Financial Management: How To Do Budget Management

In 1920s, P, general electric appliance, DuPont and General Motors took the lead in adopting the comprehensive budget management mode.

This management mode quickly became the standard operation procedure of the large industrial and commercial enterprises in the United States.

In the United States, more than 90% of enterprises are required to implement budget management; some European countries even require 100% of enterprises to make budgets.

Over the past 10 years, China's large and medium-sized enterprises have gradually realized the value of comprehensive budget management.

According to incomplete statistics, most of the 15 enterprises that have entered the < a href= "//www.sjfzxm.com/news/index_p.asp > the world top 500 < /a > have adopted the comprehensive budget management system, and the state-owned large and medium-sized enterprises have implemented nearly 1/3 of comprehensive budget management.

It can be seen that budget management has become an indispensable part of modern enterprise management.

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< p > < strong > first, improve the organizational structure of the budget.

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＜p＞　　企业最高管理层应当有一个预算管理委员会，包括最高党政领导、分管销售、生产、财务等方面的副总和总会计师等高级管理人员，来行使通过及颁布预算、审查和协调各部门预算、监督预算执行、考评预算执行效果等权力，并对预算负全面责任;预算管理委员会之下是专门负责预算编制的部门，分别负责生产、投资、人力资源、营销等各个方面预算的分析、审核和综合平衡，并最终形成企业总预算草案，该部门的负责人对总预算承担责任;各所属单位负责本单位的各类预算编制、上报，接受集团公司的检查考核，并对本单位预算的正确性承担责任，同时还要加强对企业员工＜a href="//www.sjfzxm.com/news/index_h.asp"＞预算＜/a＞知识的培训，强化每个员工的预算意识，提高他们参与预算管理的积极性和责任感。

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< p > < strong > secondly, improve the budgeting method.

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< p > even for the same enterprise's same budget, it can be started from cost control separately, with the target profit as the starting point, the cash flow as the starting point, and the sales volume as the guide.

Depending on the strategic goal or emphasis of the decision level, choosing different starting points, or comparing the budgetary angles with multiple starting points, we can truly serve as a reference for decision making and a plan for enterprise action.

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< p > the scientific nature of the budget comes from real historical data, objective and rational expectations for the future, scientific and advanced compilation methods and so on.

Therefore, enterprises must adopt a variety of compiling methods for different business contents and characteristics.

Based on the classification of profit centers, Huarun implements the budget management in an all-round way, and puts the business objectives into every profit center, and decomposes them into layers, and ultimately implements the operation of each responsible person every month. This not only enables managers to have a long-term and thorough understanding of their business, but also finds out problems from the degree of deviating from budgets and promptly solves them.

The budgetary method is bottom-up, from top to bottom, constantly repeating and correcting, and finally aggregated to form a comprehensive budget report of the whole group.

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< p > < strong > again, pay attention to the effective implementation of the budget.

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< p > the financial budget is issued once approved, which means that the budget execution units must be conscientiously organized and implemented, and the financial budgetary indicators should be decomposed.

After the confirmation of the budget plan, there should be "a href=" //www.sjfzxm.com/business/ "> legal effect < /a > within the enterprise, which must be strictly implemented and must not be adjusted at will.

It is necessary to set up strict procedures for authorization and approval, clarify the scope and scope of the approval and supervision of enterprises, and undertake the economic responsibility of controlling budgets.

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< p > if there is a real event in actual work that exceeds the annual budget and the proportion of the quarterly budget difference, the budget adjustment should be carried out.

Since the budget involves all kinds of interests, the budgetary addition should also be controlled in principle, so as to prevent the phenomenon of arbitrary additional budgeting.

From the procedural perspective, the adjustment budget should be submitted by the Department in writing, and be declared step by step according to the procedure, and it will be implemented after deliberation and approval by relevant conferences.

Huarun requires every profit center to compile management accounting statements according to the prescribed format and contents, which is formulated and perfected by the group finance department.

Management reports are reported once a month, including the turnover, assets, liabilities and cash flow of each profit center, and a brief review of the company is made to combine the rigid implementation of the budget with the need for adjustment in the implementation process.

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< p > < strong > finally, establish a budget evaluation system.

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< p > budgeting is reasonable and beautiful. It can not get the support and implementation of subordinate units.

In order to achieve the same goal of the subordinate units and the company's overall goals, it is necessary to establish an interest relationship. Only by setting the relevant assessment indicators and rewards and punishments in the evaluation system can we ensure the smooth implementation of the budget.

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