The Research On Comprehensive Budget Management Of Z Company

Comprehensive budget management is an important method of internal control and strategy management for enterprises, it is a comprehensive management activity based on budget, budgeting, budget execution, budget analysis, budget evaluation are the component of comprehensive budget. The initial role of budget management is planning and coordination; nowadays it has become an indispensable tool for enterprise staff motivation, internal control, assessment and evaluation. Along with the changing of the enterprise environment, the theory and system of comprehensive budget are gradually improving. More and more enterprises begin to implement comprehensive budget management and have achieved good results.In this paper, the Z company’s budget management research using the literature research, case analysis and comparative analysis. As a state-owned construction enterprise, Z Company begin to implement comprehensive budget management in 2006. After years of budget management practice, its current comprehensive budget management system has achieved some positive results. However, there are still a series of problems in the implementation process. This paper reviews the theoretical achievements and the development process of the comprehensive budget, expounds the concept, characteristics and business process of the comprehensive budget. Considering the characteristics of the construction industry and the current situation of Z company’s, for example, company Z for the current budget system of organization, preparation, implementation, evaluation and so on to carry out analysis, this paper affirms the fruit achieved by Z company in terms of cash flow budget, cost dynamic management and information system, which provide useful reference for other companies in the construction industry, analyses the disadvantage of capital budget, non-standard contracts etc. This paper put forward a series of proposals, for example, using zero-based budget as a method of budget preparation, dividing these three costs into avoidable cost and unavoidable cost, making a reasonable budget preparation for these three costs, setting up the budget early warning module and the arbitration module, improving the capital budgeting process, building a incentive and evaluation system for ordinary employees, enhancing employees’study of Contract law, strengthening the performance of the tracking process management etc,it puts forward some suggestions on improving the relevant supporting system of budget management which has strong practical significance to the follow-up management of Z company.