Research On The Improvement Project Of Budget Management In ZJ Building Materials Company

As a small private enterprise who products the mid-level piles, ZJ building materials company is in a strategic transformation period. So the budget management level has to be improved for the company development.This paper firstly generalizes the company`s basic situation. Through the financial indicator analysis, we can find that the main products keep an extremely low margin. Then, this paper introduces the current budget management situation from the aspects of the organization framework, system, mode, main process, from which we can find that the company`s budget management is not implemented according to the regulation.Based on the above situation, this paper analyzes the existing problems and causes from the budget design aspect and the budget implementation aspect. The research of the budget design problem is based on the theory of management control, finding that budget design has been separated from the company strategy. The research of the budget implementation problem is based on the theory of behavioral science. Through the game theory, we can find that in this process, there exists the conflict of interest between shareholders and manager.To solve the above problem, this article set up the budget management model based on the BSC and ABM. There are six steps to finish:(1)clear the company strategy;(2)comb the company operating system;(3)establish the strategic operation system;(4)introduce the KPI index system;(5)integrate the budget platform;(6)establish the company performance evaluation model. On the other hand, combined with the principal-agent theory, this paper puts forward the opinions and suggestions in order to solve the conflict of interest problem and ensure the effective implementation of the company’s budget management.