Research On The Total Budget System Of S Textile Company Based On EVA

In order to meet the needs of the development of modern enterprises,the total budget management of enterprises,as a scientific method of management,optimizes the resources of enterprises and reflects them in digital form.However,the traditional budget management aims to improve profits,which has the disadvantages of short-term and volatility.EVA,named economic added value,refers to the traditional financial indicators and the cost of capital.At present,the State Council of the People's Republic of China and SASAC had promoted central enterprises to use EVA as a part of the performance evaluation system.Many scholars also actively take central enterprises as a case study to introduce the concept of EVA into the overall budget management of enterprises.As one of the representatives of the private enterprises in the traditional textile industry,S textile company needs to combine EVA with the total budget management to maximize the value of the enterprise.This paper uses case analysis method to summarize the general situation of textile industry and S company on the basis of relevant literature research.Based on the current situation of S company's total budget,it points out the problems in setting,preparing,controlling and evaluating the company's budget objectives,and analyzes the causes.After explaining the necessity and feasibility of introducing EVA,this paper optimizes the budget organizational structure of S company,sets up and decomposes the budget target value based on EVA in combination with the company's strategy,and optimizes the overall budget preparation process on this basis,which involves the budget preparation of business,capital and finance and forms EVA budget table;introduces the differential authorization in the budget control link Management,budget fund pool and other management and control methods,and the use of Z-score comprehensive model to build early warning mechanism;finally,based on the strategy of S company,the use of AHP design based on EVA total budget performance evaluation system,give financial and non-financial indicators reasonable weight.Thus forming a more comprehensive optimization design of s textile company's total budget system based on EVA.In addition,It puts forward the guarantee measures of total budget management,including building EVA environment,strengthening budget difference analysis,strengthening budget rigid control and building information system.Through the construction of EVA based total budget system of S company,this paper seeks for the new growth space of the enterprise,promotes the enterprise to achieve the long-term strategic goal,at the same time,it also plays a perfect role in the existing budget management theory research,and provides some reference for other private enterprises to update their budget management.