Suggestions On Comprehensive Budget Management For Chinese Enterprises

Take the group company budget management as an example, from the strategic and budgetary control system docking, the budget goal formulation, the budget control and the implementation, as well as the budget appraisal four aspects proposed the suggestion.

In order for the group strategy to be integrated with the budget, we must clarify the following three problems:

First of all, the company strategy must be instructive and operational, rather than a slogan and culture.

Second, the link between strategy and company budgeting must be clear.

It requires the company strategy to deduce the company's competitive strategy and headquarters resource allocation strategy, and at the same time, it has a clear guidance for the subsidiary's annual business plan and budget system.

Guided by the determination of specific budgetary indicators of each subsidiary (using Company Strategic Benchmarking, market analysis, real resources, etc.) to influence the formation of budget indicators, allocate internal capital resources of the company (forming headquarters capital expenditure plans and capital budgets of subsidiaries); determine the budget management boundary of headquarters to subsidiary companies (what kind of subsidiaries enter the budget system, what kind of subsidiaries do not enter the budget system) and budget control focus (clear budget control of subsidiary companies, and plan budgets for key subsidiaries and their key businesses); use benchmarking to evaluate the effectiveness of budget management, and implement effective incentives for operators; budgeting with budgetary roll in strategic period, so that the realization of budgetary goals can be effectively integrated with company strategy. Third, from the perspective of the annual business plan and budget system, it requires that the company strategy and subsidiary competition strategy must meet the following requirements: be able to clarify the budget guidance of headquarters to different subsidiaries, such as the relationship between scale and benefit, and set the budget.

1, benchmarking method

It takes the best company performance (financial and non-financial) as the strategic goal of the company's future development. The task of the company is to find out the gap between the benchmarking enterprises and the strategic planning, and to narrow the gap between them through the annual plan.

Benchmarking is used especially for the determination of annual budgetary objectives of industrial mature enterprises.

2, continuous improvement method

That is, in the determination of the company's strategic objectives, the goal of promoting the future must be to improve the actual performance.

If the market share is 10% in the past, it will increase by 1% every year in the next few years.

The goal of the continuous improvement law is in the past. It is practical and takes account of environmental changes and other factors.

More importantly, the law of continuous improvement is based on the absence of external market benchmarks and internal benchmarks. Although it is arbitrary, it must also take into account the changes in external market environment and changes in competitors' capabilities.

1. Budgeting and Implementation

Besides the need to compile and execute the budget of the Ministry, the budget management department of the headquarters must also be responsible for the budgeting, execution, feedback and assessment of the subordinate enterprises.

In the specific practice, there are three tasks to be done: issue the annual budget management outline, audit the draft budget submitted by the member enterprises, summarize and balance the budget, and make decisions.

2. Budgetary control

At present, there are two popular ways of monitoring: first, cash flow monitoring; two, authorized monitoring and controlling the authorized person.

Cash flow monitoring.

According to the successful experience of some enterprises, the key to budget execution and monitoring is to refine and implement the joint cash flow budget.

Cash flow has strong binding force on various business links and departments.

Settlement and unified management; according to needs, the parent company set up a "two line" system for all holding subsidiaries to prevent cash interception and cash receipts from all units, and cash receipts and payments can control the cash receipts and payments of all enterprises; the subsidiary company is required to establish "cash flow monitoring card" and "cost monitoring card" system, according to the procurement link, payment link, expense collection and financial investment and financing business of the business activities, where the cash flow will be monitored, it will never deviate; it requires the financial departments of the subsidiary company to maintain real-time communication with the production, sales, procurement and supply departments, so as to ensure that the subsidiary companies carry out dynamic tracking and monitoring of the budgets of the departments, and constantly adjust the deviations to ensure the realization of the budgetary goals. To this end, the parent company will establish a capital settlement center or cash management center to implement cash unification for all member enterprises.

Authorized monitoring refers to the approval of the correctness, reasonableness and legality of a financial activity prior to the occurrence of a financial activity and the determination of whether it will be monitored.

It is a kind of pre monitoring, which can stop all wrong, unreasonable and illegal economic behavior before it happens.

The method of authorization management is to specify the authorized items and the limit of using resources through the authorization notice.