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Five Processes Of Enterprise Budgeting

2008/9/17 9:18:00 41850

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Let's talk about the three questions and the four steps of the budget management of enterprises. Now let's share with you the five processes of budgeting.

Comprehensive budget management, budgeting is the beginning of its work, the compilation of a scientific, realistic, and departmental budgeting is the foundation of comprehensive budget management. How to do this is based on many years of practical experience, and the following five processes are considered.

First, collect the information required for the budget.

Comprehensive budget management refers to the enterprise's full and comprehensive prediction and planning for future business activities and corresponding financial results under the guidance of strategic objectives. Through the monitoring of the execution process, the actual completion and budget objectives are constantly compared and analyzed, so as to timely guide the improvement and adjustment of business activities, so as to help managers manage enterprises more effectively and achieve strategic goals to the maximum extent.

The enterprise budget is mainly to plan the future business and business results of the enterprise. There is a distinct feature in planning the future. It is highly uncertain. In order to solve this uncertainty, we need to sum up the historical rules and influencing factors.

The future business and business achievements can not be divorced from the existing production and operation basis of enterprises. History may not repeat its facts, but history will repeat its rules constantly, collect data, analyze the data and influence factors in the past period of time, find out the rules and improve the methods, do well in the aspects of doing well, and find out the causes and propose improvement measures. Only on this basis can we enhance the advantages and disadvantages of the enterprises, and better tap the potential resources of enterprises, so as to maximize the input and output of enterprises.

Because of this, enterprises should collect information from all aspects of enterprises before budgeting, so as to ensure the scientificity and continuity of budgeting.

Much information needs to be collected before budgeting. It mainly includes information on production and operation, technical information, market information and social environment. The information comes from information about production and operation, product technology and resource utilization inside enterprises, as well as information from customer needs, peer development and social and economic changes.

The information collected from enterprises is relatively simple, and can be collected and analyzed by the Department reports in the daily operation of enterprises. But in the collection process, we must pay attention to systematization and accumulation.

In the daily production and operation management of enterprises, all departments should report all kinds of reports to the enterprise management department. Most historical data in the process of budgeting can be obtained from these reports. It is best for enterprises to design reports from departments according to their own characteristics and comprehensive budget requirements, so as to reduce the workload of information collection in the process of budgeting.

Information obtained from outside enterprises is relatively complex and difficult. Customer demand, industry occurrence, technological progress, substitution entry, social and economic impact on industry, and national policies and decisions all determine the future survival and development of enterprises. These information constitute an important basis for enterprise budgeting, which directly determines the practicality and execution of enterprise budgeting.

In addition to customer surveys, customer seminars, industry conferences and seminars, enterprises can also use the Internet to obtain some information. In the current interconnected economic period, the amount of astronomical information makes it difficult to distinguish the true from the false, or even bother to collect, which is often the important reason for the budget of the enterprise to be divorced from reality.

Two. Making preliminary decisions.

The general process of enterprise budgeting is usually based on the analysis of the budget of the previous year. According to the internal and external information of the enterprise and the influence of the future strategy, resources, investment and environment on the future operation of the enterprise, a preliminary budgetary index of a budgetary year is given. The preliminary budgetary indicators are generally more general, and the output value and profit data are obtained, and the departments' production and operation plans are put forward according to certain methods (such as comprehensive meetings). After a few repeated attempts, the final consensus can be reached and the enterprise budgets can be worked out.

Enterprise budgeting generally needs to go down from top to bottom, and several bottom-up repeating can ultimately reach the same conclusion and draw the final budget assessment index.

The purpose of collecting information is to produce the first top-down data in a more practical way. This basic data not only reflects the strategic intent of the enterprise, but also can not be divorced from the actual development of the enterprise. How to handle it involves not only the realization of the strategic goals of the enterprise, but also the immediate interests of the executive departments. Under normal circumstances, as the managers of the enterprises, they want higher incomes and lower expenditures, so that they can generate enough profits. For the budgetary executing units, the opposite is the opposite, and the first indicator is very important.

If the index is too high, the executive departments can not see the hope, or perfunctory or conflicting, the index is too low, and the executive departments are picking fruit, which is not conducive to mobilizing the enthusiasm, but also may waste corporate resources.

In general, the initial budgetary data of enterprises are led by the enterprise budget leadership group. According to the implementation results of the previous year's budget, some factors to be solved, plus favorable conditions for improvement, and a combination of economic, technological development, environmental changes and other factors are used to calculate a index. (for the incomplete trust in collecting information, generally the first issued index will be higher than the theoretical measurement index). The discussion will be sent to all budgetary executive departments, and the departments should take out the Department's plan according to the objective, and describe in detail the completion of the planning method and the failure to complete the project.

After budgetary preliminary indicators are calculated, the decision-making level needs to explain the prediction process through the meeting (general manager's office meeting), and jointly with the enterprise strategy, jointly agree to maintain low targets (of course, keep low indicators generally not downwards). Under any circumstances, enterprises must keep this low.

Three. Initial goal decomposition.

The initial target of the enterprise is relatively comprehensive, and it is difficult to adapt to the management of the executive departments. These comprehensive indicators need to be pformed into specific budgetary indicators of various departments.

Into a department executable, inspection indicators, such as a simple income indicator, will have to be decomposed to the sales and manufacturing departments, and sales departments have to be decomposed to each part, area, salesperson, but also should be broken down into dozens of indicators, such as sales volume, sales price, withdrawal of payment, sales time limit and so on. Production is also like that, and it must be concretely implemented to teams or personnel. Only by decomposing the indicators concretely, the indicators can be concretely implemented to the executors, so that the whole budget management can be assessed. If the decomposition of indicators in the budgeting process is not in place, the matter is not implemented to the specific responsible person. The initial indicators of enterprise budget may be income, cost, profit, quality and so on. As a specific budget executive level, these indicators are often impossible to implement and must be changed.

It is impossible for the enterprise to decompose the target at all levels, and it is impossible for the whole enterprise to complete the task by the budgeting team. Most of the work must be organized by the heads of departments. The overall budget management should set up a systematic index decomposition, statistics and reporting system. According to the lower level truthful reporting, the higher level should be responsible for the lower level, and the whole index should be decomposed step by step.

The decomposition of sales figures is shown in the figure.

The budget group may only decompose the product variety and the planned price. The next large number of subdivision should be completed by the sales department organization. The decomposition of other indicators is also the case.

Budgeting should be focused on the decomposition of indicators, and the decomposition process of budgetary indicators is actually the implementation process of the overall production and operation plan of enterprises. It should be widely absorbed by the executive staff at all levels, and should not be limited to the budgeting team members. It should not be the heads of various departments in the small room. The information asymmetry exists at all levels. Enterprises should make full use of the timing of budgeting, publicize the enterprise strategy downwards, pmit the information that the enterprise has mastered, and collect the information that the executive layer has not yet grasped in the actual operation process. Only in this way can the various levels reach a real consensus on the final budget of the enterprises, so that the enterprise budget will eventually play a military role.

Four, several, several, summarize, analyze the grass-roots business plan

Enterprise budgeting is a complex task. It is impossible to simply decompose the initial indicators of the decision-making level to complete the task. When the index is broken down to the grass-roots level, the executive level will definitely put forward some conditions conducive to their own interests, and put forward amendments to the index according to the considerations of their own interests and detailed understanding of the tasks completed. Based on the asymmetry of information, the budget should be emphasized that the lower level should put forward the reasons at the same time, and should not be a few simple data.

Of course, the executive level proposes amendments or conditions. As a budget preparation team, it should not be ignored. It should be given a positive response. On the basis of the aggregate analysis, whether or not the amendments should be given a way out, can not be allowed to let go, and can not force people to suppress people. It should be based on facts and data to explain the reasons for accepting conditions.

For larger budgets that directly affect the overall objectives and tasks of an enterprise, it is necessary to organize appropriate personnel to conduct face-to-face discussions with the executive staff until agreement is reached.

Nowadays, in the process of budgeting, many enterprises are short of several communication links. Instead of a few heads, the brain and the brain are "fabricating" a few indicators. The execution of strong execution units is simply to allow the execution units to change the initial indicators to a mess. The final result is that the budget of the enterprise can not play a role in management.

Of course, although the enterprise has perfect budgeting communication means, it can not guarantee that all indicators can reach a consensus based on the opinions of the decision-making level. In this case, enterprises should carefully handle and analyze scientifically, and feel that it is really a problem of executive level. According to the principle of "replacing others with ideas", we should sometimes make proper adjustments to the executive personnel and not tolerate them.

Five, finalize the enterprise budget.