Budgeting includes not only forecasting, but also skillfully handling all variables in a planned way, which determine the performance of the company in its efforts to achieve a favorable position in the future.
Decentralized budget structure
Budget (or profit plan) can be said to be the most widely controlled technology, because it concerns the whole organization, not just a few departments.
Budget is a quantitative plan, which helps to coordinate and control the acquisition, distribution and use of resources in a specific period. Budget can be regarded as integrating various interests that make up an organization into a plan agreed by all parties, and in the process of striving to achieve the goal, it shows that this plan is feasible. The budget planning and control work that runs through the formal organization regards the organization as a series of responsibility centers, and tries to distinguish one coefficient that measures performance from other coefficients that measure the impact of that performance.
Budgeting includes not only forecasting, but also skillfully handling all variables in a planned way, which determine the performance of the company in its efforts to achieve a favorable position in the future. If we want to balance the needs of each system according to the company's goals, we must make an agreed plan in a coordinated way. In the budget planning stage, every manager should consider the relationship between his responsibility center (department or subsystem) and other departments and the whole company. This practice will tend to reduce the prejudice between departments, reduce the emergence of departmental kingdoms, and reduce the shortcomings and outstanding communication problems in the organization. In addition, it encourages authoritative representatives by relying on the management of the exception principle.
Budget control system
Budget is divided into construction drawing design budget and construction budget. Capital construction project budget is the general name of estimation, budgetary estimate and budget.
After the plan is made, it provides a reference framework for evaluating future performance. There is no doubt that budget performance is a better benchmark than past performance. This is because of inefficiency and changing conditions that are usually hidden in past performance.
There are two basic forms of budget-long-term budget and short-term budget. The length of time clearly distinguishes the two, which raises a question, that is, budget users should be properly influenced by the regular accounting year and should adopt the most meaningful budget period for each company. For example, the life cycle of a product from the launch period to the elimination period, in many ways, is not so much a calendar period as a natural budget period, because it unites sales, production and financial planning. The choice of actual budget period largely depends on the company's ability to accurately forecast. A typical budget is prepared by year. However, due to reporting, scheduling and control, this time span is broken down into smaller time intervals (for example, in production and sales activities, the budget is compiled according to half a year, quarter, month or even weeks).
Britain is the first modern country to form a complete budget system. /kloc-at the beginning of the 0/3rd century, Britain's emerging bourgeoisie fought for finance from the feudal autocratic regime. At first, the focus was on the right to tax, and then it gradually shifted to the control of funds and the preparation of government financial balance sheets. 12 17 king John of England signed the magna carta, and the parliament representing the interests of the bourgeoisie gained the legislative power of taxation. Then it gained the power to control government expenditure, and the parliament finally controlled all the government's revenue and expenditure approval authority. In this way, the British government submits the budget and final accounts of government revenue and expenditure to parliament for approval every year, and Britain has established a budget system for compiling the list of national fiscal revenue and expenditure.
China's national budget system came into being in the late Qing Dynasty. In the thirty-third year of Guangxu (1907), the Charter of Clean-up Finance was promulgated, and it is planned that the Clean-up Finance Bureau will preside over the budget preparation. In the first month of Xuantong's second year (19 10), budget books and examples were promulgated, which stipulated the budget year, revenue and expenditure classification and accounting unit. In the second year in Xuan Tong, Xuantong's national budget for three years was tried out by Xuan Tong Branch.
China's socialist national budget originated in the revolutionary base areas. The Provisional Financial Regulations of Chinese Soviet issued by the Central Workers and Peasants Democratic Government 1937 is an important document for establishing the budget system. After the founding of People's Republic of China (PRC), in March of 1950, the State Council successively issued the Decision on Unifying the National Financial and Economic Work, the Decision on Unifying the Management of Fiscal Revenue and Expenditure in that Year and other relevant regulations, thus forming a unified national budget.