Enterprise Annual Budget Making Process

Before the budget is made by the centers and departments, it is necessary to make the production indicators, sales targets and profit indicators clear and clear, which are the three major prerequisites for making a good budget.

At the same time, regardless of the budget of the central maritime department, in addition to budgeting the demand and matching level of resources in the new year, and combining the factors such as the development of the center and the enterprise, the budget will be more reasonable.

What is more critical is that every time we make a budget, we can make a comparative analysis of the increase or decrease of the indicators three years ago, so that we can see clearly at the same time; avoid the phenomenon of sitting down and closing doors, thus making the indicators more feasible; the number of high-level directional indicators, the growth rate, the total number of budgets on a budget, the growth rate or the decline, at least let the top leaders see at a glance, even if decision-making, because of the growth or reduction ratio and other key elements, is also feasible.

Determine whether the goal is consistent with the actual development of the enterprise, otherwise, if the target is changeable or unstable, make the budget, putting the cart before the horse, will only do too much useless work.

For enterprises, every year

Different goals and different development trends.

The expansion of production capacity is expanded for enterprises to create benefits; market expansion is for enterprises to create benefits; expansion of manpower structure is for enterprises to create benefits and expand.

At each stage, the development of enterprises has different emphasis.

Accordingly, there are differences in budgetary setting.

If the new year is defined as the year of expansion of the infrastructure or the market expansion year, this means that the profits of the company will not only be used for the market and infrastructure, but also there will be a shortage of funds, which needs to be refinancing to meet the rapid expansion needs of enterprises.

If the new year is the year of market success, this means that the input cost of the company will be reduced and the cost of profits will rise.

Whether the profits of enterprises are positive or negative, we must let the top executives realize the positive and negative causes, the proportion of increase or decrease and the cycle of input and output.

I have participated in such a field before.

Because the price factor has not yet been determined, the enterprise is busy with the budget meeting, and the result can be imagined that the profit is negative.

Several profit indicators, the boss saw at first glance unreasonable, will open for half a day, made a circle of middle level, ministers so many people, and even a central director, no one put forward.

If not mentioned, they will continue to argue about their respective interests.

For business owners, a series of negative indicators also indicate that the whole year is still dry.

What can we do without profit? We can stand up and talk.

The boss of the enterprise said impolitely.

Price factors and product structure factors can be regarded as

The key link is also the key to the profitability of enterprises.

And how to price is subject to changes in the price of raw materials, the proportion of products coming out of town and the proportion of product mix.

This requires that the production, finance, marketing and technology departments of enterprises jointly determine the relevant index factors of products and price system together before they can further make the profit index of enterprises more precise.