Positioning Of The Main Body Of Budget Management

(1) in the process of making sales budget management, according to the information asymmetry between specialized departments caused by division of labor, the sales department will grasp the future sales situation of enterprises. If the budget is only for the purpose of giving full play to management decision making functions (such as selling products), the sales Department will give out the information it grasped without authorization and share it with all departments. However, if one of the objectives of budget management is to exert management control functions (such as performance evaluation criteria), the sales department may deliberately underestimate future sales revenue, which is conducive to its performance evaluation.

However, underestimation will result in a corresponding reduction in production planning, and the production of enterprises will not be able to achieve the highest efficiency. For example, in order to allocate funds in various departments according to the budget management, all departments may exaggerate the fund demand of their departments in order to have greater freedom in the use of funds and control more funds, resulting in the waste of funds, which is obviously contrary to the original intention of communication and coordination in budgetary management.

Therefore, in order to solve the contradiction between the above functions and departments, in the practice of budgetary management, on the one hand, all departments should be involved in the formulation of budgetary management, so as to promote the maximum flow of information, make the budgeting more detailed and increase the scientificity and operability of budget management.

On the other hand, in the past, many enterprises only completed the budget and carried out the implementation by the finance department, reduced the authority of budget management, and caused the soft budget constraint of enterprises. To solve this problem, the top leaders of enterprises should be involved in the budget management and final decision making power. Only in this way can the feasible budget management plan be worked out from the overall situation of the whole enterprise.

(two) setting up a budget committee. The budget management committee shall be composed of managers of important functional departments and headed by senior business leaders. The budget management committee coordinates the information sharing among departments so that departments can reach agreement on basic assumptions. Basically, only through the budget management committee. Approval Otherwise, no budget or forecast data can be accepted.

This budget management Organization form The functions are not only budgetary making, but also follow-up, such as implementation, adjustment and supervision of budget management. If we solve the contradictions in all departments (similar to the internal arbitration committee) in the process of implementing budget management, we can find out the deviation between enterprise activities and budget management at any time and analyze the reasons. If some basic assumptions have changed significantly, we should adjust the budgetary management as soon as possible.

　　 Budget management committee The composition of personnel should adhere to the principle of authority, the principle of comprehensive representation and the principle of efficiency. The authority principle refers to that the budget management must be authoritative and can be carried out in practical work, and its members must have absolute control over the activities of their departments. The principle of comprehensive representation refers to the ability to fully represent the interests of all departments and all levels and make them reasonably reflected in budgetary management. The principle of efficiency is to ensure the efficiency of the Committee. This determines that the number of members should not be excessive, and we must be capable, efficient and unified.