Research On The Optimization Of Comprehensive Budget Management Of SY Company

SY company is a comprehensive company engaged in the water treatment industry with more than 20 subsidiaries.Its main businesses includes urban wastewater treatment,sludge treatment and water supply,etc.SY company’s strategic goal is to improve the operational efficiency of existing projects and expand its market share through a variety of investment modes.However,the water treatment industry in which SY company is involved is generally in an operational state of break even and meagre profit.Together with the increasing pressure of competition in the domestic market,SY company urgently needs to achieve its strategic goal through appropriate approaches.As a management mechanism integrating control,incentive and evaluation functions,and by relying on company’s strategic goal,the comprehensive budget management can carry out an overall plan through planning,communicating and coordinating,controlling and supervising,evaluating and encouraging the company’s operational activities,so as to assist the company to achieve long-term development strategy,optimize resource allocation,reasonably control costs and enhance operational efficiency.Based on the company’s strategic objectives,which is very suitable for SY company’s strategic needs.Firstly,this paper focuses on research literature related to the comprehensive budget management at domestic and abroad to summarized and discuss,elaborating the concept of comprehensive budget management.Next,by taking the current status of comprehensive budget management of SY company as the entry point,and by adopting principal-agent theory and balanced scorecard theory,this paper carries out the study on the background,organizational structure,management system,index system,preparation process,execution and control process through case study method and questionnaire survey method.It is found that although SY Company continues to improve the comprehensive budget management system to ensure the smooth implementation of budget management,there are still some unscientific places,such as the existence of imperfect organizational structure is difficult to provide a supporting and guarantee platform for the smooth implementation of comprehensive budget management,the incomplete budget management system results in a lack of effective and guarantee approaches and basis for the implementation of comprehensive budget management,the budget indicator system is insufficient to ensure comprehensive budget management to effectively achieve the strategic objectives,the unreasonable preparation methods are not conducive to the determination of the overall goals,the inadequate implementation control is not conducive to effectively control the company’s daily economic activities,and the incomplete budget assessment and incentive mechanism is not conductive to assess the performance of each budget implementation unit and other issues.And more,this paper analyzes the reasons of these issues through combining with realities.Finally,in terms of the reasons existed in the comprehensive budget management of SY company,this paper optimizes the design of the comprehensive budget management on aspects of organizational structure,management system,indicator system,implementation control and performance evaluation respectively.Based on the above research,this paper concludes that for SY company and other companies in the same industry,comprehensive budget management needs to be prepared by taking the strategic goals as the starting point,with a perfect organizational structure and budget system as a safeguard,and with a comprehensive indicator system to cover all aspects of daily production and operation.And during the preparation and implementation,the budget goals need to be decomposed to various links and positions to achieve full participation.And it needs to supervise and control the implementation situation of budget by means of informatization in a timely and high effective manner,and timely alarm and analyze the budget that gets off from the normal progress,so as to make adjustments to the business strategy.Finally,a perfect assessment of the rewards and punishments mechanism is needed to let the staff play their maximum enthusiastic role in the participation of comprehensive budget management work,and efficiently achieve the company’s strategic goals.