Comprehensive budget management is a brand-new management concept and the starting point for enterprises to realize scientific management and decision-making. Through the implementation of comprehensive budget management, the scientific decision-making level of enterprises can be improved, the risk prevention ability of enterprises can be enhanced, and the sustained, healthy and scientific development of enterprises can be guaranteed.
First, the preparation for the implementation of a comprehensive budget
First of all, we must obtain the support of the top management and the understanding of the employees. The general financial department is responsible for the daily budget management, but the budget is not just the business of the financial department. The comprehensive budget involves many departments such as production, operation and management. We should organize a budget kick-off meeting once a year and conduct special training to let employees know the role and significance of the budget, let the budget executive really participate in the budget preparation, and let the budget become the goal they strive to achieve in their work.
Secondly, improve the relevant system of budget management. According to the national laws and regulations on budget management, formulate comprehensive budget management measures and their implementation details, including organizational system, budget preparation system, budget execution control system, budget adjustment procedures, budget analysis system, budget assessment mechanism, etc. Budget management is related to the development cycle of enterprises, and the focus and direction of attention vary with the development cycle of enterprises. The opinions of various departments can be solicited, and a budget preparation report can be formed every year to specifically reflect the current situation and characteristics of budget management in that year, and a specific operation manual can be formed, that is, the principles, procedures, methods and time requirements of budget preparation can be clearly defined.
Then do the basic work of the budget. Budgeting requires at least 2-3 years of comparable data accumulation. The accuracy of various quota indicators, price data and information inside and outside the enterprise is closely related to budget preparation, implementation control and assessment. If the information data is inaccurate, the whole budget management will not work. What basic preparations do all departments need to make before implementing the comprehensive budget? The business nature of different enterprises will be different, but it generally includes:
1. The sales department should do a good job in analyzing the sales situation, market feedback, sales forecast, signing a big contract in the budget year, and the basic data of sales plan and sales expenses;
2. The production department completes the production situation and production capacity plan, basic cost data, labor productivity, etc.
3. The Equipment Department completes the overhaul, maintenance, update and purchase of the equipment;
4. The new personnel plan, performance appraisal and salary system adjustment formulated by the Human Resources Department according to the human demand and quality requirements reported by various departments;
5. The purchasing department analyzes raw material consumption, market supply analysis and forecast, supplier changes, etc.
6 financial statements and analysis reports of the financial department, budget target calculation scheme, draft investment and financing budget, fixed assets, accounts receivable and other information.
Finally, establish an organizational system and establish a budget management Committee. The members of the Budget Management Committee include the person in charge of the company and the person in charge of each department, and are responsible for examining and approving the draft budget and the budget management system. An office under the Budget Committee is responsible for daily work, which is managed centrally according to the technical characteristics of various functional departments, ensuring the separation of incompatible responsibilities such as budget preparation, budget review, budget implementation and budget assessment, mobilizing the enthusiasm of all parties and ensuring the realization of the company's annual budget objectives.
Two. Budget and audit procedures and methods
1. Analyze the budget variance and define the reasons for the variance.
First of all, according to the comparison between the actual situation and the budget quota of last year, the centralized management department adopts various methods such as historical cost method, standard quota method or related index method, and evaluates the accuracy of budget quota formulation in combination with policy changes. Then comprehensively predict the actual completion of the previous year and analyze the budget differences, including the completion of budget indicators, the compliance of budget implementation, and the improvement points in budget implementation. If the budget difference has been formed, it is necessary to analyze and clarify the reasons for the difference, including the difference between macro policies and internal policies of the company; The influence difference of market environment changes, etc. , and analyze the budget differences to provide reference for future annual budget preparation.
2. Improve the compilation basis, strengthen audit and pay attention to key issues.
After the centralized management department completes the basic preparation of budget preparation, it forms various budget forms and then distributes them. Each budgeting department shall prepare the budget according to the requirements of the centralized management department and report it within the specified time.
Differentiate different projects and adopt different budgeting methods to improve the rationality of budgeting. For example, ① Fixed budget is applicable to fixed costs, such as depreciation of fixed assets and salary of managers. (2) flexible budget is applicable to variable cost items related to business volume, such as raw materials, auxiliary materials, piece-rate employee salaries, etc. ③ For controllable costs, zero-base budget should be adopted, instead of incremental budget, so as to avoid the compilation method of "base+growth". ④ Probability budget can be used for budget items that are difficult to accurately predict the changing trend, such as income, cost and capital budget related to new business development. ⑤ Special projects and major capital expenditures should be compiled in the form of project budget, and the influence of various factors should be comprehensively considered.
3. Budget review procedures
In the process of budget preparation and audit, various centralized management departments can reduce and delete some unnecessary budget items through various analysis dimensions such as comparative analysis of budget items, composition analysis, inter-departmental budget analysis and per capita index analysis. , so that the limited resources of enterprises can be used in the cutting edge and the rationality of budget preparation can be improved. Therefore, the workload is very large, and capable companies can promote the work objectives of comprehensive budget indicators, budget preparation, implementation, adjustment, analysis and assessment through information technology.
After the centralized management department conducts audit according to the division of responsibilities, the budget management office summarizes the results and submits them to the general manager's office of the company one by one according to departments and subsidiaries for research and audit, and formulates various budget indicators, which are submitted to the board of directors for deliberation and approval by the shareholders' meeting.
Three. Budget execution and change control
To implement comprehensive budget management, budget execution control is the most important. After the budget is approved by the management, through authorization, it can clearly reflect the rights of each budget execution unit, simplify procedures and improve efficiency, which is both decentralization and overall control. It is clearly required that all departments and subsidiaries carefully organize and implement the annual budget, and refine the annual financial budget indicators issued by decomposition to quarters, decompose the budget indicators layer by layer, and implement them to responsible departments and responsible persons, strengthen the cost awareness of all staff, and form a budget execution responsibility system.
Only when everyone and each responsible department are very clear about the significance and function of the goal and complete their respective responsibility goals can the overall goal of the enterprise be realized.
In the actual implementation of the budget, we should follow the principle of combining rigidity with flexibility. The budget is based on business, the budget figures are static, but the resources are mobile. In the process of budget implementation, adjustments and corrections are often needed for various reasons, including temporary additions outside the budget, inter-departmental transfers within the budget, intra-departmental transfers, and budget increases, decreases, changes and adjustments. The emphases of sales budget execution control, cost control, investment control and cash flow control are different, so as to reduce costs and prevent business risks.
Only when the budget seriously affects the budget implementation can the budget be changed or adjusted, which generally includes: the national tax-related policies and macro-control policies change, the enterprise should increase or decrease the business scope accordingly, and the economic environment changes; Organizational and strategic changes of enterprises; Matters that need to be changed in the opinion of the board of directors or the budget management committee; If one of the above conditions is met, the budget execution department shall apply to the centralized management department for examination and approval, distinguish the over-budget items from the off-budget items, and clarify the control points and approval process from the aspects of amount and nature, so as to make the control more standardized and flexible.
Give full play to the supervision function of the audit department, and bring the budget implementation, change and adjustment into the scope of internal audit. The Audit Department organizes an internal audit of the budget implementation of all departments and subsidiaries of the company every quarter to find and correct the problems existing in the budget implementation process, especially to supervise and manage the approval of projects that need to be adjusted and added during the budget implementation process. The audit opinions are used as the basis and reference for the company to prepare the budget for the next year and improve its internal management.
IV. Budget Analysis and Evaluation
Harvard Business Training "Communication is wealth." This is a simple and profound management concept. The most commonly used communication methods of budget execution include budget execution analysis report, budget execution monitoring and early warning, budget execution analysis meeting and so on.
Check the specific implementation of the sub-budget in time, find and solve the problems existing in the budget implementation process, grasp the main contradictions that lead to differences, carefully analyze the key problems and main factors that affect the completion of the budget objectives, and put forward corresponding countermeasures. Through comprehensive budget management, the implementation list and chart of budget items are compiled regularly, which directly reflects the influence of each cost item on the target cost and provides decision-making basis for strict and scientific cost control. Analyze the deviation between the budget and the actual situation, constantly strengthen the responsibility of the centralized budget management department, and ensure the realization of business objectives during the budget period.
Comprehensive budget evaluation is an effective tool for performance evaluation and incentive, and also a basic means for evaluating production and operation performance. The set evaluation index reflects the key points of enterprise management and control. For example, the set evaluation index of accounts receivable budget is to improve cash turnover rate, reduce loans and obtain maximum profits.
The results of budget assessment should arouse the enthusiasm of employees. If it is not set properly, it will easily lead to the disadvantages of artificial manipulation of indicators and division. How to set scientific budget assessment indicators is something that different enterprises should pay attention to in different periods. Establish scientific and quantitative performance appraisal standards, improve the fairness and objectivity of the assessment, and implement an assessment system that combines objective evaluation with supervisor evaluation for each responsible unit. Budget evaluation not only evaluates and summarizes the overall budget completion, but also corrects and analyzes the differences in the budget implementation process.
With the constant change of market environment, it is necessary to establish a budget organization system suitable for enterprise development, strengthen the concept of comprehensive budget management, select reasonable budget preparation tools and methods, strengthen process control, establish an effective communication mechanism, and avoid the distortion of budget assessment, thus ensuring the realization of enterprise strategic objectives.