On GHSY Budget Management Improvement In Private Enterprises

Exactly when the supportive policies from our country are implemented,private enterprises in China encounter the difficulties in financing,and the problems of non-standard management and so on in the process of further development currently.In 2019,the National Development and Reform Commission,the Ministry of Finance,the China Banking Regulatory Commission and other ministries frequently announced their declaration and issued relevant policies to target at breaking industry access restrictions,dealing with the problems of financing,reducing the burden from cost,and optimizing business environment,for the purpose of helping private enterprises break away from the pain points in their development with accuracy.When confronted with all these problems,it is of vital importance for private enterprises to figure out the way of improving their internal management.It is required that private enterprises should improve their ability of governance,carry out budget m anagement,and improve internal control,so as to guarantee their competitive advantage in market competition,and then further promote the healthy development of them.On the basis of the budget management-related theories at home and abroad,this paper conducts relevant analysis on the experiences and lessons of private enterprises in the implementation of budget man agement.It is found that GHSY company encounters the problems as follows in implementing budget management.Firstly,poor understanding of budget management.Secondly,budget m anagement informationization construction lag behind.Thirdly,incomplete organization for budget management.Fifthly,company resources are insufficiently integrated.Sixthly,the assessment and incentive mechanism are imperfect.The problems mentioned above are analysed in detail by employing th e theories of control,incentive,principal-agent and information asymmetry,and suggestions on optimization are put forward as well.Based on the development phase and management requirement of GHSY company,the strategic goal of "achieving multiple development by relying on resources" is integrated into the system of budget management.Then,its feasibility is further enhanced by employing goal decomposition and staged assessment,and the ultimate goal of the enterprise is realized through the assistance from financial indicators and non-financial indicators.Apart from that,the balanced scorecard is brought in for the purpose of dealing with the problems such as the imbalance between the long-term goals and short-term goals of the company by adopting the assessment on non-financial indicators.Moreover,the index system including budget preparation,implementation,control and assessment is stimulated and perfected by using non-financial indicators,so as to improve the execution of budget management in relevant enterprises.It is observed in daily work that the combination of balanced scorecard and budget management is able to offset the defect of attaching importance to financial indicators only in traditional budget management,which improves the efficiency of budget management in relevant enterprises.Through the study,this paper proposes some suggestions on improving the budget management of private enterprises.It is known that the budget management models adopted by private enterprises at different phases are different,and the strategy-oriented budget management model will be further perfected.Moreover,the adoption of balanced scorecard and performance evaluation system which goes beyond budget will stimulate relevant enterprises to achieve their strategic targets and operation targets with success.This paper attaches importance to the analysis on the framework,measures and solutions to specific problems in the establishment of budget management in private enterprises,but it pays little attention to the problems of budget responsibility shirking and its impact.