The Research On Financial Budget Of A Company

Total budget management, acting as a new management tool, plays an importantrole in the modern enterprise management control. Also, it is the goal, the controlstandard, the coordinative tool as well as the inspection basis of the enterprise interiorvarious departments. Total budget management consists of investment budget,financing budget and financial budget. As a crucial part of total budget management,financial budget is a general term which reflects the operating results and financialposition of an enterprise in a certain period.A chemical company is a chemical industry leader in its production field, itsindustry characteristics is large-scale investment in production equipment, longpayback period, complicated processes, which gives corporate management greatuncertainty, in order to adjust its strategy according to the changing economicenvironment is particularly important. Based on this, this paper elaborates theresearch achievements on budget management conducted by domestic and foreignscholars, along with the relevant theoretical knowledge, analyzes the effects offinancial budget management, and trying to find a solution.In this paper, we obtained that the budget organization system is not perfect, thebudget method is not reasonable and so on. This paper will introduce Interactivecontrol and the Balanced Scorecard theory to solve the above questions, not onlyovercome the deficiencies that budget index is solely considered and strategy isalways ignored in traditional budget, but also constantly promote the internal buildgood communication and mutual respect for the cultural atmosphere. Finally, in thesetting of financial budget year-end performance evaluation scheme combined withthe Balanced Scorecard score and monthly budget completion times forcomprehensive evaluation and reward. Hoping that through these analyses both thiscompany and its related companies can improve the budget management level as wellas its effects.