Research On Overall Budget Management Based On EVA

Global economic integration is like putting in the wings of science and technology.In recent decades the pace of development is getting faster and faster.Maximization of shareholder value has evolved into the starting point and foothold of all the economic activities of most enterprises.Comprehensive budget management as an advanced management concept has been widely accepted by most enterprises.The idea of the management method is conducive to the realization of shareholder value maximization.However,most of the enterprise's overall budget management system is useless.It cannot effectively control the economic activities of enterprises,some enterprises exist that the interests of the managers and owner are not common.It makes the enterprise management efficiency become too bad.Earnings distortion cannot better reflect the true value of the enterprise.EVA is an effective economic value indicator.EVA is the NOPAT after making up for all capital costs including equity capital costs.EVA is based on the company's traditional operating conditions.On the basis of extracted evaluation indicators,NOPAT reflect the real financial situation better.EVA breaks down the value of the enterprise driving factors,and throughout the overall budget management which has always been able to tap the value of enterprises and promote enterprise development.The relevance of EVA and corporate value is better,so EVA and comprehensive budget management to manage the enterprise can truly reflect the value of the company.This paper designs a comprehensive budget management framework based on EVA for example G Company.In order to compare the effect of the company after used the implementation of EVA.EVA is throughout the budget preparation,implementation,control,adjustment and evaluation of every aspect.The initial realization of the various links is to use a unified indicator to control.Make a direct link with the enterprise value of the overall budget management model.In the overall budget management in the introduction of EVA advantage is that it can reflect the real business performance.in the same time,it took into account the debt capital and equity capital.In the company's sustainable development process,the advantage of introducing EVA is that it takes into account both long-term and short-term goals,the shareholders of the interests of business decisions and tightly integrated,make that the agent really represents the interests of the client,promote the virtuous circle ofvalue system,and form a lasting competitive edge,lasting competitiveness.Effectively tap the value of the enterprise driving factors,more resources into the business to create a competitive advantage in the activities,these activities,which can increase the competitive advantage of enterprises,can in turn bring economic added value to the enterprise,through the above-mentioned cycle of benign business activities,the company will help to establish an effective incentive compensation system to maximize the value of enterprises,to maximize the interests of operators and shareholders,to maximize the company's long-term sustainable development.