Analysis Of The Present Situation And Causes Of Financial Budget Management In Small And Medium Sized Enterprises

First, the present situation of financial budget management of small and medium-sized enterprises and the reason analysis.

(1) blind areas and erroneous zones in the management of financial budgets - backward concepts, inadequate understanding and unreasonable positioning.

Based on traditional concepts, the financial budget is regarded as a copy of the financial revenue and expenditure plan and a means to regulate managers' intentions.

And the guarantee system that does not take financial budget management as the realization of enterprise strategy is the blind area of many small and medium enterprises, because correct enterprise strategy is the premise of effective implementation of financial budget management.

Because some enterprises think that the financial budget is a matter of a financial department, budgeting is only to meet the requirements of the higher authorities or get the approval of the relevant units to the management level of the enterprise, so that SMEs can not form a sound financial budget system, the result can only be budgeted for the budget.

(two) the compilation of the financial budget is top-down, with incomplete contents and unclear objectives.

As the budget is extended and developed on the basis of the budget of the financial revenue and expenditure, and the understanding of the financial budget management is not in place and the position is unreasonable, the annual financial budgeting of the enterprise is only carried out among the top management and regarded as a pure financial behavior. The budget is closed by the finance department.

The lack of close coordination between departments is not related to the majority of workers.

Budgeting is very subjective and blind. It can not start from the actual situation and characteristics of the enterprise, and can not formulate a budget plan to achieve optimal allocation of enterprise resources.

Because this top-down budget is directly focused on the various departments, it only focuses on the formulation of the overall objectives, and lacks the detailed decomposition of the target content and time and the clear definition of financial indicators, so that the grass-roots units do not have specific standards to follow, making the financial budgets flow in form.

(three) the implementation of the financial budget, the core content and the insufficient executive capacity, is not well controlled.

The key to financial budget management is execution and control.

Because some small and medium-sized enterprises fail to divide and define the budgetary indicators clearly, the lack of pertinence and effectiveness of the budget targets makes the determination of the responsibility units of the financial budget management unreasonable. Departments often cause wrangling phenomena due to the unclear responsibilities and unclear administrative powers, which makes the hierarchical budgeting failed to be effectively implemented in the enterprises.

Finance

Essence is a kind of

There is always a certain gap between the actual work and the actual work. Only in accordance with the feedback in the budget execution process can we timely guide the production and operation of enterprises, timely identify problems and plug loopholes so as to ensure the realization of budgetary goals. However, small and medium-sized enterprises do not establish strict budgetary management organizations, strengthen the tracking management and effective supervision of budget execution, pay no attention to the division and checks and balances of powers, and override the functions of budget control, resulting in the lack of effective control over the daily implementation of budgetary indicators.

(four)

Examination and evaluation - information feedback, assessment is unreasonable.

Inaccurate evaluation

The strict implementation and effective control of financial budgets largely depend on whether there is a practicable evaluation system.

The rationality of assessment is based on the pertinence and effectiveness of various financial budgetary indicators.

The pertinence and effectiveness are not strong enough to be the crux of the reasonable financial budget management for small and medium-sized enterprises.

Because the financial budget index can not be divided into details, the result of the budget execution is often difficult to define the controllable factors and uncontrollable factors of the responsible units and divide them according to their responsibilities, rights and profits, resulting in the mutual shirking of responsibilities between some responsible departments, and the lack of rewards and punishments.

Because the financial budget indicators can not be clearly defined and the non-financial indicators are not sufficiently valued, the financial budgets are mostly calculated on the basis of the accounting gains that have been achieved during a certain period. The results of the implementation of the financial budget often obliterate the subjective effort of the responsible person, which can easily lead to the short term actions of the decision makers.

Because of the irrationality of the assessment, the accuracy of the evaluation results will inevitably lead to the timeliness of the financial budget management.

Two, strengthen the financial budget management of small and medium-sized enterprises.

(1) strengthen organizational leadership and set up a new concept of financial budget management.

1, strengthen the organization and leadership of enterprise budget work and consolidate the basic work of financial budget management.

(1) business leaders, especially leaders, should attach importance to and pay attention to financial budget management. They should regard financial budget management as the central link of enterprises, establish and improve budgetary management organizations at all levels, and form a strong organizational guarantee.

(2) we should strengthen the training of budgetary knowledge of employees, strengthen the sense of financial budgets of each employee, and enhance their enthusiasm and sense of responsibility in budgetary management.

(3) specific measures and measures for budget management.

The whole budget management process of enterprises should be institutionalized, programmed and standardized.

2, we set up a new concept of "budget management based on enterprise strategy", making daily budget management the cornerstone for SMEs to achieve long-term development strategy.

Before implementing budget management, small and medium-sized enterprises should seriously conduct market research and analysis of enterprise resources, clarify their long-term development goals, and compile budgets for each period based on this, so as to link up the budgets of different periods of small and medium-sized enterprises and avoid blindness of budget work.

We should strengthen the foresight of our budget work.

3, we should establish a new concept of "zero budgeting with the market" to make the budget indicators stand the test of the market.

The financial budget of small and medium-sized enterprises is based on sales budgets, and sales depend on the market. Therefore, we must have a clear idea of the sales situation before making financial budgets, and determine the estimated sales accordingly.

At the same time, in order to cope with the market changes, the budgetary indicators of small and medium-sized enterprises should have some flexibility, so as to make room for the smooth development of budget work.

Reduce the risk of excessive budget rigidity to budget management.

(two) clarify objectives, refine budgets, and prepare scientific financial budgets.

1, we should divide the budget into specific objectives.

The budget objective is the concrete embodiment of the enterprise strategic target. The modern enterprise management level is divided into three levels, namely, the senior management level, the business department and the strategic management unit. These three levels have different responsibilities and jobs in the management control system.

Therefore, the determination of budgetary objectives not only reflects the strategy of enterprises, but also has operational budget indicators in practice, and is compatible with management level, which is conducive to better management of enterprises.

2 fully express and refine the requirements of budget system for decision objectives.

All matters, business and contents that affect the realization of financial budgetary objectives should be mainly reflected in currency and supplemented by other measurement forms.

(1) to consider as far as possible various factors, such as market, income, policy, relevant laws, cost and other future changes, and avoid the incompleteness of the budget resulting from incomplete consideration, the budget can not be completed.

(2) extensive market research and advanced analytical methods and analytical tools should be used to carry out scientific prediction and budgeting.

(3) we should pay attention to the division of budgets and rationalize the linkage and interrelationship between various indicators in the budget so as to ensure the coordination and coordination among departments and the systematicness and integrity of the budget system.

(three) strengthen the execution and control of financial budget management through classification and refinement.

In the process of budget implementation, small and medium-sized enterprises should pay attention to the implementation of budgetary responsibilities, and decompose the budgetary objectives, so as to make the target of responsibility units clear.

1, establish a two level budget or even a three level budget, and correctly divide the centralized management departments of the budget, organize reengineering and process reengineering for small and medium-sized enterprises.

2, when setting up the organizational responsibility goals and rewards and punishments standards of all levels and links, we must have a principled target framework to indicate the basic responsibilities objectives and basic requirements that must be followed.

3, make full use of the feedback information in the implementation process of the budget, understand the actual effect of the budget execution in time, and discover the existing problems, the links and causes of the problems, then analyze and study the different links and different reasons, and take timely control measures.

(four) further strengthen budgetary evaluation, assessment and incentive mechanism.

1 to design reasonable indicators and to adopt appropriate evaluation methods.

Judging from the design of evaluation index.

It is not only financial factors but also non-financial factors that affect the strategy and goals of small and medium-sized enterprises.

Therefore, when setting up and selecting the evaluation index, we should consider the indicators that can reflect the strategy and goal of small and medium-sized enterprises to achieve the influencing factors, including financial indicators and non-financial indicators.

Judging from the evaluation method, the evaluation method should not only apply quantitative evaluation, but also apply qualitative evaluation.

Moreover, dynamic evaluation should be applied; not only horizontal analysis should be adopted, but also structural analysis, ratio analysis and factor analysis should be adopted.

2, establish incentive mechanism and information feedback mechanism.

The incentive mechanism corresponding to the budget evaluation results should not only reflect the enterprise value created by the employees, but also emphasize the long-term performance rather than the short-term benefits, and also consider the cultural background of the enterprise and get the approval of all the employees.

We should also pay attention to the constraint problem in motivation.

Establishing and improving effective information feedback mechanism is the premise for effective incentive mechanism and evaluation mechanism to operate normally.

3, according to the implementation results, performance appraisal is carried out.

The implementation of the financial budget largely depends on whether there is a practical and strict system of rewards and penalties.

Therefore, enterprises should establish a fair, reasonable and effective system of rewards and punishments according to the budgetary responsibility objectives of various responsible units and responsible persons, and form a strict evaluation mechanism to link the budget execution with the immediate interests of the responsible units and the responsible persons, so as to form a community with the responsibility, power and profit of the enterprises.

Practice has proved that strict evaluation mechanism is one of the important means to achieve effective budget objectives.

Strengthening financial budget management and improving enterprise resilience is an inevitable choice for small and medium-sized enterprises to grow and expand.

In order to ensure continuous and healthy development of small and medium-sized enterprises, we must make good use of budget and management.