EVA-based Company A Comprehensive Budget Management

With the changes in the market environment and the transformation of modern enterprise management technology capabilities,the traditional budget management model is difficult to achieve the core goal of maximizing enterprise value.In order not to be eliminated by the times,China actively explores modern enterprise budget management methods to find more effective budget management methods.In recent years,China has actively studied and explored the application of EVA,and used it as an important indicator of enterprise performance evaluation system.However,the implementation effect of EVA in enterprises is not satisfactory,and it still cannot change the shortsightedness of corporate budget goals.How to apply the EVA theory to the company’s comprehensive budget management and establish a comprehensive budget management system based on EVA is an urgent problem to be solved at present.This article takes Company A as an example,combines EVA theory with traditional comprehensive budget management,and establishes an integrated budget management system based on EVA,which aims to help enterprises achieve maximum benefits.It is expected to accumulate experience in improving comprehensive budget management and promote in-depth research on the comprehensive budget management model of enterprises.This article starts with the research status of domestic and foreign scholars on comprehensive budget management,EVA and EVA-based comprehensive budget management.It briefly introduces the theory of comprehensive budget management and EVA,and expounds the analysis of the application of EVA in comprehensive budget management.On this basis,this article takes company A as the research object,and makes an in-depth analysis and description of the construction of a comprehensive budget management system based on EVA.At present,the comprehensive budget management of Company A adopts the traditional profit model.This paper analyzes its current comprehensive budget management organization,preparation,execution control and evaluation model.The study found that company A’s comprehensive budget management system has short-sighted budget goals.The budget management system is not conducive to the realization of the company’s long-term value,and there is no specific budget evaluation and incentive method.In response to the above problems,this article reconstructs a set of EVA-based comprehensive budget management system for company A.The plan design includes relevant contents such as implementation goals,principles,ideas,organizational structure,budget preparation,execution control and evaluation.The budget organization is divided into EVA responsibility centers,and the budget is prepared based on the EVA goals.Therefore,its budget execution control and evaluation are closely integrated with EVA indicators.Finally,some safeguards are proposed to ensure the effective implementation of a comprehensive budget management system.