A Case Study Of ZM's Comprehensive Budget Management Based On A Control Perspective

Comprehensive budget management is an indispensable part of the modern enterprise management system.It is a closed-loop management system which includes setting up budget goals to specific budgeting planning,actual budget execution and control,post budget analysis and budget assessment.Comprehensive budget management divides the long-term strategic objectives of enterprises into specific business objectives and it is conducive to co-ordinate the direction of future development of enterprises,optimize the allocation of resources to prevent business risks,and better achieve the functions of decision-making and internal control.In recent years,China is committed to promoting the application of comprehensive budget management,and introduced a series of systems to promote the progress of corporate budget management.Although most enterprises in our country have implemented comprehensive budget management,but in the specific implementation process,the effectiveness of budget control vary widely due to different industry characteristics,different life cycle enterprises are in and different methods to budget management.This paper adopts the case study method,chooses ZM company as the object to study its universal and special budget management mode and mainly focuses on how to fully play the role of control in comprehensive budget management.First,this paper summarizes the research results of comprehensive budget management and the basic theory of comprehensive budget management at home and abroad.Secondly,it conducts a case study on ZM's comprehensive budget management,focusing on the development,implementation and control,analysis,examination of these specific business aspects of ZM budget to analyze the implementation process,application of the comprehensive budget and to evaluate its budget management.It has found that ZM has established the budget management system,improved the budget organization system,regulated the process of budget management and introduced the cost control system.However,there are still some outstanding problems in practice: the budget is not accurate;the preparation procesure of direct construction investment budget is complex;budget analysis is not in place and the assessment procesure is abscent.These problems have made the effects of budget control less valid.Further analysis found that these problems have their profound roots: the complexity of the track industry business,the political particularity of the state-owned enterprises,the particularity of the budget assessment objectives,etc.All these problems will affect the specific work of the enterprise budget management and the control effect.Based on the analysis of the causes to these problems,recommendations are proposed to optimize the overall quality of budget control: the budget management objectives included in the company's overall development goals' responsibility book;the introduction of budget management information system;strengthening the budget control and the formation of closed-loop management process and so on.