Study On Optimization Of Comprehensive Budget Management In R Company

Budget management is a method in Management Accounting. Its original function was just to plan and coordinate the production and development activity, but now, it has developed to be a management mechanism to implement strategic policy comprehensively. With the functions of control, motivation and evaluation, etc., budget management plays a core role in the management and control system in enterprise. Comprehensive budget management is a system in which all sectors can be linked tightly to each other, and the enterprise can command the full process including investment, profiting and distribution. Budget management can help realize the optimization of resource allocation to meet the requirements of each departments and activities, and to realize the business owners’ expectations. David Otley, the famous Professor of management, considers it as one the few management and control methods which can integrate all the vital aspects of organization management into one system.The management in small and medium-sized enterprises (SMEs) is considered as a difficulty because their organization structures are not clear, and the regulations and policies are not implemented strictly. The contradiction between the boss and the employees is an important reason, too. In this thesis, the author take R company for example of case, check the target setting, organization structure, budget methods and process of its budget management, and form a diagnosis. With the guidance of comprehensive management theory, the author brings up some countermeasures in many aspects, such as organization structure establishment, The decomposition and implementation flow of budget target, the budgetary adjustment and approval flow, the cost quota management system, the approval authorization policy and budget assessment mechanism. Hope these resolutions are helpful for other similar enterprises.