Strategy-oriented Comprehensive Budget Management System Development

Overall budget management is significant for the realization of an enterprises’ strategies. However, Chinese enterprises still face various problems in implementing the overall budget management. From the perspective of the practice observation, it is necessary to discuss how to build the strategy-oriented comprehensive budget management system, explore how to give full play to the overall budget management, implement strategic objectives, realize the ration allocation of resources and reach the targets of operation and management.This paper takes the H cigarette industrial enterprise (hereinafter referred to as H enterprise) as the major research object and the budget organizational development, budget management model construction, budget system development and budget informatization development as the entry points to discuss related problems encountered and solved by H enterprise in the transitional period from the development stage of overall budget management to the upgrading stage and anticipate the possible problems and countermeasures in the upgrading stage.According to the specific situations of H enterprise and the working experience of the author, the paper summarizes the lessons learned in the process of H enterprise’s comprehensive management system development and makes in-dept analysis and explanation on related problems. This paper conducts in-depth research and thinking in the aspects of handling related decisions and the function of decision support appropriately, adopting rational and effective management models to give full play to the related specified management department and other budget responsible departments, representing the strategic orientation on the basis of the critical job management requirements, establishing the budget management system which pays equal attention to the procedure and entity and takes both the normalization and guiding character into consideration and making full use of the information systems to reduce the implementation cost of the overall budget management. In this way, it aims to serve as references for Chinese cigarette industrial enterprises and large and medium-sized enterprises in other industries in promoting the comprehensive budget management system development and raise the level of the overall budget management.Innovations of this paper:Firstly, it proposes that the budget organization is the critical problem for enterprise to implement overall budget management. H enterprise builds the three-tier budget responsible parties to handle the positioning problem of budget committee and budget office appropriately. Secondly, it points out that the brand strategy-oriented budget management model based on critical activities should be established. Thirdly, it presents the thinking for enterprises to design and improve the budget management system according to the organizational structure and budget responsibilities. Fourthly, it points out the thinking for the connection between the budget projects and the accounting titles.