Research On The Reform Of Traditional Budget Of Manufacturing Industry Under The Supply-side Reform

Under the supply-side reform,the mismatch of supply and demand and overcapacity are the two major problems bothering many manufacturing enterprises.As a very important means of corporate governance,the budget needs to play the role of implementing the strategy,leading the overall situation,integrating the information and optimizing the allocation of resources.For the traditional budget concept is no longer adapted to the needs of the new economic environment,it has to change and improve urgently.The research on how to use the budget correctly and efficiently in the situation of the supply-side reform can help enterprises to better comply with the development of the times and quickly e mancipate fro m the predicament of overcapacity and swelling inventories.In this paper,based on a literature review which sort out the related literatures on comprehensive budget based on strategy,manufacturing industry's budgets,budgets under informatization environment and budgets under the supply-side reform in recent years,I expound related basic theory,including the traditional budget and its limitations,the comprehensive budget based on strategy and its functions,as well as the basic connotation of the supply-side reform.Then I take an automobile group as an example to analyze its process of budget reform under the supply-side reform.Finally,I draw a conclusion of my research,including two aspects.In the aspect of theory,there is three key points for traditional budget: the view of comprehensive budget based on strategy is the basis,the quality management is the core and the informatization environment is the guarantee.Comprehensive budget based on strategy comprises four changes: add the long-term budgeting,establish special budget for important projects,introduce balanced scorecard system and the EVA index,emphasize the participation and coordination of all members.Quality management consists of product,asset and benefit's quality management,so enterprises should establish long-term R&D,fixed assets investment and financial comprehensive budget that match with strategy.In the aspect of A automobile group's case,I draw a conclusion of its reasons and measures for the refor m of the traditional budget under the supply-side reform,the application effect after the refor m and the suggestions for the future improvement.