The Research On Theory And Practice Of Comprehensive Budget Management

The Research on Theory and Practice of Comprehensive Budget Management――Fawer Company As ExampleThe comprehensive budget management is the one of most effective method of internal control of enterprise,it is to make clear the goal of enterprise, coordinate the relation between various departments, control daily activity, appraise working achievement etc. its vital role is regarded as, "the method may lead the resources of enterprise to obtain best production and gain more profit". In our country most of the entreprises have realized the importance of scientific budget management. More and more entreprises have practised budget management and take it as the tool for mornitoring management and performance evaluation. Compared with comprehensive budget management in mature ecomomic body,our entreprise have practised budget management for a short time and have little experiences ,and Chinese entrprise are in stage of development no matter in theroy or in practice, they face inevitablly many problems and defects. Although our country has carried out the many enterprises of the budget management, it has not formed one set of the complete theory of budget management and the consummate budget management system. The research and the practice of budget management still occupies unceasingly explores. This text falls into five parts ,the first part of it start with the introduction of connotation and development of comprehensive budget management, discussing the oversea's entreprise's budget management theory and its pratice in reality as well as the process of its application and development in our country. The second part explain the function and limitation of comprehensive budget management ,and analyze the reason and theory basis of implementing it in details. The third part summarize the issues encountered in implementing comprehensive budget management in our entreprise on the basis of looking up lots of documents. Given the existing problems the fourth part analyze the reason why the comprehensive budget management fail to implement effectively and put forward the solutions and suggestions in details. The last part taking fawer company as an example introduce the basic background of fawer and its content of comprehensive budget management, analyze and explain the operating activities of budget practised in fawer. Fawer company as a large group of enterprises, own 30 subsidary companies which located all over the country, it have a large scope of businesses involving a extended span of managing area.After several years of budget managerment practice it now have form a management procesure surrounding the budget management. This text analyze and study the practice of fawer company, put forward the main five solutions to perfect comprehensive budget management system.First : make the annual budget serrounding the strategy target and long term planning.An entreprise shoud clarify its own strategy target and implement its budget surrounding it operation strategy. It should build up its own characteristic comprehensive management model and meet the demand of the entreprise's development, emphasize the strategy purpose in different phase and different term to solve the problem .second: clarify the duty and implement the budget management as a integrity. Based on the characters of integrity and general ,implementing the comprehensive budget management must build upon the following conditions :the differents departements must communicate and cooperate well and smoothly and know the content of budget and its responsibility .Clarify the duty in different departments such as plan fianace and business .Third: strengthen the basic work of comprehensive budget management , improve the management level. Healthy and perfect basic information of budget will play a good fundation for planning scientific and reasonable comprehensive budgetVia information modernization in computer network, we gradually realize to share information on comprehensive target management database platform. So we can deliver the management data and receive dynamic feedback to moniter in time. This is to ensure the timelineness accuracy and integrity. Mastering the sciemtific formulating method, rejusting the budget reasonably to ensure feasibility of scientific budget .Build up and perfect the internal management regulations to insure the implement of budget .fourth: perfect the management method and meaure. Enhance the quality and benefit of budget management. Advocate the lever management, build up budget objective model ,perfect standard cost calculation system ,build up a machnism that can self-assessment and improve constantly so as to realize the budget management idea and management regulation. so as to deepen the comprehensive management .Optimize the budget formulation method and communication mechanism, improve the accuracy of budget .build up the early-warning machnism of budget management, realize the early–warning funtion different matters of within budget, extra budget, beyond budget and other abnormal matters. This is to insure the timeliness fleasibility and key point highlight. Construct and develop a excellent entreprise culture, promote common entreprise value thought above personal value thought.. FIfth: perfect the comprehensive budget management performance evaluation system. push budget management to a new levelThe entreprise should put the procedures and results of budget into the enterprise performance evaluation system. At the end of operating year ,evaluate the actual performance results through a reasonable procedure., embody the objective and fair, reward the good and punish the bad. So the budget can play the role of motivation and constrant. In a word, the entreprise will encounter some problems and difficulties, the comprehensive budget management must be implement with no doubt. The company should readjust and perfect its budget management system constantly in its practice.