The first section is the diagram of strategic planning, comprehensive budget and performance management.
The relationship among strategic planning, comprehensive budget and performance management can be expressed by the following model:
Figure 1: Relationship model of strategic planning, comprehensive budget and performance management
The relationship model of strategic planning, comprehensive budget and performance management in figure 1 mainly consists of the following parts:
1. Enterprises must first have a clear strategic plan, that is, the company's development strategy and annual strategic action plan;
2. Companies and departments prepare their own annual business plans according to strategic planning, which should at least cover strategic requirements, resource input, business activity arrangement, etc., which are helpful to generate key performance indicators of the company and non-financial key performance indicators of the department;
3. According to the annual operation plan, each business department prepares revenue budget, cost budget and investment budget, and the management and business support department prepares expense budget to generate financial key performance indicators of each department. After the financial headquarters summarizes the business plans and budgets of various departments, it forms the company's profit and loss budget, cash flow budget and assets and liabilities budget;
4. The management at all levels of the enterprise regularly analyzes, monitors and makes decisions on the budget implementation by using the budget implementation report. Among them, the main contents of the budget implementation report include regular financial analysis and evaluation results;
5. In the process of implementing business objectives, managers can monitor business progress with the help of various levels and different frequencies of budget implementation reports, and quickly adopt corresponding action plans through efficient management evaluation mechanisms to solve problems in time. If necessary, we can even make necessary adjustments to the original comprehensive budget system and key performance indicators system to better adapt to the company's actual operating conditions and changing market environment and achieve the company's established strategic goals.
In figure 1, the strategy, budget and performance of an enterprise really form a closed loop and are an inseparable organic whole. Only through the efficient interaction of the three can enterprises achieve the established strategic goals. In this process, the budget plays an important role in connecting the past with the future. On the one hand, the comprehensive budget is the detailed and quantitative embodiment of the company's strategic planning. On the other hand, comprehensive budget is also the main source of key performance indicators of companies and departments, and it is the basis and basis of the company's entire performance management. By improving the efficiency of business plan and budget and establishing corresponding performance management, the company's business activities can better reflect the requirements of the company's strategic planning and improve the core competitiveness of enterprises.
Section II Concept, Purpose and Function of Comprehensive Budget
1. The concept of comprehensive budget
A comprehensive budget is an overall forecast of the business activities and financial performance of an enterprise in a certain period (usually one year or a certain period). Including business plans (such as the annual business plans of companies and departments, etc.). ) and budget (such as revenue budget, expense budget, capital expenditure budget, profit and loss budget, cash flow budget, asset and liability budget, etc.). ).
Comprehensive budget is a management tool and a set of systematic management methods. Comprehensive budget helps enterprises to achieve the established strategic objectives through rational allocation of strategic resources such as human resources, financial resources and material resources, cooperates with corresponding performance management, monitors the implementation progress of strategic objectives, controls expenses, and predicts capital demand and profits.
The preparation, implementation and adjustment of comprehensive budget involve all departments and key personnel of the company, including all business departments and functional departments of the company.
2. The purpose and function of comprehensive budget
Comprehensive budget is the formal quantitative expression of enterprise strategic planning. On the premise of following the strategic objectives of the enterprise, this paper summarizes the strategic objectives of the enterprise and the feasible steps to realize them. The purpose and function of implementing comprehensive budget management in enterprises mainly include the following aspects:
Budget and strategic management:
Comprehensive budget can refine the company's strategic planning and annual business plan, which is a series of quantitative planning arrangements for the company's overall business activities and is conducive to the monitoring and implementation of strategic planning and annual business plan.
Through the preparation of comprehensive budget, it will help the communication between the company's superiors and subordinates, departments and departments, enhance mutual understanding, and deepen the understanding of the company's strategy by departments and employees.
The comprehensive budget also sets a certain behavior standard for all employees of the company, clarifies the direction of efforts, and makes their behavior conform to the company's strategic objectives and budget requirements.
Through the preparation of the company's comprehensive budget, the company's management must seriously consider the ways and means needed to achieve the business objectives and prepare for the possible changes in the market.
Budget and performance evaluation:
Comprehensive budget is the basis for the company to implement performance management and the main basis for employee performance appraisal. Through the combination of budget and performance management, the company's evaluation of its departments and employees can truly achieve "rules to follow and laws to follow."
Budget and resource allocation:
Some data in the comprehensive budget system will directly measure the scale of financial resources, material resources and manpower of enterprises in the next year, which can be used as one of the important basis for scheduling and allocating resources.
Budget and risk control:
Comprehensive budget is an effective tool for company management to monitor before, during and after the event. By finding the gap between the actual results of business activities and the budget, we can quickly find the problems and take corresponding solutions in time. By strengthening internal control, reduce the company's daily business risks.
In the comprehensive budget system, we can initially reveal the expected business situation of the enterprise in the next year, predict the risk points according to the reflected budget results, and take some preventive measures for risk control in advance, so as to avoid and resolve risks.
Promote budget and income and save costs;
Through comprehensive budget, we can strengthen cost control and effectively reduce the company's operating costs.
The comprehensive budget system includes the income, cost and expenses of the enterprise. Through the prediction of these factors, combined with budget report and performance reward and punishment measures, the actual operating level of the next year can be monitored and decided on a daily basis. When the company's income and cost levels deviate from the budget, enterprise decision makers can take necessary management measures to improve them according to the problems reflected in the budget report. Moreover, considering the matching relationship between income and cost, the comprehensive budget system can provide more accurate cost-saving estimates when the income level increases.
Section III Composition of Comprehensive Budget
Comprehensive budget and traditional budget are two completely different concepts. In addition to all aspects of the traditional budget, a comprehensive budget should also include the annual business plans of companies and departments. Therefore, comprehensive budget can better reflect the connection between budget and strategic planning.
Figure II: Components of a comprehensive budget
Specifically, the comprehensive budget prepared according to the company's strategic planning mainly includes two parts: business plan and budget. Among them, the business plan includes the annual business plan of the company and the department. Each department of the company prepares its own budget according to the established annual business plan. Among them, the business department prepares the revenue budget, expense budget and investment budget, the functional department prepares the expense budget, and the financial department prepares the company's annual profit and loss budget, cash flow budget and assets and liabilities budget, which together constitute the company's comprehensive budget.
Chapter II Organizational Structure and Division of Responsibilities of Comprehensive Budget Management System
The first section of the overall setting of organizational structure and institutional positioning
Section 2 Decision-making Organs
1. constitutes a department
General Manager's Office Meeting (Budget Management Committee)
Step 2 write a composition
The General Manager's Office (Budget Management Committee) is a non-permanent organization, and its members include the general manager, deputy general manager in charge, financial department manager and other business or management department managers. The general manager of the company serves as the director of the management Committee, and the vice president (in charge of finance) serves as the executive deputy director of the Committee. In addition, a secretary of the Budget Management Committee should be established, who is the specific budget preparation and operation personnel of the financial department.
3. The main responsibilities of budget management
(1) Budget Start
Hold regular budget kick-off meetings in September every year to determine the company's annual business plan and annual business objectives according to the company's strategic planning.
(2) Budget Balance Meeting
Regular inter-departmental budget balance meetings are held in June 5438+February every year to determine the revision opinions of departmental budgets and departmental operating plans.
(3) The budget was officially issued.
At the beginning of next year, after receiving the annual budget indicators officially issued by the Hong Kong company, the company will determine the annual business objectives and the adjustment opinions of the annual budget.
(4) Over-budget approval
Approve the application for general expenditure exceeding budget within the approval authority.
Conduct feasibility study review and design review for projects within its examination and approval authority.
(5) Budget execution analysis and budget adjustment
In July each year, according to the analysis results of budget implementation, the annual budget adjustment application put forward by each department in the middle of the year is determined regularly.
To examine and approve the suggestions on adjusting the budget management system submitted by the financial department in March and September each year.
(6) Other budget management responsibilities
Formulate and publish the company's daily budget management system
Approve and publish the company's annual business plan, provisional budget plan, resolutions of various budget management meetings and other formal management documents.
Arbitration and settlement of other abnormal, urgent or important budget management matters or budget conflicts within the company.
4. Inflow/outflow of forms or information
Inflow form or information
Relevant annual working documents of Hong Kong Group Company (annual budget indicators of the company)
Relevant annual working documents of Beijing Group Corporation
Department and summary forecast report
Review the operation plans of all departments.
Draft budgets of the company and various departments
Forecast report
Suggestions on budget adjustment at the beginning of the year
Over-budget application
Feasibility study report of engineering project
Engineering project design report
Summarize the mid-year adjustment suggestions of the budget
Analysis Report on the Company's Budget Implementation in the First Half of the Year
Summary of adjustment scheme of budget management system
Outflow form or information
Company's annual business plan
Business indicators and business requirements broken down by various departments
Comments on the revision of the first draft of the annual business plan and budget of each department
The annual budget plan submitted by the company to the Hong Kong company
The company's provisional budget plan
Company budget adjustment resolution at the beginning of the year
Opinions on examination and approval of over-budget application
Examination and approval of feasibility study of engineering project
Approval of engineering project design
Company's mid-year budget adjustment resolution
Opinions on examination and approval of budget management system adjustment suggestions
Section 3 Permanent Executive Body
1. constitutes a department
financial department
2. The main responsibilities of budget management
(1) Budget Start
Responsible for collecting and summarizing the preliminary forecast reports and related materials for the next year submitted by various departments, analyzing the financial data of the company's annual financial forecast and making suggestions, submitting them to the general manager's office for discussion, and determining the company's annual strategic objectives and plans.
After each department sets up a budget team, it conducts annual budget preparation training and issues a full set of budget tables and preparation instructions.
(2) Budget preparation, revision and summary
Before 1 1 month every year, complete and submit the annual human resources demand and one-time fixed assets purchase demand in the department.
Preliminary review and communication adjustment of the budget table submitted by each department before 1 1.05 every year.
Prepare the budget statement of assets, liabilities, income and expenditure, and the budget of the three major financial statements.
Submit the first draft of the annual summary budget and the explanation of special budget items.
According to the resolution of the budget pre-approval meeting of the company, revise the annual business plan and related budget of the department, and collect the revised draft of each department again for summary and report.
(3) Budget pre-release and official release
Every year in 65438+February, the provisional budget plan for the next year, countersigned by the general manager and deputy general manager, will be officially issued.
Prepare the company's annual budget plan and submit it to the annual budget of Hong Kong.
In February next year, according to the annual budget indicators issued by the Hong Kong company, the original budget plan of the company is proposed to be adjusted.
According to the resolution of the budget adjustment meeting at the beginning of the year, revise the departmental budget plan, collect the revised drafts of various departments and summarize and report them.
(4) Over-budget approval
Examine and approve the application for general expenditure exceeding the budget within the examination and approval authority, and make corresponding adjustments to the original budget when necessary.
Participate in the joint review of the feasibility study, design and contract of the project within the examination and approval authority, and make corresponding adjustments to the original annual investment arrangement and investment budget when necessary.
(5) Budget execution analysis and budget adjustment
When evaluating the actual implementation of the budget, provide the actual figures and business statistics related to the budget of each department, summarize and further analyze the budget implementation analysis table filled in and returned by each department.
Regularly analyze and summarize the budget implementation of this department, and prepare the business analysis report of this department, find out the reasons for the difference between budget and implementation, and put forward suggestions for improvement.
In early June of each year, referring to the actual operation of the department in the first half of the year and the changes of the company and department plans, submit the application and suggestions for departmental budget adjustment in the second half of the year.
Summarize and preliminarily balance the mid-year budget adjustment suggestions of various departments.
Formulate the company's budget adjustment plan, and adjust the budget according to the budget adjustment resolution of the budget management Committee in the middle of the year.
Collect and summarize the adjustment suggestions of various departments on the budget management system twice a year, and formally update the relevant systems and forms after submitting them to the Budget Management Committee for approval.
(6) Other budgetary responsibilities.
After the relevant budget management meeting, the contents of the meeting resolution will be written and sent to relevant departments in time.
3. Inflow/outflow of forms or information
Inflow form or information
Preliminary forecast report of each department
Annual company operation plan
Various budget forms prepared by various departments
Budgeting report submitted by each department with the budget table.
Annual budget target document issued by Hong Kong companies.
Opinions on examination and approval of over-budget application
Budget execution analysis table of each department
Application form for mid-year budget adjustment of various departments
Suggestions on adjusting the budget management system of various departments
Outflow form or information
Summary forecast report of each department
Minutes of budget start-up meeting
Training materials for annual budgeting.
Department and company annual budget preparation instructions.
Complete set of blank budget forms
Annual operation plan of the department
Asset budget
Debt budget
Income and expenditure budget
Profit and profit distribution table budget
Balance sheet budget
Cash flow statement budget
Suggestions on adjusting the provisional budget at the beginning of the year
Formal annual budget (countersigned by company leaders)
Opinions on examination and approval of over-budget application
Actual data of budget execution of each department
Business statistics of various departments
Departmental budget execution analysis table
Business analysis report of this department
Company budget execution analysis materials
Financial analysis report
Mid-year budget adjustment proposal
Summary document of adjustment suggestions for budget management system of each department.
Section IV Executive Body
1. constitutes a department
sales departments
Sales department
Fixed assets investment department
Operation and maintenance department
Strategic planning department
Human resources department
manage
2. Sales Department
2. 1 Main responsibilities of budget management
(1) Budget Start
Before the annual budget is officially launched, make a preliminary forecast of the sales revenue and cost for the next year.
(2) Budget preparation and revision
Prepare the annual business plan of this department according to the company's annual business plan, internal and external statistical analysis data and marketing plan at the beginning of June 5438+ 10 every year.
According to the department's operation plan and market situation, the number of users is predicted and analyzed in detail.
According to the forecast of the number of users, the calculation method of the budget model and other related materials, the detailed revenue and expenditure budget and the necessary summary budget of the department are compiled, and the relevant budget materials are sent to the relevant departments according to the time limit in the management process.
Submit sales project requirements (business hall construction, OA system, BOSS system, etc.). ) The first ten days of 10 every year.
Before 1 1 month every year, complete and submit the annual human resources demand and one-time fixed assets purchase demand of the department.
According to the resolutions of the general manager's office meeting (Budget Management Committee), such as pre-approval and pre-release, formal release of budget, etc. , modify the department's annual business plan and budget plan.
(3) Over-budget approval
According to the requirements of the examination and approval authority, the department examines and approves the in-budget and out-of-budget applications within the department.
Participate in the feasibility study, design and contract review of sales-related projects within the approval authority.
(4) Budget execution analysis and budget adjustment
Regularly analyze and summarize the budget implementation of this department, and prepare the business analysis report of this department, find out the reasons for the difference between budget and implementation, and put forward suggestions for improvement.
In early June of each year, referring to the actual operation of the department in the first half of the year and the changes of the company and department plans, submit the application and suggestions for departmental budget adjustment in the second half of the year.
Refer to the actual business changes twice a year, and put forward the adjustment requirements and suggestions of relevant budget preparation methods and budget forms or budget management processes.
2.2 Inflow/outflow of forms or information
Inflow form or information
Industry data and analysis
Analysis of industry competitors
Macroeconomic indicators
Company operation statistics
Company's annual business plan
Minutes of budget start-up meeting
sales planning
Project investment budget
Project schedule budget
Department budget execution data
Department business statistics
Outflow form or information
Sales revenue and cost forecast report
Annual operation plan of the department
Number of users forecast table
Detailed budget of various business income
Other main business income budget
Other business revenue and expenditure budget
Summary of main business income
Summary of brand business income
Summary of user phone bill income
Sales project demand
Detailed budget of various operating expenses
Department expense budget summary table
Department budget preparation explanation report
Departmental one-time fixed assets procurement demand
Departmental human resource demand
Over-budget application approval form
Departmental budget execution analysis table
Department business analysis report
Suggestions on budget adjustment of this department
Suggestions on Adjusting Budget Management System
3. Sales Department
3. 1 Main responsibilities of budget management
(1) Budget Start
Before the annual budget is officially launched, make a preliminary forecast of the marketing expenses for the next year.
(2) Budget preparation and revision
Make a marketing plan before 5438+ 10 in the first ten days of June every year, and describe the company's main plans in market positioning, price, promotion, products and channels for the next year.
At the end of June every year, 5438+ 10, the annual operation plan of this department is made according to the company's operation plan, marketing plan, sales department's operation plan, the number of users and the forecast data of business income.
According to the operation plan of the department, the calculation method of the budget model and the relevant plan and forecast data provided by the sales department, the detailed expense budget (advertising and business promotion budget) of the department is compiled.
Before 1 1 month every year, complete and submit the annual human resources demand and one-time fixed assets purchase demand of the department.
Revise the annual business plan and budget plan of the department according to the resolutions of the general manager's office meeting (budget management committee), such as pre-approval, pre-release, official release, etc.
(3) Over-budget approval
According to the requirements of the examination and approval authority, the department examines and approves the in-budget and out-of-budget applications within the department.
Participate in the feasibility study, design and joint review of contracts of engineering projects related to marketing within the scope of examination and approval authority.
(4) Budget execution analysis and budget adjustment
Regularly analyze and summarize the budget implementation of this department, and prepare the business analysis report of this department, find out the reasons for the difference between budget and implementation, and put forward suggestions for improvement.
In early June of each year, referring to the actual operation of the department in the first half of the year and the changes of the company and department plans, submit the application and suggestions for departmental budget adjustment in the second half of the year.
Refer to the actual business changes twice a year, and put forward the adjustment requirements and suggestions of relevant budget preparation methods and budget forms or budget management processes.
3.2 Inflow/outflow of forms or information
Inflow form or information
Company strategic objectives
Company's annual business plan
Sales revenue and cost forecast report
Investment forecast report
Minutes of budget start-up meeting
Annual business plan of sales department
Detailed user quantity forecast of sales department
Detailed budget of business income of sales department
Sales department business income summary budget
Department budget execution data
Department business statistics
Outflow form or information
Marketing expense forecast report
sales planning
Annual operation plan of the department
Advertising and business promotion expenses budget
Budgeting report
Departmental one-time fixed assets procurement demand
Departmental human resource demand
Over-budget application approval form
Departmental budget execution analysis table
Department business analysis report
Suggestions on budget adjustment of this department
Suggestions on Adjusting Budget Management System
4. Fixed Assets Investment Department
4. 1 Main responsibilities of budget management
(1) Budget Start
Before the annual budget is officially launched, make a preliminary forecast of the company's capital investment expenditure for the next year.
(2) Budget preparation and revision
At the beginning of each year 10, prepare and adjust the annual business plan and investment arrangement of the department according to the company's annual business plan and various fixed assets demand information of each department.
According to the operation plan of this department and other relevant departments, the company's investment arrangement, the calculation method of budget model and other materials, prepare detailed engineering and investment budget tables, as well as other operating expenditure budget tables of this department.
Before 1 1 month every year, complete and submit the annual human resources demand and one-time fixed assets purchase demand of the department.
Submit the project arrangement and budget to the Administration Department, the Sales Department and the Network Department in the first ten days of June every year from 5438+065438+ 10 to provide supporting materials for the preparation of equipment maintenance budget and low-value consumables budget related to the project.
Revise the annual business plan and budget plan of the department according to the resolutions of the general manager's office meeting (budget management committee), such as pre-approval, pre-release, official release, etc.
(3) Over-budget approval
According to the requirements of the examination and approval authority, the department examines and approves the in-budget and out-of-budget applications within the department.
Organize and participate in the feasibility study joint review, design joint review and contract joint review of projects within the approval authority.
(4) Budget execution analysis and budget adjustment
Regularly analyze and summarize the budget implementation of this department, and prepare the business analysis report of this department, find out the reasons for the difference between budget and implementation, and put forward suggestions for improvement.
In early June of each year, referring to the actual operation of the department in the first half of the year and the changes of the company and department plans, submit the application and suggestions for departmental budget adjustment in the second half of the year.
Refer to the actual business changes twice a year, and put forward the adjustment requirements and suggestions of relevant budget preparation methods and budget forms or budget management processes.
4.2 Inflow/outflow of forms or information
Inflow form or information
Company strategic objectives
Sales revenue and cost forecast report
Investment forecast report
Company's annual business plan
Minutes of budget start-up meeting
Operation plan, marketing planning and sales project requirements of the sales department
Network project demand sheet
One-time fixed assets purchase demand of sales department and operation and maintenance department
Department budget execution data
Department business statistics
Outflow form or information
Investment forecast report
Annual operation plan of the department
(Preliminary) Investment Arrangement
Departmental one-time fixed assets procurement demand
Departmental human resource demand plan
One-time fixed assets purchase budget table (summarizing the one-time fixed assets purchase demand of sales department, operation and maintenance department and administration department)
Project investment budget table
Project schedule budget table
Budgeting report
Over-budget application approval form
Departmental budget execution analysis table
Department business analysis report
Suggestions on budget adjustment of this department
Suggestions on Adjusting Budget Management System
5. Operation and maintenance department
5. 1 Main responsibilities of budget management
(1) Budget Start
Before the annual budget is officially launched, make a preliminary forecast on the maintenance of the company's operating assets in the coming year.
(2) Budget preparation and revision
At the beginning of each year 10, prepare the annual business plan of the department according to the company's annual business plan and the minutes of the budget kick-off meeting.
At the end of each year 10, according to the development of various brands and businesses provided by the sales department, the company's network project requirements are put forward from a professional perspective.
According to the department's operation plan, calculation method of budget model and other relevant materials, prepare the company's operating asset maintenance budget and other operating expenditure budget tables of the department.
Before 1 1 month every year, complete and submit the annual human resources demand and one-time fixed assets purchase demand of the department.
Revise the annual business plan and budget plan of the department according to the resolutions of the general manager's office meeting (budget management committee), such as pre-approval, pre-release, official release, etc.
(3) Over-budget approval
According to the requirements of the examination and approval authority, the department examines and approves the in-budget and out-of-budget applications within the department.
Participate in the feasibility study joint review, design joint review and contract joint review of projects within the approval authority.