Reconstruction Of HC Group Financial Budget Compilation Method Based On Long Range Plan

As a very effective management system,budget management is attached more and more importance in the enterprise management mode.As the core content of the budget,the financial budget also attracts people’s attention.The implementation of financial budget management,is conductive to strengthen the enterprise internal control,is conducive to the performance appraisal,is conducive to quantifying the goal of various functional departments of enterprises,effectively integrated of enterprise resources and maximized the realization of the economic efficiency of enterprises.Thus,the financial budget management plays an increasingly important role in the enterprise operation target realization.HC Company is currently using the traditional financial budget method,relying on historical data as the basis for the company’s annual budget.Budget is outstanding for the financial characteristics,difficult to connect with the long range strategic planning of the company.The budget emphasizes data and financial culture,while the strategy stresses the business culture and non-financial factors.Therefore,either in the aspect of budget compilation or monitoring and evaluation,the traditional budget system is the lack of strategic relevance.The internal structure of the traditional budget,is the lack of an effective tool to describe the strategy implementation logic to correctly show the logic route of enterprise value,and make budget method trapped in the misunderstanding of describing the value added path by financial data.Under this economic and management background,especially in the special environment that China’s current budget management theory and practice is not mature,how to establish a set of strategic orientation method for the preparation of the budget,melt strategic thinking effectively into the various aspects of the budget management,in order to ensure the budget management of strategic support,to promote the efficient operation of enterprises has important significance.The HC company financial budget management system is used as the research object,to analyze the research status of domestic and foreign budget management,to use budgeting method,financial budget theory as the support,to analyze the implementation of HC Company budget management system.First,by the result analysis of the group’s financial budget including expected income statement,expected balance sheet,expected cash flow statement,propose the status that financial budget cannot be used to guide long-term development;secondly,elaborate the long-term development vision and planning of HC company,introduce the profits and cash flow planning for the next eight years.Finally,in view of the problems existing in the management of financial budget,proposed the requirements of financial budget preparation and implementation combined with long range planning,in order to further implement the business strategy of the enterprise,continuously improve management efficiency and operational efficiency,realize the maximization of enterprise value.