Study On SG Company’s Comprehensive Budget Management System Based On EVA

The outbreak of black swan events such as the COVID-19 global pandemic and the resurgence of ideological trends such as unilateralism,trade protectionism and antiglobalization have not only hit the global economy hard,but also increased the instability of the global economy and intensified the competitive pressure of Chinese enterprises.Enterprise to be in the wind and waves,even against the wind to fly courageously best ",requires that the enterprise must hard skills,improve enterprise management level,it was time for the comprehensive budget management tools are promising,but the traditional comprehensive budget management to profit as the starting point,for short-term gain value is much higher than the long-term value creation,Inevitably lead to the company’s budget goal deviate from the strategic target,at the same time in the lack of capital cost concept in the budget establishment,execution,control and examination of no balance financial indexes and non-financial indexes were weighted,the execution of the budget in a perfunctory phenomenon is obvious,these defects will be negative impact on the long-term development of the enterprise.Therefore,enterprises are in urgent need of a brand new budget management mode to meet the changing market environment and the needs of their own management and development.EVA(Economic Value Added)is in such a background,gradually into the practitioners of the concept of comprehensive budget management.As an emerging value management tool,EVA provides a brand new perspective and method for enterprises to carry out value management and enhance the ability of value creation.Because it adds the consideration of the cost of equity capital into the calculation of enterprise value creation,its calculation results are closer to the actual value creation level of enterprises.Therefore,the comprehensive budget management system based on EVA can better activate the limited resources of enterprises,improve the efficiency of resource use and the level of value creation.However,the existing theoretical research materials related to comprehensive budget management based on EVA are relatively insufficient.In order to give full play to the advantages of comprehensive budget management,this paper will further explore the construction of comprehensive budget management system based on EVA,and integrate the value management concept advocated by EVA theory into the comprehensive budget management system.Explore to introduce EVA into the new path of enterprise comprehensive budget management,enrich the existing theory and practice of comprehensive budget management.In this paper,the iron and steel industry of SG company as a case study object,through the comprehensive budget management and economic added value is introduced on the basis of related theory,through the interview SG company employees,consult the disclosure information,on the basis of a comprehensive understanding of the company,in detail and analyzes the SG company situation and existing problems of comprehensive budget management,Analyses the reasons and the problems,then the build of the comprehensive budget management system based on EVA,on the basis of feasibility analysis on the company’s organizational structure reconstruction,set up to adapt to the company’s overall budget management system based on EVA,and respectively from the budget,budget control,budget evaluation to simulate the comprehensive budget management in aspects of operation.Then it puts forward a series of safeguard measures to guarantee the smooth operation of the comprehensive budget management system.Finally,the conclusion is drawn,and the research results of this paper are expected to be used for reference by other companies.