The Budget Management Research Of Vantasia (VT)

The budget is a systematic management tool, by pre-established and the rationalallocation of financial, material and human resources to help companies achieve the strategicobjectives. The purpose of overall budget is to achieve the target profit, it starts with the salesforecast and predicts the production cost and the cash receipts and payments, prepares theexpected profit and loss account, the expected cash flow statement and projected balancesheet to reflect the corporate financial position and operating results in future periods. Theoverall budget includes the operational budget, investment budget, capital budget, profitbudget, wage expenditure budget and administrative expenses budget etc integrated budget.From the initial planning, coordination, development to both control, motivation, evaluation,and many other functions in an integrated management tools and implementing the businessstrategy, the overall budget management increasingly play a central role in the internal control.As well-known management expert David Olivier said the overall budget management is oneof the a few management control methods which can put companies all the key issuesintegration into a system.Guarantee company as a new financial industry, primarily in order to alleviate and solvethe problems of financing difficulties of small and medium-sized enterprises and individuals.Guarantee companies are growing very fast in recent years and the scale of the guaranteegradually expands and draws the government and society’s high attention. However, considerof the short time guarantees establish, the company’s own capital capability is relatively weak,the overall risk-resisting ability is relatively poor, and the guarantee company’s existing creditsystem and credit system is still not perfect, the guarantee company is easy to chaseshort-term interest and neglect of their overall development goals, many guarantee companiesdo not pay full attention to the budget management, There is no comprehensive budgetmanagement into the context of corporate governance, led to the development of enterprisesdeviate from the business development goals and cause to the incalculable risks for thecompany’s operating and long-term development.In this paper, I try to discuss how to establish and improve the budget managementsystem using the combination of theoretical analysis and case studies elaborate way to VTGuarantee Company.Wefound the problems and put forward a positive and practicalimprovements through the study of VT budgeting process, this paper presents a proposal toestablish a budget management committee, for individuals and teams to set up different keyperformance assessment indicators and cautionary assessment targets for the company’sguarantee business, execute strictly budget and the subsequent control, while the establishment of a rigorous performance appraisal system, give full play the enthusiasm of thevarious departments to give full play to the control functions of the financial sector in whichthe budget management, give full control authority to financial department in budgetmanagement, but also rolling budget and the use of the Balanced Scorecard, also put forwardthe relevant recommendations of the feasibility of the construction of information systems.