On the financial budget management role in the enterprise

Summary: financial budget management is an important strategic enterprise management mechanism, a correct understanding of the financial budget management in the enterprise role in the development of enterprises is very important to the article describes the financial budget of the meaning, characteristics and its important role in the enterprise.

Keywords: role of the financial budget

Financial budget is certainly a special budget period to reflect the company's future financial condition and operating costs are expected, and the value of cash payments and other indicators of the general term for a variety of budgets. Financial budget management is a business plan, coordinate, control, motivation, evaluation of production management and other functions of an integrated mechanism for implementing the principle of corporate strategy, is business-related investment and financing activities, business activities and financial activities of the future situation is expected to manage and control the behavior and institutional arrangements.


First, the characteristics of corporate financial budget management

(A) strategic
Financial budget management is the strategic features: the building must be oriented corporate strategy, in line with the strategic requirements of the financial budget management can play a full range of strategic business development support role is the strategic objectives of the specific implementation plan.


(B) systematic
Concrete can be divided into two vertical and horizontal: vertical systematic means budget preparation, execution control, evaluation and reward the links together to form a complete system, upper and lower links are closely linked together to form a rigid budget, lateral refers to the various systemic department of job content are interrelated, a department's budget target is not complete, it will affect other departments, budget execution, must be the right department in accordance with the provisions of the authority for approval.


(C) comprehensive
Embodied as full of, full and round. Full of financial budget management is involved in each department, requires full participation and co-complete, any part of the problem will affect the overall efficiency of the whole refers to the budget management activities from the preparation, execution control, assessment analysis, performance evaluation and reward and punishment are to penetrate the enterprise business activities in every aspect of the performance of the whole process of budget management, budget management, including a full range refers to the operating budget, capital budget, budget and funding all aspects of financial budget budget.


Second, the financial budget management role in the enterprise

(A) the benefit of all functions of the coherence
Various functional departments within the enterprise must be coordinated in order to maximize enterprise budget. Because of the various functional departments with different responsibilities, often conflict with each phenomenon. The traditional management model is one of the major defects divided by functional sector management, the kinds of lack of integration between management functions, which based the disorder.


(B) help strengthen the internal control
Once a budget business, it entered the implementation phase, the focus on management control into the process of trying to make economic activities according to plan, outside the enterprise environment is constantly changing, there is bound to be biased and budget implementation, At this point the budget and the implementation of the comparison and analysis for the business to provide an effective means of monitoring the budget targets to provide a standard control for the enterprise, what the money is spent and what money is not spent. enterprise that is then a budget, it is necessary to achieve the maximum, not a mere formality, many domestic enterprises are very casual attitude on the budget, no budget is changed, changed beyond recognition table the final budget, the budget did not play its due role, previous budget formulation will dry white, a waste of corporate resources and business-to-budget increase of randomness, because we know that a budget can also be changed, in fact, this is the company's internal control over poor performance, while the number of internal control good business, they can conduct business in strict accordance with the budget targets of internal control, real-time implementation of the budget situation appear deviation, it will also advance to set an upper limit can not exceed the budget management in the internal control play an increasingly central role As the well-known management expert David Oliver said, the overall budget management is one of the few companies able to integrate all the key issues in a system into the management control methods. Links to free download Center http://www.hi138.com (c) is conducive to performance appraisal
Employee performance appraisal is an important indicator of pay promotion, performance evaluation indicators in the formulation process, the first strategic goal should be standing layers of transfer and decomposition, so that each job is assigned the business and strategic responsibilities, each employee assume their job responsibilities. Performance management is an effective tool for the implementation of strategic objectives, performance management indicators should be broken down layer by layer around the strategic goals and strategic objectives should not be divorced from implementation, while the enterprise budget is the quantitative indicators of corporate strategic objectives, as as indicators of company performance evaluation can take up the role-oriented performance appraisal, and budget to the number of ways to show management standard, which itself has to assess, and thus can be judged according to budget implementation effectiveness analysis differences in improvements, while the performance indicators as indicators of performance evaluation, this time with the company's job performance compared to budget targets issued, then the target becomes relative number of indicators, the index is clearly the absolute number of relative number index more objectively reflect the contribution of employees of enterprises.


(D) help quantify the business goals of the various functional departments
Business enterprise of the budget formulation is the result of functional departments work together to finalize the budget is the various functional departments of the company's overall balance of results in various functional departments of the budget target is actually a decomposition of the overall goal of the enterprise budget, which reached a budget business based companies to achieve the functions of budget support for the premise of doing the budget you can quantify the various functions of the direction and goals, they can arrange their activities according to the budget. science budget management system contains strategic objectives and business management business ideas, is the highest authority on the future of a certain period of business ideas, business goals, business decision-making and financial responsibility of financial constraints the number of instructions based on the company's overall operational plan. there is no strategy-oriented budget management would be no soul.'s strategy is usually is based on internal and external environment of integrated systems analysis of future trends on the business made a long-term planning, that enterprise managers to achieve business goals, according to economic laws guiding the development and adoption of global policies and methods fully Budget management is the company's strategy as a starting point, by planning to guide the future development of the practice now, is the company's strategic objectives and to further quantify the specific implementation, which is more of an acceptable, achievable, verifiable and challenging characteristics. which plays a full range of corporate strategic support role.


III Conclusion

Only through the overall budget management with a comprehensive and profound understanding to the effective implementation of a comprehensive budget management, and ultimately making the implementation of corporate strategy and improve business performance tools to ensure the further implementation of corporate strategy, reduce business risk, improve business management efficiency and operational efficiency, maximize our enterprise value. Links to free download http://www.hi138.com