Enterprise Financial Budget Making Method

　 (1) enterprises Budget compilation Generally, it should be carried out in accordance with the procedure of "upper and lower integration, horizontal coordination, and summary by stages".

1. make annual plans. The budget is based on the plan. Therefore, the budget can urge managers at all levels to make plans ahead of schedule, avoid blind development and suffer unnecessary operational risks and financial risks. Only by formulating the annual development plan of the company next year, can departments make specific budgets according to the plan.

2., target. After the annual plan is determined, the company leaders generally propose the next year's financial budget targets in the late September, according to the economic development of enterprises and the forecast economic situation, including turnover, gross profit margins, profits, expenses and cash flows.

3. budget briefing. As the leading unit, the enterprise financial department should hold a budget preparation briefing session in mid October, and explain the principles of budgeting and auditing to all departments. It also sends out historical performance data, various budget forms, and compilation instructions of various subjects to departments.

4. unit budgeting. Budgets Execution unit According to the annual work plan of each unit and the company's financial budget target, the detailed budget is prepared according to different subjects, sub projects and months. It was reported to the corporate finance department in late October.

5. budget Coordination Committee. enterprise Finance Department The budget for each department was audited and summarized, and a budget coordination meeting was held in early November. The purpose of the coordination meeting is to solve erroneous budgeting, sceptical budgeting and unreasonable budgeting. After coordinating the meeting, the units will carry out budget adjustment according to the requirements of the meeting. If there is a need for coordination, the finance department should continue to hold a budget coordination meeting until all the issues are solved.

6. budget confirmation. In mid December of each year, when the financial department of the enterprise and the budgetary objectives of each unit are jointly confirmed, the "estimated profit and loss statement" and "cash flow statement" are compiled by the finance, and the draft of the annual financial budget of the enterprise is formally prepared for submission to the company's leadership or the board of directors for approval.

7., the implementation. In late December of each year, the financial department of the enterprise is assigned to the budget department according to the annual financial budget approved by the company's leadership or the board of directors. This is the basis for analyzing the actual and budgetary objectives of the year.

　　 (two) financial budgets of enterprises can be compiled according to different budgetary items, such as fixed budget, flexible budget, rolling budget, zero base budget and probability budget. The zero base budget is commonly used, but it can also be organically combined with several methods.

The zero base budget is based on the zero point of budgetary receipts and payments, and the budget is decided by the necessity and rationality of the expenditures in the budget period, or the feasibility of the revenues and the size of the budget.

The zero base budget can not only reduce expenses, but also make sure that the limited cost is used in the most needed place, and the compilation process of zero base budgeting is the process of exploring the potentials of all departments and employees of an enterprise. Through the compilation of the zero base budget, the necessary expenses of enterprises are guaranteed, the normal expenses of enterprises are controlled, the abnormal expenses of enterprises are checked, and the budget effect is obvious.