A Comprehensive Budget System Optimization Study For L Company Based On Balanced Score Card

Comprehensive budget management is a useful tool for realizing corporate strategy and improving internal resource allocation,which is instrumental to perfect corporate governance and enhance core competitiveness.Balanced Score Card refines enterprise strategy,transforming it into a set of strategic operations and implementation system,with performance evaluation and strategic management achieved.A comprehensive budget based on BSC can bridge the gap between strategy and operations,balance internal and external development,financial and non-financial performance,which will guide rational allocation of resources,improve business performance and serve enterprise strategy.L company is a steel enterprise.So as to adapt to market and enhance competitiveness,L company expects to optimize comprehensive budget management,promoting efficiency and quality improvement and cultivating core competitiveness.Taking the case of L company,the paper discusses the historical evolution and research status of budget management,using literature research methodology,investigation and case study method.By the means of corporate interviews and on-site investigations,the essay introduces the current situation of L company’s comprehensive budget management,summarizes problems in its management process,build a strategic-oriented comprehensive budget system using BSC theory and put forward safeguards for implementation.The paper aims to help solve the current budget issue and prove that the introduction of Balanced Score Card in modern enterprises has a qualitative leap for the overall budget management.The main problems of L company’s comprehensive budget are as follows.Dislocation of budget objective and strategy,single lag of budget indicators and lack of systematic consideration,majority of financial indicators,weak budget base,backward information construction,low participation and the implementation control is weak.BSC as pointcut,the application framework of L company’s comprehensive budget system is constructed.The paper uses SWOT analysis clarifying strategic objectives.On the basis of BSC,it is divided into strategic drivers of finance,customer,internal process,learning and growth and a strategic map is drawn.The paper decomposes strategic drivers and designs budget management index under four dimensions,integrating BSC idea into L company’s comprehensive budget system.Further,the paper designs indicators and indicator values under dimensions of financial and internal process to ensure strategy landing.In addition,it is recommended that L company set up comprehensive budget management information platform,monitor key indicators daily,improve budget audit monitoring and set up integrated index assessment program,to promote the optimal allocation of factors of production and improve business performance continuously.The paper applies comprehensive budget management based on BSC to steel industry,adheres to strategic orientation and introduces non-financial indicators which measure future development ability of the enterprise.The study enriches the application case of BSC theory in enterprise comprehensive budget and provides new ideas and methods for comprehensive budget management research based on the idea of Balanced Score Card.