A Power Supply Enterprise Budget Management Research

As a major method for internal administration and control of an company, budgetmanagement system enjoys a long history for more than one hundred years. Budgetmanagement system has been extensively approved and applied since1920s’ Budgeting asone of the managerial control way which could integrate all key issue existed in theorganization in one system. But present budgeting models are facing criticisms which includelong-winded preparation cycle, lack of accuracy in budget data, mismatch with corporatestrategy, oriented to financial results, adjustable difficulty and inability to adapt to the newoperational environment. Similarities exist in Chinese enterprises.From1990s’, A lot oflarge and medium Chinese companies began to carry out budget management in companymanagement, but,generally speaking, its application is not universal in China. Even some ofour companies have adopt budget management system, there are still big differences inapplication effect of this method because we are still lack of understanding and practice of itand we still need further scientific approach to improve it.The budget starting point is definde to operation characteristics and market environmentto choose the suitable budget management patterns, focusing on the strategy,then companyshould difine the suitable budget management pattens.Because there are various budgetsetting process and methods among which enterprises can choose in accordance with differentneeds. The budget should be strictly followed once it is approved. Adjustment is allowed onlywhen there are objective changes. The budget evaluation is also an indispensable process forthe successful implementation. The achievement appraisal of the staff and proper reward willmake the most of corporate motivation mechanism and restraining mechanism so that thebudget management system can move in a virtuous circle.In the survey, the author found that power supply corporations’ budget managementsystem has many problems and their administrative expense is huger than other kinds ofenterprise. This is why power supply corporations’ cost is so high. So the author believedthat power supply enterprises must improve their budget management systems. In this articlethe author discussed how to improve power supply enterprises’ budget managementsystems.