The traditional comprehensive budget is divorced from strategic management and can no longer adapt to the fierce competition in today's market. Enterprises attach great importance to strategic management. Starting with the process of introducing strategy into comprehensive budget management, this paper discusses how to establish a strategy-oriented comprehensive budget management on the basis of balanced scorecard.

First, comprehensive budget management and corporate strategy

(A) the meaning of comprehensive budget management

The comprehensive budget reflects the financial plan of all production and operation activities of the enterprise in a specific period in the future. It starts with sales forecast, and then forecasts production cost, cash receipts and payments, etc. On the basis of these forecasts, it prepares a set of projected financial statements and their schedules, such as projected balance sheet, projected profit and loss statement, etc. , reflecting the future financial situation and operating results of the enterprise. It integrates the enterprise's physical logistics, capital flow, information flow and human resource flow into a business index system that conforms to the maximization of enterprise profits. Therefore, from its birth to its widespread adoption, comprehensive budget management is essentially an enterprise management method and tool to achieve enterprise goals.

(B) the role of enterprise strategy in enterprise management

American scholars Thorne and House spent seven years investigating the application of strategic management in six large and medium-sized enterprises in different industries 18. Through investigation, it is found that the financial indicators such as return on investment, return on equity capital and earnings per share of enterprises with formal strategic planning are obviously better than those without formal strategic planning. At the same time, it is found that the economic benefits of enterprises after adopting formal strategic planning have been greatly improved compared with those in years without strategic planning, which shows the important role of enterprise strategy in enterprise management. Strategic management also plays a very important role in the implementation of enterprises in China, which is embodied in the following four aspects: first, the application of strategic management plays an important role in adapting to the socialist market economic system and accelerating marketization; Second, strategic management plays an important role in the strategic adjustment of the economic structure of enterprises and the formation of a reasonable pattern of enterprises; Third, strategic management is the need to accelerate the improvement of the international competitiveness of enterprises; Fourthly, strategic management is also the need to adapt to the adjustment of global industrial structure and accelerate the cultivation of comparative advantages of China enterprises.

(C) the supporting role of comprehensive budget management in enterprise strategy

The supporting functions of comprehensive budget management to enterprise development strategy are as follows: first, strengthen the connection between enterprise daily activities and strategy; Second, emphasize the overall performance and enhance the ability of the budget system to deal with cross-departmental issues; Third, optimize the allocation of enterprise resources; Fourth, improve the participation of grass-roots managers and employees. It can be seen that the strategy-oriented comprehensive budget plays an important role in promoting strategic management and improving competitive advantage.

Second, the shortcomings of traditional comprehensive budget management

Prepare capital expenditure budget and operating budget according to long-term sales forecast or profit target. The operating budget starts from the sales budget and is prepared according to the principle of fixed production by sales, and then the financial budget is prepared according to the capital expenditure budget and the operating budget. The traditional comprehensive budget ignores the existence of strategy. It assumes that enterprises will continue to produce the original products in the future, and the sales of future products are predictable. Prepare capital expenditure budget, operating budget and financial budget according to sales forecast or profit target. This is obviously based on the premise that the external environment of the enterprise is relatively stable, the market competition is not very fierce, and the enterprise simply aims at maximizing profits. Now enterprises attach great importance to competitive advantage, and this premise assumption has lost its foundation.

The third is the progress of introducing strategy into comprehensive budget management.

First of all, the introduction of strategic budget has changed the original positioning of traditional budget. Budget is no longer just a management control system, but is repositioned as a strategic implementation system, which is essentially a management activity to allocate enterprise resources to achieve enterprise strategic goals.

Secondly, in terms of budget content, the strategic budget makes the budget content richer and more comprehensive. The strategic budget can be extended to include finance, market, internal operation and learning and growth.

Finally, from the budgeting procedure, starting from the strategic budget, the strategic budget is considered first, and then the operating budget is considered, which improves the traditional budgeting procedure and ensures the strategic priority in the budgeting process.

Fourth, build a strategic-oriented comprehensive budget management system.

(A) the relationship between strategic management and comprehensive budget management

Strategic management is the starting point and direction of comprehensive budget management. Enterprise strategy determines the orientation of comprehensive budget management, which requires enterprises to choose their own budget management mode according to their own strategy, the development cycle and the market environment. For example, enterprises in the innovation period and growth period generally choose the scale-oriented budget management model, because their strategy in a certain period is to increase market share and expand the company's scale; Mature enterprises should choose revenue-oriented budget management mode in the case of relatively limited development space, and increase profits by reducing costs.

(B) strategy and comprehensive budget management linked to the "way."

1. Business organization process reengineering

The flat organizational structure centered on "activity" or "process" can adapt to the changes of customer needs and optimize the internal value chain of enterprises, thus reducing management costs and improving management efficiency. Facing the change of organizational structure, the budget management system should also be reformed accordingly, and the budget management system should be constructed by adopting process-oriented and activity-based budget execution units.

(1) Job Analysis and Establishment of Employment Center

Activity analysis is to evaluate the effectiveness and value-added of activities by identifying and measuring output, activities, resources and their interrelationships, so as to reorganize processes and value chains, improve the efficiency and value of activities and reduce costs. Enterprises should establish work centers on the basis of job analysis.

(2) Process analysis and establishment of process center

Process is a continuous process from beginning to end, which consists of many interrelated operations of the enterprise. Using the value chain as a tool, the processes can be divided into three categories: the core process to realize value appreciation, the enhancement process to improve the performance of the core process, and the support process that does not directly create value for customers but provides necessary support for other processes. The task of process analysis is to evaluate the process qualitatively and quantitatively by using process-related analysis methods, on this basis, identify the core business processes that can create economic benefits for enterprises to the greatest extent, organize business work according to the optimized core processes, simplify the processes of merging non-value-added parts, and establish process centers according to customer needs.

(3) Establish a budget management organization

In order to decompose strategic objectives into operation centers and process centers, and solve the problem of congenital lack of paths in the process of transforming strategy into budget, a budget management organization should be established, and a budget committee composed of board members, financial leaders and leaders of relevant departments should be established. The Budget Committee shall decompose and summarize the budget indicators according to the responsibilities of each operation center and process center. While defining the objectives and responsibilities of each center, we should give each center corresponding power to make it equal.

2. Based on the balanced scorecard

Kaplan and Norton(2008) proposed to use strategic map to plan strategy, use balanced scorecard to organize cooperation, and use budget to plan operation.

The balanced scorecard focuses on the strategic objectives of the enterprise, starting from four angles: finance, customers, internal operation process, learning and growth. From the financial point of view, the balanced scorecard retains financial indicators, which generally involve profitability, such as operating income, rate of return or economic added value. From the customer's point of view, managers are required to turn the statement of customer service into specific evaluation indicators, which should reflect various factors that are really related to customers. From the customer's point of view, market share, customer satisfaction, customer profitability and other indicators can generally be selected for evaluation. From the perspective of internal operation process, innovation ability, operation ability level and after-sales service level are mainly selected for evaluation. From the perspective of innovation and learning, we mainly consider the infrastructure that enterprises must build in order to create long-term growth and improvement. The learning and growth process of an enterprise includes three aspects: personnel, information system and enterprise process, among which the evaluation indicators of personnel mainly include employee satisfaction, employee stability and innovation.