case studies,this paper finds that the current traditional budgeting method of Company P can meet the management needs of enterprises and guide resource allocation.At the same time,however,inefficient communication in the preparation process,a large discrepancy rate,and a lack of reasonable review and evaluation have resulted in budget management not being taken seriously and greatly weakened its role.Formal budget organization and the attention of top management can increase the participation rate of departments and improve the efficiency of budget preparation;In addition,combined with the industry-finance integration tool,the reasonable use of goal setting theory,the unification of the goals of enterprises and individual employees,and the selection of reasonable budgeting methods can effectively help enterprises improve the accuracy of budget preparation;Finally,the monthly rolling budget is a rigid and effective supplement to the annual budget.Improving the efficiency of budgeting can optimize the operational efficiency of the organization,accelerate the speed of decision-making,fully implement the implementation of the strategy,and ultimately improve the performance of the enterprise,hoping to enlighten similar enterprises.