Research On Comprehensive Budget Management Of S Water Group From The Perspective Of Business And Finance Integration

To cope with the fierce market competition,companies uses comprehensive budget management as a key and effective operation method to achieve its ultimate strategic development goal through all-round management and control.To substantially improve the disconnection of business and finance as well as information asymmetry prevailing in budgeting,integrating of business and financial in comprehensive management is of essential importance as it is an important solution to improve companies’ management.Therefore,S Water Group begins to realize the importance of business and finance integration and becomes aware of the deficiencies in its current budget management.As such,it is necessary to analyze the problems and causes of such problems in the comprehensive budget management of S Water group,and to propose optimizing method based on integration of business and financial in order to promote the realization of S Water Group’s operation goal.This paper,taking the S Water Group as the research object,conducted a systematic research on S Water Group’s comprehensive budget management using comprehensive budget management theory,process re-engineering theory,value chain management theory and balanced score card theory based on the analysis of research works both domestically and overseas.To start with,this paper identified the problems in different steps of comprehensive management including goal setting,budget preparation,budget execution and adjustment,budget assessment and supervision and proposed corresponding optimization measures.Based on the above work,this papers further discussed the vital factors causing the failure of S Water Group’s comprehensive budget management in meeting desired effecting are the unreasonable structure in budget organization,absence of budget management system and information system,and shortage of talents.Then,the author proposes the business process re-engineering under the premise of integrating business with financial based on construction of information system which enhanced the resource exchange between financial activities and business activities to optimize business process.To conclude,the author points out,the integration of business and finance can effective improve the relationship between finance team and business team and strengthen budget control.This paper can provide experience,Subsequently,this paper designs the business process re-engineering under the business and finance integration,the resource penetration and financial control of basic financial activities and basic business activities.Finally,this paper points out that the business and finance integration into budget management can improve the business correlation degree of budget management and the effect of budget control.The research in this paper can provide reference for other water enterprises,contribute to the inclusion of business and finance integration in the execution of comprehensive budget management,and offer practical experience in building a sound budget management system.