Research On The Application Of The Balanced Scorecard In Enterprise's Comprehensive Budget Management

In the year of 2014, the State Council issued a decision on deepening the reform of the budget management system, which explained the directions and measures of budget management reforming system. The decisions mostly focus on optimizing the fiscal expenditure structure, strengthening the budget implementation management, improving the fiscal expenditure performance and establishing accountability mechanism. In 2010, a research group in China also investigated 58 large and medium-sized enterprises' internal management, which founded that about a third of enterprises implemented the comprehensive budget management. Comprehensive budget management as an effective means of control plays an important role between government departments and enterprises. But as the method gets more and more popular, the traditional budget model exposed more and more problems as well. Firstly, the traditional budget cannot be adapted to enterprise's strategic goals. Secondly, budget assessment index is not balanced, mostly focusing on the financial indicators. Thirdly, some cumulative indexes cannot be reflected in the budget. In view of the traditional budget management problems, many scholars put forward a great idea that combining the balanced score card and comprehensive budget management. The establishment for combining the two models is a good way to balance the financial and non-financial indexes and it can unify the enterprise's overall development goals and development strategy.On the basis of the above ideas, I use literature research, case analysis and questionnaire methods to study how to optimize the enterprise comprehensive budget management. Firstly, I will know the industry backgrounds and read the related policies. Then I have to collect the related literatures and raise my own opinion after studying predecessor's papers. Secondly,I summarize the transaction cost theory, strategic management theory and control theory on the basis of the connotation of the budget management. Third, through related data analysis, I found the comprehensive budget management in the enterprise application exist defects, and raising the balanced score card as an effective tool. Fourthly, in the case of A company, I ensure the strategic goals of the A company, and then I launch a concrete analysis about the A company's budget preparation and evaluation. I found it does not reflect the company strategy, just on the basis of historical data. So I use the balanced scorecard to optimize its overall budget management system. Finally, I come to the conclusions and put forward some countermeasures and suggestions for the industry and the individuals.Through the above research, we come to the conclusion that the balanced score card can help enterprises to achieve strategic objectives and comprehensive budget effective docking. Balanced score card take a overall vision on the long-term development of the enterprise, it tell the enterprise how to achieve purpose in a quantitative way. With the guidance of this idea, I've add some new factors into the traditional financial index, in order to help enterprises to balance internal and external goals, long-term and short-term goals.