Comprehensive Budget Management In The Modern Enterprise

The budget management is regarded as one of the most important management tools to firms. It has become a necessity for most enterprises to survive in markets full of fierce competition. It plays an increasingly important role of improving company's internal management and cultivating its core competence. Comprehensive budget management also plays as a solid base for company to achieve its objectives by smartly allocating resources as per the strategies.The writer has been working for Cadbury China, a wholly owned company of Cadbury Schweppes Group, for more than nine years. He was ever involved into the process of comprehensive budget development. Based on the theoretical analysis of budget management, the writer takes Cadbury China as an example to specifically introduce the budget pattern that Cadbury China adopted and the whole process of how the company developing budget. He also raises constructive recommendations for improvement of its budget system after analyzing existing budget model.Ministry of Finance imposed guidance in terms of financial budget in April 2002 to roll out budget management in all enterprises. Five years passed, although more and more companies began to carry out budget management, however only a few companies have enjoyed fruits from it by setting up an effect budget management system. Most of companies have sum of issues to be addressed regarding budget, especially in the process of developing budget and using it as a measurer for performance appraisal. I sincerely hope this article can be used as reference for those companies in the exploration process of improving their budget management system.