How To Make Financial Management More Comprehensive

The management of the group enterprise shoulders two functions of planning and controlling, and they are all inseparable from the budget.

Planning is the way to set goals and achieve goals. Control is to execute plans according to scheduled plans and evaluate business performance and employee performance.

The comprehensive budget is the quantification of the action plan. It helps the management to coordinate the plan, carry out the plan and complete the plan.

Management uses budgeting in planning and control as a strategy.

Plan and carry out all kinds of actions to achieve the goal, and evaluate the operating activities through the comparison of the actual and budget.

At the same time, feedback from performance evaluation helps managers to control current activities and coordinate planning procedures.

The comprehensive budget has become the core method of management control. The famous management scientist David Ollie said that the comprehensive budget management is one of the few management control methods that can integrate all the key problems of the organization into a system.

There are many interest relations between the parent company and its subsidiaries, holding companies, subsidiaries and holding companies, such as the pfer of funds, the decentralization of investment, the control and release of consumer funds. If these financial relationships are not handled well, there will be two tendencies in the group business. One is to eat big pot, to suffer from unhappiness, to whip fast cattle, and to have low efficiency in capital utilization; two, to lose control of management, to invest in a subsidiary company, to raise funds in disorder, and to arrange costs randomly.

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How to do well the financial control and risk control of group enterprises is a difficult problem for financial management and control 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.

And implement the comprehensive

It 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 idea of Decentralization under the premise of power sharing. Through decentralization of power and responsibility and centralized supervision, it can promote effective allocation of enterprise resources, achieve enterprise goals and improve.

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Further arrangement for strategic planning, description of future business development blueprints for business operators, investors and shareholders, coordination of the work of various departments, control tools and assessment standards are key functions of the comprehensive budget in the enterprise management and control system.

Budget is a management method of the company's overall planning and dynamic control. It is a series of quantitative planning arrangements for the company's overall business activities. The overall budget management has refined the company's overall strategic development goals and annual business plans.

A comprehensive budget involves all branches, subsidiaries and departments, as well as various business activities. It effectively pushes the actions of different sub branches, subsidiaries and departments to set specific and feasible goals, and establishes the code of conduct that they must abide by.

The budget is an effective tool for controlling in advance, in and after events. It is convenient for management to control and supervise the execution of the business in the process, find out the deviation in the execution and determine the size of the deviation in time, and the budget is the benchmark and reference for management monitoring in the process of execution.

Budget is also the basis and comparative object of performance appraisal for sub companies, subsidiaries and departments.