Comprehensive Budget Management Is Not Just A Budget.

In order to complete the new three boards listing or listing, enterprises need to prepare for internal norms and so on, and comprehensive budget management is an indispensable part.

For large enterprises, the budgeting of most companies will last for more than a month, and almost all departments will participate.

What kind of role does the budget made by material resources play in the company's operation? Platinum's financial training will thoroughly analyze the supporting role of the comprehensive budget management to the business operation through the case, and make clear the value of the budget work.

case

A large multinational company entered China in 1997, and the whole company looked busy. When it first entered the Chinese market, it looked very profitable.

But when the new chief financial officer came to the enterprise in 2010, he found that the actual results of the company's books were shocking. The initial investment of $30 million in capital was all about creditor's rights and expenses. A company as good as the outside world actually saw a huge loss.

The reason is that the company has never budgeted since entering China, so no one knows how much money has been spent, and no one wants to do what these things bring to the company, how to spend the capital, how to spend it, and how to spend it, whether the cost is real or not, and it can bring rewards to the company. How did it cause debts outside? It seems that everyone is busy with these problems, which is precisely the core problem in the management of enterprises.

Therefore, in order to change the status quo, the chief financial officer strongly recommended the introduction of the enterprise's financial budget management. By introducing budget management, the business activities of the enterprise were basically incorporated into the implementation plan, and the assets and profits situation gradually improved.

The next year's loss has dropped from nearly 2 hundred million to 50 million yuan, which has also been recognized and appreciated by the group.

What are the aspects of overall budget management and control and how to create value for enterprises?

To create value.

The question of the business plan is: what to do in the future; who will do it in the future; when to do it in the future; how to do it in the future; and how to do it in the future.

The budget is the performance of the business plan according to the amount of money, which is used to allocate resources such as people, money and goods to achieve the strategic objectives of the enterprise, monitor the implementation progress of the strategic objectives, control expenses, and predict the realization of the cash flow and business profits of the enterprises.

By implementing the business plan and rationally distributing the existing resources of the enterprise, the budget will be able to solve how much money has been spent.

To solve these problems, the company can keep away from financial risks and business risks.

Platinum summed up the key role of the budget as follows: planning the future, refining and quantifying the strategic objectives of enterprises, promoting internal communication and collaboration, promoting communication and collaboration among departments, performance appraisal, evaluating the performance of various departments, controlling and supervising, evidence-based supervision of the performance of various departments, resource integration, optimizing the allocation of resources of enterprises, and promoting the maximization of interests.

How do you do it?

The completion of the comprehensive budget is to overcome three major difficulties:

(1) the senior leaders do not attach enough importance to the whole staff, and the budget system is not perfect.

(2) the budgetary objectives are not in harmony with the strategic objectives of enterprises, and the methods of target prediction are unscientific and arbitrary.

(3) lack of basic data, inadequate preparation, unreasonable compilation methods, and poor communication and coordination between departments.

It should be noted that it is necessary to consider who is responsible for providing figures in budgeting.

The principle is to make professional people do professional things.

For example, the fixed assets budget, the provision of depreciation and amortization by the business department is not appropriate.

And the purchase and acceptance plan provided by the business department, and the depreciation and amortization calculated by the financial department, will make the figures more professional and accurate.

The specific way is: the finance department provides the detailed list of the existing fixed assets to the Department that uses the assets, uses the Department to carry on the inspection to the detailed list equipment, then fill in the processing situation, for example scrap, sells, the investment and so on plans.

If new equipment is needed, the Department will fill in the report in accordance with the format and provide the new basis for explanation, and then purchase it after approval.

However, some departments failed to purchase equipment in the fixed asset budget period due to insufficient estimation and other reasons.

Taking into account the seriousness and timeliness of the budget, this situation is regarded as a failure of the fixed assets procurement budget plan. If it is to be purchased, it must be reported to leaders and submitted for application.

Use complex reporting mechanism to force departments to take seriously the budget work.