Research On Implementing Comprehensive Budget Management In Chinese Enterprises

With the gradual development and improvement of Chinese market economy, enterprises are being faced with much more pressure of living and development than before due to furious competition from home and abroad. Entrepreneur have found that the era of extensive cultivation and decision making based on past experiences has gone away; instead, reforming management system, upgrading internal management level and reinforce competitive edge have become the priorities that has to be taken in the development of an enterprise. In western countries, comprehensive budget management is a good tool and evidence used to measure management control and to evaluate the performance of an enterprise. In China, because market economy was introduced later, knowledge of budget management still stays at the stage of financial budget rather than reaching the stage of combining the enterprise's budget management and the enterprise's control management. In the implementation of comprehensive budget by some enterprises, some difficult problems in the process of working out and putting into effect the comprehensive budget are worth studying and searching.A survey on the current status and effect of budget management by the accounting thesis team of Nanjing University released that enterprises have generally worked out production budget and expenses budget, but have not taken much into consideration of the work out of predicted cash flow statement. Enterprises budget mainly focuses on financial budget, little is taken into consideration of investment budget and funding budget, comprehensive budget management system is not established. The reasons of not establishing comprehensive budget management system are attributed to the lack of knowledge of the significance of comprehensive budget management, the procedures and methods of working out the budget management.The first chapter of this thesis is mainly to introduce the concepts and characteristics of comprehensive budget management and to elaborate on the significance of comprehensive budget management. And then, this thesis will lucubrate on the theory of comprehensive budget management.The second chapter will study the application of comprehensive budget management in China's enterprises on the basis of the questionnaire results by Wei Dehong in 2004, the survey of the current status of budget management by Nanjing University and the investigation by SinoPec and its branches together with relevant information collected by the Author of this thesis. Following that, this thesis will discuss the problems rooted in the establishment and implementation of comprehensive budget management.The third chapter and the fourth chapter mainly discuss the methods to try to give the countermeasure to the problems including how to establish comprehensive budget management information system by introducing a case of a mining enterprise where comprehensive budget management information system occurs.