Enterprise's management activities through financial budget is not only a financial target control method, but also an effective means of target management in financial control and a strategic management mechanism with full participation. In order to control the market, realize the optimal allocation of enterprise resources, and save and utilize resources to the maximum extent, enterprises must provide real and effective information for enterprise decision makers through flexible, fast and accurate financial forecasting, and the proposal of financial budget undoubtedly provides a convenient way for enterprise management.
1, the connotation of financial budget
Financial budget is a series of budgets that specifically reflect the expected financial situation and operating results of an enterprise in a certain budget period in the future, as well as value indicators such as cash receipts and payments. It is a budget made by the top management of an enterprise around the goal of profit maximization, combined with the external market environment and the specific situation of the enterprise, based on the financial data and responsibility constraints of business decision-making and business goal planning in a certain period in the future, and through a series of scientific models and formulas.
As a part of an enterprise's overall budget, managing economic activities through financial budget is an effective management mechanism for modern enterprises to realize financial activities in a certain period of time by using modern management theories and methods, based on scientific management prediction and decision-making, and then centering on the strategic objectives of enterprises, taking the market as the guide and taking cash flow as the center. A good financial budget management mechanism can effectively avoid the risks of various financial activities and realize the rapid, healthy and good development of enterprises.
2, the necessity of financial budget
As mentioned above, financial budget is an important means of modern enterprise management and an important method of enterprise internal control. Through the comprehensive organization, planning and coordination of human, financial and material resources, the value of the enterprise is maximized. Especially the recent financial crisis has sounded the alarm for us. Reasonable and accurate financial forecast is very important for every enterprise.
(1) A good financial budget helps enterprises avoid financial risks.
In the current economic environment, the financial risks faced by enterprises mainly come from payment risks, and the relationship between the certainty of future cash flows and future debts due will be fully considered when preparing financial budgets. Therefore, making an accurate and reasonable budget plan to arrange the use of funds will help enterprises to fully avoid financial risks that may be encountered in the future.
(2) The financial budget is a good guarantee for the long-term strategy of the enterprise.
The preparation of enterprise financial budget is based on enterprise strategy and an expected management concept for the future of the enterprise. Therefore, financial budget is also an important part of enterprise strategic management, which can also be said to be the concretization of enterprise strategy. Financial budget without enterprise strategy can only be called short-term behavior of enterprises, and it can't help enterprises to enhance their competitive advantage in the market.
(3) Financial budget is also a bridge between market and enterprise.
Because the strategic decision of an enterprise is based on sufficient market research and forecast, an accurate financial budget can organically combine the market and the internal resources of the enterprise, and the enterprise can rationally allocate the internal resources of the enterprise on this basis, so as to meet the market demand to the maximum extent and achieve the purpose of obtaining the maximum benefits in the market for a long time.
3, the content of the enterprise financial budget
(1) Budget for daily business activities.
Mainly refers to the comprehensive budget of the daily business activities of enterprise groups and their operating subsidiaries, including operating activities budget, investment activities budget and financing activities budget. Specifically, the operating activity budget mainly includes the main business income budget, the main business cost budget, the accounts receivable and payable budget and the period expense budget. Investment budget mainly refers to the budgeting of investment activities of enterprises and their operating subsidiaries, including investment income budget, investment cost budget and risk budget, and can also be divided into short-term investment budget and long-term investment budget, domestic investment budget and foreign investment budget. The budget of fund-raising activities mainly refers to the budget of various expenses incurred in the process of fund-raising for enterprises.
(2) Financial status budget and operating status budget.
As we all know, the financial status budget and operating status budget of an enterprise are also the preparation of balance sheet budget and income statement budget, which are used to prepare the ending balance of assets and liabilities and the budget of operating profit and loss during the enterprise budget period. The preparation of balance sheet budget is based on the beginning of enterprise balance sheet. After fully considering the influence of relevant data of income statement budget and cash flow statement budget on assets, liabilities and owners' equity at the beginning of the period, the balance method commonly used in accounting is adopted for calculation, and the preparation method of income statement is similar. Both of them complement and restrict each other in compiling content and data application.
(3) Cash flow budget.
Cash flow budget is a rough estimate of the capital structure, flow direction and scale of daily activities such as business activities, investment and financing. And then make a detailed budget for the cash inflow, cash outflow and net cash flow of each activity, so as to provide sufficient financial guarantee for the enterprise to achieve the next business goal. Generally speaking, in the whole financial budget of an enterprise, cash flow budget should be the center, because cash flow is a data indicator that can fully reflect the purchasing power and payment ability of an enterprise, and it is the guarantee for the sustainable and healthy operation of an enterprise. At the same time, cash flow is also the biggest capital for enterprises to further expand their business space.
Second, the current domestic enterprises financial budget management problems in practice
With the rapid development of China's economy, the important role of financial budget management is gradually recognized by many enterprises, and more and more enterprises have formulated their own financial budget management systems. However, due to various reasons, there are still many problems in the process of implementing financial budget management in Chinese enterprises.
1, enterprise financial personnel only budget for the budget.
The competent departments of many enterprises lack a clear understanding of how the financial budget should operate and how to arrange and implement the financial budget of their own enterprises. At this stage, many enterprises have formulated a series of seemingly strict system documents related to the financial budget management of their own enterprises, just for the purpose of getting the approval of higher-level relevant departments and other units in management level. In fact, every enterprise should not only take financial budget as a part of its own management system to fill the gap in the enterprise system, but should take financial budget management as an effective auxiliary means to gradually realize the enterprise development strategy. What we should pay attention to is not whether the enterprise has formulated the financial budget management system, but whether the financial budget management has been effectively implemented and executed in the enterprise.
2, enterprises generally do not have a sound financial budget management organization and system.
In many enterprises that have implemented financial budget management, there is generally no special financial budget management organization, some enterprises are concurrently held by the financial department of the enterprise, and some enterprises even assume this responsibility by the planning department. There is no organizational guarantee for financial budget management, which often leads to some contradictions and conflicts in the daily work of enterprise financial budget management, and there is no authoritative organization for coordination and arbitration within the enterprise. In addition, the lack of a relatively perfect financial budget management system is also a common problem in many enterprises at this stage, which leads to many enterprises being too simple in preparing their financial budgets, making the management items of the financial budget system become nominal, and also making enterprise budget managers have no strict norms to follow, thus affecting the effective operation of the financial budget management mechanism and even losing its due role.
3. Many enterprises do not attach importance to the actual effectiveness of the budget.
There are many unhealthy phenomena in enterprises that have implemented financial budget management, such as focusing only on the planning, coordination and control functions of the budget itself, while ignoring the role of budget management in other aspects. In practical work, these bad phenomena are mainly manifested in the following relationships: the relationship between financial budget management and enterprise strategic management, the relationship between financial budget management and improving economic efficiency, the relationship between financial budget management and enterprise risk control, the relationship between financial budget management and enterprise performance evaluation, and the relationship between financial budget management and enterprise resource allocation.
4. Many enterprises think that financial budget management is a pure financial behavior.
Financial budget is an extension and development based on the annual revenue and expenditure budget formulated by the financial department, which makes many people think that budget is only a financial behavior, so the financial department of an enterprise should be fully responsible for formulating and controlling it. In fact, with the gradual strengthening of managers' planning in modern enterprise management, comprehensive financial budget has already developed into a comprehensive budget system integrating business budget, capital budget, profit budget, investment budget, salary expenditure budget and management expense budget. The role of financial department in budget preparation is only to provide principles and methods for various departments, and effectively summarize and analyze various budget data. Therefore, financial budget management is a comprehensive management behavior of enterprises, which should be organized and directed by the top management of the company, and specific departments such as business, investment, fund-raising and management are the main bodies of financial budget implementation. In other words, we can't regard the financial budget as a task that the financial department needs to complete independently.
Three, some suggestions on building a reasonable and effective enterprise financial budget management system
1, according to the development strategy formulated by the enterprise, determine the financial budget management objectives of the enterprise.
For enterprises, financial budget management is more about the future management and constraint of enterprises, so its goal should be based on the development strategy of enterprises. Financial budget without long-term development strategy consciousness can only be regarded as short-term behavior of enterprises, which will make enterprises lose the correct development direction and will not enhance their market competitive advantage. Therefore, the financial budget management process must focus on the formulation, implementation and control of enterprise strategy. The development strategic orientation and strategic objectives of an enterprise directly determine the choice of financial budget mode, the focus of budget and how to determine budget objectives. Only when the financial budget is positioned in this way, that is, closely linked with the strategic objectives of enterprises, will it have strong vitality. Therefore, in order to implement financial budget management, enterprises should first formulate their development strategies and determine their long-term and short-term goals according to their market environment, product market demand and existing resources, so as to accurately grasp the objectives and direction of financial budget management.
2. Improve the internal financial budget management system.
An effective financial budget management system within an enterprise is a condition to ensure the accurate implementation of the financial budget. Financial budget management system is the norm that all personnel involved in budget preparation must abide by, and it is the method and basis for enterprises to implement financial budget management. When an enterprise implements financial budget management, firstly, according to the guiding opinions formulated by the Ministry of Finance for the enterprise and the actual situation of the enterprise, a financial budget management system is formulated, and the objectives, principles, contents, management system, organizational structure, responsibilities, authorities, business processes and budget indicators are defined. Then, according to the requirements of the Financial Budget Management System, the workflow and content of budget preparation, approval, implementation, adjustment, monitoring, evaluation and assessment are formulated, so as to standardize, institutionalize and program the whole financial budget management process and ensure the effective operation of the financial budget mechanism.
3. Strengthen the internal financial control management of enterprises and refine various financial budget subjects.
Although most enterprises can carry out financial budget management, the promotion and final income of basic management at different levels are very different. The basis of enterprise financial budget is generally business budget and capital budget, and each business budget requires all kinds of businesses to be standardized and business processes to be scientific. Therefore, enterprises should strengthen their basic management from the aspects of production, sales and supply according to their own business characteristics and management requirements. In addition, it is necessary to refine all links and projects of financial budget management, and further clarify the relationship between responsibilities and rights of all kinds of personnel. At the same time, enterprises can take