The Role Of Comprehensive Budget Management In Group Management And Control

No matter what kind of management mode the group company adopts, the comprehensive budget is one of the most effective and necessary means of management and control.

A comprehensive budget is a series of quantitative overall arrangements for the company's business activities.

The so-called "comprehensive", on the one hand, refers to the whole process of budget management running through the company's business activities. It is a budget management based on the company's development strategy, medium and long term planning and annual business plan. On the other hand, it refers to the participation of all departments and staff members in the whole budget management.

Comprehensive budget management is an effective tool for internal control of a group. It is a comprehensive management mechanism that integrates functions of control, motivation and evaluation. It is the core position of enterprise internal control. It is one of the few management control methods that can integrate all the key issues of a organization into a system.

As a control tool, a comprehensive budget is of great importance to any group control system.

The specific significance of the overall budget for group control is that it has refined the development strategy and business plan of the group company, defined the responsibilities and responsibilities of each molecule company, and provided specific work objectives for them. It provided the basis for management monitoring in the execution process, and provided standards for the performance appraisal of the nuclear core managers (or teams) of the molecular companies and molecular companies.

comprehensive

comprehensive budget

In each period, the operation status of each molecular company will be summarized through internal management financial system, standardized and unified information reporting system, and feedback will be collected step by step to ensure smooth information so as to achieve effective and timely monitoring of the implementation of strategic objectives, so as to ensure the realization of strategic objectives.

The comprehensive budget provides a benchmark and a comparative basis for the performance appraisal of the managers of molecular companies and molecular companies, and links the implementation with the incentive system to ensure that the objectives of each molecular company are consistent with the strategic planning of the group company.

A comprehensive budget emphasizes the effectiveness, comprehensiveness and balance of budget assessment.

In general, the balanced scorecard can be introduced into the budget evaluation index system, so as to integrate and enhance the performance management level of the group company and ensure the overall development of the group company.

I. The overall budget is

There are many interest relations between the parent company and its subsidiaries, holding companies, subsidiaries and holding companies, such as the pfer of funds, the decentralization of investment, the control and release of consumer funds. If these financial relationships are not handled well, there will be two tendencies in the group business. One is to eat big pot, to share the hardships and unhappiness, to whip fast cattle, and to have low efficiency in capital utilization; two, to lose control of management, to invest in a company, to finance in disorder, to make a random list of costs, and to make profits and losses.

How to do well the financial control and risk control of group enterprises is a difficult problem for financial management and control of group enterprises.

The core issue of enterprise group management is to integrate subordinate two levels of business units and their internal levels and staff together to operate around the overall objectives of the enterprise group, that is, the so-called integration.

The implementation of comprehensive budget management is an effective way to achieve group integration.

The comprehensive budget management is different from the simple budgeting. It is a general term for the internal management activities or processes of enterprises that are quantified and implemented in the budget by the decision objectives and resource allocation of enterprises.

The overall budget management embodies the idea of Decentralization under the premise of power sharing. Through decentralization of power and responsibility and centralized supervision, it can promote effective allocation of enterprise resources, achieve enterprise goals and improve production efficiency.

Two. Comprehensive budget promotes the strategic objectives of enterprises.

Further arrangement for strategic planning, description of future business development blueprints for business operators, investors and shareholders, coordination of the work of various departments, control tools and assessment standards are key functions of the comprehensive budget in the enterprise management and control system.

Budget is a management method of the company's overall planning and dynamic control. It is a series of quantitative planning arrangements for the company's overall business activities. The overall budget management has refined the company's overall strategic development goals and annual business plans.

Three. A comprehensive budget provides benchmarks and references for group enterprises.

A comprehensive budget involves all branches, subsidiaries and departments, as well as various business activities. It effectively pushes the actions of different sub branches, subsidiaries and departments to set specific and feasible goals, and establishes the code of conduct that they must abide by.

The budget is an effective tool for controlling in advance, in and after events. It is convenient for management to control and supervise the execution of the business in the process, find out the deviation in the execution and determine the size of the deviation in time, and the budget is the benchmark and reference for management monitoring in the process of execution.

Budget is also the basis and comparative object of performance appraisal for sub companies, subsidiaries and departments.

As a whole, the management of the group enterprise has two functions of planning and controlling, and they are all inseparable from the budget.

Planning is the way to set goals and achieve goals. Control is to execute plans according to scheduled plans and evaluate business performance and employee performance.

The comprehensive budget is the quantification of the action plan. It helps the management to coordinate the plan, carry out the plan and complete the plan.

Management uses budgeting in planning and control as a strategy.

Plan and carry out all kinds of actions to achieve the goal, and evaluate the operating activities through the comparison of the actual and budget.

At the same time, feedback from performance evaluation helps managers to control current activities and coordinate planning procedures.

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