Using Rolling Budgets To Grasp The Future Of An Enterprise

< p > < strong > (1) < a href= > http://www.91se91.com/news/index_c.asp > rolling budget < /a > accord with people's understanding rule.

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< p > the production and operation activities of enterprises are complex and changeable. When budgeting is made, people have formed a certain consensus on the prediction and analysis of various factors that affect the production and business activities in the budget period.

However, as time goes on, it will produce all kinds of unexpected changes, which will undoubtedly affect the correctness of the budget, and even lead to some budget inopportune.

Besides, people's understanding of future objective things also has a process from coarse to fine, from simple to concrete. Rolling budgets can help us overcome the blindness of budget and avoid bigger budget and actual people.

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< p > < strong > (two) rolling budget helps to improve the accuracy of < a href= < http://www.91se91.com/news/index_c.asp > budget < /a >.

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< p > rolling budget has a dynamic fixed characteristic during the budget period. Its fixed characteristic is that the rolling budget always has to maintain a fixed budget period, usually one year or longer than a year's operation cycle; it has dynamic characteristics, because every month, it adjusts and corrections the budget of the following months according to the new situation that has been grasped, and adds one month's budget at the end of the original budget period.

It can be seen that rolling budgets are constantly revising, adjusting and extending budgets in the process of budget implementation.

With the passage of time, the original budget has been gradually thinning, and at the same time, a new budget has been added.

The accuracy of the budget has been continuously improved.

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< p > < strong > (three) rolling budget is helpful for the enterprise management to grasp the future of the enterprise from the dynamic.

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< p > first, we can make all levels of < a href= "http://www.91se91.com/news/index_c.asp" > /a > always keep careful consideration and overall planning for the next 12 months or even longer term of production and operation activities, ensure that the work of the enterprise is carried out in an orderly way; once again, it is convenient for the outside world (bank credit departments, tax authorities and investors, etc.) to have a consistent understanding of the business status of the enterprises; finally, due to the continuous adjustment and revision of the budget, the budget is more suited to the actual situation, and is conducive to giving full play to the guiding and controlling role of the budget.

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< p > of course, budgeting is rather heavy with the method of rolling budgeting.

Therefore, we can also use quarterly rolling to compile budgets, and in the quarter of the implementation of the budget, we should make specific budgets in accordance with the monthly average, so that we can streamline budgeting.

In short, whether the budget is rolled or rolled quarterly depends on actual needs.

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< p > in order to make the whole budget work in an orderly way, a budget management committee is generally set up within the enterprise to be responsible for the compilation, implementation, control, coordination and guidance of the budget.

It usually consists of enterprise leaders, supply, production, marketing and finance departments, such as the head of the Department and chief accountant or chief financial officer.

Its main task is to formulate and promulgate a comprehensive policy on the budgetary system.

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< < p > to review and coordinate the budget declarations of various departments, deal with the contradictions and disputes that may arise in the budgeting of the parties concerned, and finally approve the budget, give the index, and check the implementation of the budget at any time, and deal with the important problems arising from the budget management process.

In order to further strengthen budgetary management, enterprises can also explore the implementation of operational budget management and deepen the budget management of enterprises.

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