Research On The Improvement Strategy For Financial Budget Management System Of J Company

Comprehensive budget management acquires importance increasingly as a new and effective management tool. The implementation of a comprehensive budget plays a decisive role in improving operational efficiency, optimizing the allocation of resources, maximizing corporate profit and strengthening risk management. Comprehensive budget includes investment budget, capital budget and financial budget, which is the basis for each unit to set the strategic objectives, control standards, assessment and rewards and punishments. Financial budget is the core content of it, and the reasonable and effective financial budget can not only make the decision more in line with the strategic needs, but also play a more important role of effective communication, coordination and reasonable allocation of resources. However, with the continuous development of modern economy, the traditional budget management highlights the limitations and defects, often separates itself from enterprise's overall strategy, lets managers only focus on the immediate interests and ignore the long-term strategic planning. Therefore, it would greatly weaken the role of budget management and is difficult to help enterprises to enhance the competitive ability and long-term development.J Company is a large-scale chemical enterprise with large production scale, complex process, high equipment investment, long payback period, and product price easily influenced by the fluctuations of raw material price, thus causing great uncertainty for the enterprise operation. Therefore, it is very important to adjust the strategy according to the actual situation. In view of this, this paper takes J Company's financial budget system as the research object based on the related theories of budget management to analyze the existing problems in J Company's financial budget system in respect of such three aspects as the budget preparation, implementation and assessment. By introducing the Balanced Score-Card and interaction control into J Company's financial budget management, it can realize the dynamic combination of business strategy and budget management, provide direction for the budget management roundly and effectively, and make the budget management more strategic and comprehensive.