Researeh On Indicator System Of Enterprise Budget Evaluation Based On BSC

The budget as a management method is being more and more popular with the development of market economy in China and increasingly complex business environment. Comprehensive budget management regarded as a relatively mature budget model is widely used in our country. In 2010, the Ministry of Finance jointing four ministries issued" No.15 Application Guidelines for Enterprise Internal Control-the comprehensive budget", which entered comprehensive budget management into a stage of gradual spread in China. The budget evaluation, the last procedure of the comprehensive budget management process, is an effective means which can evaluate the implementation performance of comprehensive budget management. It would not only control the present period budget, but also amend and improve the performance of next period budget. Obviously, budget evaluation plays a vital role in comprehensive budget management. Focusing on the budget evaluation of comprehensive budget management, the author attempted to establish budget evaluation indicator system based on BSC. It would guide enterprises to evaluate the performance of comprehensive budget management and help them promote the implementation quality so that strategic objectives will be realized.The author researched on the indicator system of evaluation budget to design an objective and strategic budget evaluation indicator system, combining theory with examples research methods. The system was aimed to guide enterprises to achieve a better budget evaluation and improve the implementation performance of comprehensive budget management. The author introduced related concepts about the budget, and cleared main research idea about budget evaluation system according to Strategic Management Theory, System Management Theory and Stakeholder Theory. Namely, the Balanced Score Card would be introduced into the comprehensive budget management evaluation, including the whole budget process. Based on the situation of budget evaluation, the author deeply analyzed current budget evaluation issues from the perspective of internal and external to design effective evaluation indicators. The author achieved a complete budget evaluation system, after selecting evaluation indicators by BSC, calculating indicators weights by AHP and setting indicators score standards. Also, the author demonstrated the application of the system through an example. The author evaluated W’s budget performance according to its budget situation, and gave recommendations for improvement of the comprehensive budget management by analyzing budget evaluation scores.