With the acceleration of the process of economic globalization and the rapid development of the mainland market economy, enterprises want to maintain rapid development, in addition to accurate market insight, they also need professional management means to assist enterprises to achieve their own development strategies.
With its unique strategic, comprehensive, systematic, integrated, mechanism and other characteristics, comprehensive budget management has gradually developed into a key link in the process of enterprise development, and is an important management means to achieve the goal of enterprise development.
The article will take the overview and significance of comprehensive budget management as the starting point, discuss the problems existing in the process of comprehensive budget management at the current stage of enterprises, and put forward solutions to existing problems, hoping to help improve the efficiency and level of comprehensive budget management of enterprises, enhance the operability and pertinence of comprehensive budget management, and help enterprise development.
Overview of overall budget management and its significant practical implications
Comprehensive budget management is a comprehensive management activity based on the strategic objectives of the enterprise, comprehensively planning and forecasting business activities and financial results in a certain period of time in the future, controlling and supervising the implementation of the whole process, and evaluating and feedback the implementation results. The management activities are company-wide, involving the whole department, supervising the whole process, and integrating planning, monitoring, execution, evaluation and motivation.
Comprehensive budget management scientifically integrates existing departments, operations and resources, which helps to achieve corporate strategy and business objectives faster. With the help of a comprehensive budget, the enterprise strategy can be concretized, and at the same time, the internal management mechanism can be improved, the division of labor of various departments can be clarified, and the contact between various departments can be brought closer, the enthusiasm of all employees can be mobilized, the operational efficiency can be improved, the allocation of enterprise resources can be optimized, and the utilization rate of resources can be improved.
Deficiencies in the overall budgeting process for businesses
(1) Enterprises have insufficient understanding of the overall budget from the top down
At this stage, many employees within the enterprise do not really realize the important role played by comprehensive budget management in the process of enterprise development, and even some middle and senior managers of enterprises believe that comprehensive budget management is only a financial behavior, which only needs to be prepared and implemented by the financial department.
Due to the existence of this reason, the company does not pay attention to, actively and cooperates with the preparation of comprehensive budget management from top to bottom, so that the comprehensive budget data deviates from the actual business, which greatly reduces the important role played by comprehensive budget management in the process of enterprise development and hinders the smooth realization of the strategic goals of the enterprise.
(2) Enterprises lack a sound comprehensive budget management organizational system and professional talents
A sound organizational system for comprehensive budget management is a necessary condition for the smooth and orderly development of comprehensive budget management work. At present, a considerable number of enterprise groups on the mainland have the problem of imperfect organizational system of comprehensive budget management in the process of implementing comprehensive budget management, resulting in the inability to clearly and accurately reflect the management links between enterprise groups and subsidiaries, the inability to transmit information in a timely manner, and the inability to accurately control budget implementation, which increases the difficulty and cost of management.
In addition, the lack of professional comprehensive budget management talents has caused the promotion of comprehensive budget management work and the implementation of analysis and assessment incentives are not in place, which cannot truly reflect the positive role of comprehensive budget on enterprise development.
(3) The overall budget data is disconnected from the market, enterprise positioning and strategy
In the process of budget preparation, enterprises lack effective market research and effective understanding of the industry, and often "pat their heads" to determine the budget. In addition, in the process of development, enterprise groups may pay too much attention to short-term goals and ignore long-term strategic goals, resulting in contradictions between long-term development strategies and short-term strategies, resulting in the phenomenon that the actual situation of enterprises is far from long-term development goals, which seriously affects the accuracy, scientificity, practicality and guidance of enterprise development of enterprises.
(4) The supervision and implementation of comprehensive budget management are insufficient
The overall budget management of the enterprise is the estimation of the development of the future enterprise, in the actual development process, by the national economic development, market environment, industry policies, the company's business strategy, the company's actual executors and other changes, so that the actual budget implementation deviates from the budget target. Many enterprises have not formulated a control and monitoring system corresponding to the deviation from the budget target and departed from the enterprise development strategy, and have not formed a closed-loop management process of prior approval, in-process control and post-review.
(5) The overall budget management is disconnected from the employee performance evaluation and appraisal
First of all, some enterprises have not implemented an appraisal mechanism linked to budget management and employee performance evaluation and appraisal, or employee appraisal is linked to comprehensive budget management data, but they have not timely feedback on the assessment results, and have not really guided employees to change their promotion and salary in the enterprise, making the comprehensive budget management have almost no sense of existence in the operation of the enterprise, which in turn causes various departments to pay more and more attention to budget work.
Second, the fairness and rationality of budget assessment are not in place. The deviation between the budget target and the actual implementation of the appraisal has not been identified as the root cause, the management cannot be given accurate management suggestions, the fairness and rationality of the performance appraisal cannot be adjusted in time, and the employee performance appraisal cannot be carried out according to the comprehensive budget data, and the appraisal is unfair and unreasonable, but it causes the loss of employees, causing a fatal blow to the development of the enterprise.
Measures for enterprises to build a comprehensive budget management system
(1) Deepen the degree of recognition of the comprehensive budget by the senior managers of the enterprise, and improve the budget management mechanism
The important role of comprehensive budget management in the development of enterprises first needs to be recognized, recognized and supported by senior managers, and then form a top-down understanding of the importance of comprehensive budget management, which is particularly important. As a systematic project, comprehensive budget management must establish a special organizational structure to be effectively implemented.
First of all, the company needs to set up a budget management committee, the members are mainly authorized by the board of directors or designated by the chairman of the board, to formulate a comprehensive budget management system applicable to the enterprise, the principle of budget preparation and review, and the principle of adjusting the budget final data. At the same time, problems, contradictions and conflicts that arise or are expected to arise in the budgeting process should also be taken into account and solutions should be formulated accordingly.
Second, the establishment of a budget management department, the financial department can be designated as the budget management department. Its main functions are to implement the relevant decisions formulated by the Budget Management Committee, to guide and summarize the overall budgeting of each department, and to analyze and report on deviations and other daily work.
Finally, the responsibilities of each department within the company in the overall budget management are clarified, and if necessary, the system can be used to constrain it. The Budget Management Committee and the Budget Management Department shall do a good job in understanding and publicizing the importance of the comprehensive budget among employees, so as to create a good corporate culture atmosphere for the comprehensive budget management. The system and publicity and implementation are two-pronged, actively promote the active and efficient cooperation between various departments and budget management departments, and do a good job in the comprehensive budget preparation and implementation of their own departments.
(2) Establish a professional comprehensive budget management team
Comprehensive budget management has a strong professionalism, comprehensiveness, but also to have a deeper understanding of the company's business, financial budget, the contradictions and deficiencies encountered in the comprehensive budget to give professional guidance and solutions, so the formation of a professional comprehensive budget management team is a necessary premise for the development of comprehensive budget work.
At present, the lack of professionalism and management experience is one of the main problems encountered by some enterprises in the actual implementation of the work, which in turn leads to the inability to accurately correct the budget, the inability to implement thoroughly, and the inability to indicate business risks, which greatly affects the implementation effect of the work.
Therefore, enterprises should absorb high-quality and high-level talents, and at the same time actively organize and carry out relevant internal comprehensive budget management training activities. The budget management department regularly organizes training activities based on the actual cases of comprehensive budget management, explains the contents and key points that need to be paid attention to in the operation process, encourages employees to share effective management experience with each other, and then discovers the shortcomings and problems in the process of budget management and corrects them in a timely manner.
Enterprises should also provide employees with the opportunity to go out to study, communicate and learn with professional teachers and leading enterprises in the same industry, improve their management capabilities, and cultivate professionals suitable for budget management of the enterprise.
(3) Improve the level of analysis of overall budget management
First, conduct regular analysis of key operating indicators. In the prescribed cycle, the completion of the key operating indicators of the enterprise is analyzed year-on-year and quarter-on-month in different cycles of monthly, quarterly, semi-annual and annual cycles.
Comparative analysis is carried out in various relevant aspects such as financial indicators, market share, and industry data comparison. In the process of enterprise production and operation, through the analysis of different dimensions of key indicators, problems can be found and solved in a timely manner, and the profit space of the enterprise will be expanded to achieve the healthy and steady development of the enterprise.
Second, build a comprehensive budget management data discrepancy feedback channel, the relevant personnel should regularly and accurately feedback the reasons for the difference between budget data and actual data to the management to ensure the smooth transmission of information. Driven by the budget difference feedback platform, the company can quickly feedback the shortcomings in the preparation, review, implementation and adjustment of budget management, and provide a strong guarantee for the subsequent implementation of comprehensive budget management.
(4) Optimize the budget appraisal and employee incentive system
A fair and reasonable appraisal mechanism is conducive to the steady advancement of the overall budget, to the realization of personal value of employees, and to the healthy, rapid and stable development of the enterprise, so the enterprise should actively promote the establishment of the budget appraisal system.
First, formulate fair and reasonable evaluation standards. The basis for the evaluation of each department throughout the year is the comprehensive budget data, and the assessment data cannot be changed arbitrarily once confirmed. Company appraisals should focus on linking scoring with individual business performance and salaries of employees, which will also promote departments to pay more attention to the rigor, accuracy and feasibility of comprehensive budgeting.
Secondly, in the employee appraisal and incentive, some indicators are quantitatively assessed, and the quantitative indicators can improve the intuitive feeling of the appraisal results and promote the implementation of comprehensive budget data.
(5) Create a platform for the integration of industry and finance, and implement refined budget control
With the development of Internet +, big data, and cloud computing, enterprises need to build a platform for industry-finance integration on the basis of improving the level of financial management. Create a business and financial integration information platform.
At present, although some enterprises have financial ERP and other platforms, the platform is limited to the output of financial documents and financial statements, and the level of data business analysis, budget control, and information links between departments is limited, and many departments are still in the situation of information islands in terms of information reception and use. In order to break down information barriers, enterprises are forced to create a series of industry-finance integration information platforms, strengthen information associations between horizontal departments, and strengthen information linkage between departments.
In addition, financial management needs to extend to refined management, and the budget indicators are effectively divided into specific responsible persons to form a vertical and refined budget management. By creating an integrated information platform for industry and finance, financial management is transformed from traditional post-event analysis to pre-participation, in-process control, and post-event analysis, so as to effectively make up for the shortcomings of business financial separation.
Conclusion of this article:
In summary, due to the influence of various unfavorable factors and various deficiencies in the development of enterprises, there are various obstacles when enterprises carry out comprehensive budget management, but even if there are many difficulties, enterprises that want to achieve rapid development must continue to promote comprehensive budget management work, so that they can contribute to the realization of strategic development goals for enterprises.
Author: Liu Si Source: China Collective Economy, No. 36, 2021
Disclaimer: This article is compiled by the editors of the "Management Accounting Knowledge Collection"