Comprehensive Budget Management 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 comprehensive budget management embodies the philosophy of "decentralization" under the premise of power sharing. Through decentralization of powers and responsibilities, centralized supervision can promote effective allocation of enterprise resources, achieve enterprise goals and improve production efficiency.

Budget management is an important management mode of modern enterprises, especially enterprise groups.

However, nowadays many enterprises are biased in understanding the budget management. They often focus on budgeting rather than management, making budgeting management a mere formality, which fails to achieve the desired results.

From the definition of budget management, we can see that budget management is a running and operable management control system including budgeting, execution, supervision, assessment and encouragement.

The purpose of group budget setting is: (1) make annual arrangements for long-term planning; (2) coordinate the work of various departments; (3) clarify the responsibilities of various departments; (4) provide the basis for performance evaluation.

In budgetary management, we should first harden budgetary constraints and strictly enforce budgetary execution.

Through budgetary constraints, employees clearly know what the budget target is and what should be done and what should not be done in the process of achieving the goal.

For this purpose, enterprises should do the following 3 aspects:

First, refining the budget.

The establishment of a clear budget is an important prerequisite for implementing budget management.

If the budget is vague and general, the execution of the budget is as if the ship losing its course in the sea is at a loss.

The key to compiling a clear budget is to refine the budget.

The budget system, responsibilities, indicators, costs, quotas and other aspects of the refinement, decomposition into every corner of management and individuals.

The refinement of the system can ensure that every management activity of the enterprise can be followed. The refinement of responsibility can improve work efficiency and prevent wrangling. The refinement of cost is conducive to cost analysis and seeks ways to reduce costs; the refinement of indicators and quotas helps to assess the results of budget implementation and encourage employees.

Two, strict implementation.

If the budget is well prepared, if the implementation is not effective, it is only a matter of paper, so we must strictly enforce the budget.

Through responsibility refinement, we must control the voucher pfer and approval procedures in the process of budget execution, so as to ensure the effectiveness of budget execution.

For example, the budget management committee can coordinate the budget execution departments of all two levels of units to make cost control cards and plan material cards to control budget execution.

Then, according to the nature and amount of the cost items and the importance of the relative responsibility center, the control cards are controlled annually or monthly.

As the last point of control, for general business, when dealing with services, it is the first to see whether there is a budget. If there is no budget, the item will be rejected.

Overspending can be made under special circumstances, but the adjustment procedures should be made up.

Three, powerful

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The implementation of budget is closely related to supervision. Effective supervision is an important guarantee for effective implementation.

In order to strengthen supervision and enhance the objectivity, impartiality and independence of supervision, the work of budgetary supervision is made up of

The management committee shall work together with the internal audit department of the enterprise.

The internal audit department does not participate in the compilation of the budget, but only supervises the execution process and results of the budget, and is directly responsible for the director of the budget management committee (usually the general manager of the enterprise).

The internal audit department can, on the one hand, make a surprise attack on all two levels of units in the process of budget execution with the help of the enterprise's financial network system. On the other hand, it can carry out periodical review according to the summary results of the financial department at the end of the term.

Budget management should also advocate humanism.

Through the intrinsic motivation of human centered management, employees can execute the budget voluntarily and voluntarily, and achieve twice the result with half the effort.

As a result, enterprises should do well in 3 aspects:

First, establish staff participation consciousness.

Because enterprise budget management involves all aspects of enterprise production and operation activities, all aspects of these aspects are shared by different departments and individuals. They are most familiar with the actual situation.

The budget management is the most effective way for an enterprise to involve all the employees directly or indirectly in the process of budget management and actively contribute to budgetary management.

What's more, business managers listen to their speeches in this way, so that they can put forward their opinions and make employees feel valued, so as to motivate them to participate in budget management.

To lay a solid mass foundation for the smooth progress of the budget work so as to ensure the completion of the business objectives of the enterprise.

Two, appropriate authorization.

Through proper authorization, employees feel that they are being valued, and have a high sense of professionalism and responsibility because they have a field that they can control. Moreover, budget management itself contains the philosophical thought of "decentralization" under the premise of right sharing.

By decentralization of powers and powers, centralization of supervision and disposal rights, the unification of decentralization and centralization can be achieved and the purpose of decentralization of powers and responsibilities and centralized control can be achieved.

Therefore, when budgeting, the relevant authority and financial power can be put into the execution units through the refinement of the system and responsibilities, and the executive units will master them, while the supervision and disposal rights will be concentrated on the budget management committee.

On the one hand, the general manager can be managed according to the exception principle, and the work efficiency can be improved. On the other hand, the staff should be encouraged to carry out the budget more responsibly and promote the realization of the budgetary goals.