On the Enterprise Group budget system and evaluation system

Transfer control of state-owned operator hand industry segments such as corporate management, of how to pass a short growth of enterprises through debt relief industry, restructuring of state-owned enterprises to ensure achievement of the objectives of establishing a modern enterprise system today face new challenges, this paper several aspects made a positive study, in order to achieve consensus.

Modern enterprise system, the need for budget system established under
(A) the establishment of modern enterprise system is the inevitable requirement of market economy.

The so-called enterprise budget, many people believe that the planned economy era, not suited to a market economy requires the Development of enterprises. In fact the contrary, the science budget management is the modern enterprise edge to succeed, the success of the Western experience of many excellent companies have proved this point.

China's enterprise reform has gone through the expansion of enterprise autonomy, and paid lump sum profit, profit delivery and the contract system in four stages. These reforms, once a certain vitality to the enterprise, managers and contractors to mobilize the enthusiasm of employees. But ten years of reform is still within the framework of the old system failed to change the traditional ownership model, not the expected results.

Third Plenary Session of the Fourteenth Party by the <"On the establishment of a socialist market Economic system, the decision of a number of issues>> proposed to establish clear property rights, accountability and separation of enterprise and scientific management of modern enterprise system. Theory of modern enterprise system The proposal, indicating the direction of the state-owned enterprise reform, enterprise reform ideas for the strategic shift in thinking provides a theoretical basis, but also changes in the Reform of state-owned enterprises inevitable choice.

The core features of the modern enterprise system is the business owners, including national funders, including the formation of all the corporate property Investment: the kinds of property upon Investment enterprises, then separated with the owners, and become full legal possession of the property once owned corporate property company will be entitled to civil rights and bear civil liability legal entity, with a complete operational autonomy, established by Law is the legal rights and responsibilities of any government department shall not be infringed. property rights and rights and responsibilities as legal constraints, the government and enterprises relations into independent management companies, government management of government functions according to Law one service, the second is supervision. that the Government improve the infrastructure through the construction, develop the market system, the establishment of a social security system for enterprises to create a good Development environment, the Government through the Development of and implementation of macro-control policies, adjust and optimize industrial structure, so that the effective allocation of social resources, through a sound legal system, supervise market operations, maintenance and equal competition.

Thus, the establishment of modern enterprise system is the establishment of a socialist market Economic system, a necessary requirement. Management Science is establishing a modern enterprise system, enterprise groups, the important parts. Modern enterprise system is based on socialized production and the socialist market economy to follow funding by ownership, the corporate financial principles, and established a set of enterprise property right system, accountability, oversight systems and internal business management system. It is an enterprise system model is a micro-Economic system.

Scientific management is an important condition for establishing a modern enterprise. I believe that the establishment of the socialist market economy, the formation of the national macro-control system, the state management function directly through the plan will gradually disappear. However, the function of the macroEconomic program and to reduce does not mean that internal management can be disorderly, unplanned. On the contrary, the modern enterprise system has the foreign experience shows that the face of relentless market, enterprise and scientific management is based on an orderly, planned more strong operational control mechanism, including an effective budget system.

(C) an effective scientific management of enterprise groups is to create the budget system
Scale modern enterprise group expanded rapidly, on the one hand effectively improve the competitiveness of enterprises, but on the other hand to enable enterprises to manage increasingly complex internal management. Traditional centralized management decision-making because of its focus, the resilience of poor and can not meet the rapidly changes in market demand, which requires the establishment of a budget system and the responsibility to control the responsibility of the combination of the budget system for enterprise groups to adapt to the rapid Development of international Economic and business competition becomes more intense, there must be long-term strategic goals and short-term business objectives, and use measured in the form of money involved in the decision-making target allocation of economic resources to plan in the form of concrete, the system reflected the preparation of the budget to ensure that decisions to determine the optimal program are implemented in practical work, the Executive . the budget is a concrete decision. enterprise group should prepare a comprehensive budget for the premise of a clear business objectives, and holding management to decentralized decision-making power of the model will be divided, and through the appropriate authority, the fiduciary requirements of different business management or the manager in preparing the budget for comprehensive and complete, and practical feasibility of adoption of the budget to reflect the centralization of decentralization between the parent company, subsidiaries of the budget approved by the Board of Directors issued a group of companies, the operators within the approved budget can be fully the exercise of operational autonomy, to avoid the chaos of a place, a grasp on the death of contradictions. through a comprehensive budget can also monitor the quality of the assets run into prior examination by the ex post control to achieve the subsidiaries, joint stock companies, branches of the dynamic management of key economic activities, and ultimately increase the value of capital
Enterprise Group means a budget system
Budget for the duration of its budget into long-term and short-term budget. The nature of long-term budget is a planning budget. Short-term budget is the overall budget, also known as the total budget, on the enterprises in the period of time (generally not exceeding one year or a business cycle) operation of financial and other aspects of the overall budget.

A budget system should follow the principle. Objectives of the principle of consistency: the preparation of the budget is based on the premise of a clear business objective, so the budget system in a variety of budgets should closely focus on the goal to determine
Incentive principles: preparation of the budget should be positive, reliable, leaving room for. Not to budget targets set too low or too high to be able to effectively mobilize the enthusiasm of the staff.

Controllability principle: the budget implementation process, to compare the actual and budget, revealed differences in responsibility can be assessed by the relevant department or the officer's work performance, which must be controllable in principle. Importance of the principle: involved in the operational budget to many things, the business objectives with little effect on the Group's budget should be simplified. budget management organization and competence.

Budget Committee established within the Enterprise Group, Budget Committee under the Budget. Budget Committee, chaired by the Chairman, Secretary General, General Manager, Chief Accountant, Finance, General Management, Planning and Development Department of the relevant senior staff and two to three economists or accountants as members.

Budget Working Group in the Ministry of Finance, is the Budget Committee, the daily offices, its main responsibilities are: (1) of the Budget Committee and by the Budget Committee is responsible for the leadership, (2) dealing with budget preparation, modification, approval, and other daily affairs issued (3) regularly informed of the budget implementation to the relevant departments, (4) regularly provided to the Budget Committee report on budget implementation and analysis. budgeted mainly for enterprises operating budget, Investment budget, asset stock adjustment Investment in new product development budget for science and technology budget profit budget and cash flow budget.

1, the operating budget. Operating budget is the starting point and the other budget prepared on the basis, which reflects the scale of production and management group of companies, market share and operating conditions of the situation.

Operating budgets many things. Such as sales budget, production cost budget and so on. Production cost estimate is based on the volume of business happens to be prepared. But in the actual business process, the company's business volume is not static. This requires the use of flexible budgets preparation methods.

Flexible budgeting options and determine the first measurement of a variety of business activities, like the production, direct labor hours, machine hours, etc., and forecast to determine the various operations that can be achieved, then move the volume of business, then the cost of state and business dependencies between the amount of, all the production costs into variable costs and fixed costs, variable costs per unit cost budgeting and control, the total fixed costs by the budget and control. budget and business behavior based on cost calculation to determine the corresponding The cash flow is also so presume. The basic budget model are as follows:
Sales revenue estimates for a projected unit sales × cost price of the fixed cost budget + budget = variable cost per unit volume x profit budget = budget projected unit sales volume × price of one (the fixed cost of a change in sales volume × unit cost) changes in half costs, making the cost of conversion, there are two treatment methods, one is a certain way, usually works Law, accounting, high-low method, scatter plot and regression straight-line method so the semi-variable cost into variable and fixed the cost of two parts, and then the preparation of flexibility in the budget based on cost characteristics, another approach is to directly under the semi-variable costs and the relationship between the volume of business were to determine the level of each traffic should occur on the amount of semi-variable cost.

2, the Investment budget. Investment budget and operating budget is directly related to the budget. Because of the Investment will have outputs, such as: corporate group sales revenue of 96 planning to achieve 10 billion yuan, this is not achieved through natural growth can be inputs to be arrogant. Ge statistics by a real estate development business construction industry, the current good input-output ratio is 1:5, at least 1.5 billion people to vote.

Group of companies the Investment budget is the embodiment of long-term Investment planning. From a business perspective, the Investment can be divided into two kinds of tactical and strategic investment is designed to change the former status quo or short-term profit enterprise level without involving the company's future and destiny investment projects, such as to reduce product costs, improve product quality and investment are all tactical investments, such investments generally involve small amounts, and the uncertainties faced by small and low risk make it. The latter refers to the affect m scale of development and not investment in production capacity. Roundworm run joint ventures, purchase a large number of companies and stocks. The large amount of investment, risk dogs, such as self Shen won the company's financial difficulties may arise. So be particularly careful on strategic investment, business investment is the focus of the budget.

3, the asset stock adjustment budget. Adjustment of asset stocks and investment budget, the budget is directly related to fluorescence of the budget because the investment amount of money involved is huge. Groups or companies with normal operations of the funds required a contradiction. But a significant development and investment must have the appropriate person, in the recent monetary tightening, higher average interest rate of the capital market after the restructuring of enterprises of both groups is investment in kind or monetary investment, much of the dumb sub-sources is a stock adjustment. through a Tong, make an inventory of intangible assets, to achieve the realization of optimal allocation of resources, greater investment returns
4, scientific Research, technology, new product development investment budget. Scientific Research, technology, investment in new product development investment budget 『Chen regarded as supplementary. This is mainly from the enterprise group to consider development potential. As a scientific advances in commodity markets increased competition, product life cycles are getting shorter. Optical development of enterprise groups have hardware 2 "/ * Shanghai Commercial (owned,) input does not work, also need to have software (scientific, technical, new product development) package. only continue to introduce high-tech and high added value products in order to enable the Group to play the advantages of scale, competition in the market in an invincible position. budget including sources of funding, the initial inputs, is expected to total investment and the expected proceeds .

5, the profit budget. Profit budget is cost-effective budget. Profits of all businesses in the above budget is prepared on the basis of the budget. Left the operating budget, profit estimate to be a forest without trees, without water, lost Lai the basis for compiling. profit is the Group to pursue the most fundamental goal, but also after the Group made certain economic benefits to self source of accumulation for reinvestment.

Involved in budgeting in the profit to sales expense budget and financial costs, administrative expenses budget. Sales budget of the previous year in cost of sales occur on the basis of the amount of sales targets for the year, sales location, sales and marketing organization degree of the scale, the budget project to adopt a flexible budget model sold by a certain preparation. financial costs can be cash flow budget gap, the total amount of funding required and the cost of financing the budget.

6, the cash flow budget. Cash flow budget is the Group's central financial budget system of the budget. Cash flow balance is the key to all business budgets. No funds as a guarantee, all budgets are empty.

All business cash flow budget is the amount of cash income and expenditure budget summary, a comprehensive reflection of the company's expected cash flow during the budget situation, which not only determines the amount of required capital, but also determines the amount of corporate funding and a certain period fund-raising time. Links to Research Papers Download http://www.hi138.com preparing cash flow budgets are 3 main methods:
Cash receipts and payments method. Also known as cash budget "direct the preparation of Law", which refers to the various economic activities during the budget period by actual cash basis to prepare the cash budget.

Adjustment Act of net profit or loss. Also known as the cash budget, "then asked the preparation method. It is based on the budget income statement prepared in accrual and cash to determine the after-tax profits for the starting point for budget, adjusted by the processing of lotus pen items of profit and loss and cash balance transactions to the current period, adjusted net cash net income for the current method.

Estimated balance sheet approach. This method is to use basic accounting balance sheet equation (Assets = Liabilities an ownership interest) projected corporate cash balance approach a certain period.

Enterprise groups and the control of budget implementation
Responsible for preparation of the budget and the Budget Committee reviewed the budget, the Board approved the budget process is the responsibility of all sectors of economic activities in the prior audit, inspection and supervision to ensure that all responsible units to accomplish their goal. Budget formally approved by the Board of Directors issued, the responsible unit should be strictly in accordance with budget implementation and control of the business activities as a group basis.

Completion of the financial sector accounted for the budget deal. Accounting method can set the daily registration books, at the end of the completion of calculating the indicator summary, or only at the end of the original data directly from the completion of summary to calculate the index. The responsible departments in the implementation of the budget process the financial sector should be based on information and data on their operations and deviations from the budget and the reasons for the differences revealed daily, and take measures to improve, to ensure that budget goals.

In the budget implementation process, due to special circumstances need to change the budget or the target amount by the budget department of the adjustment and under special circumstances, and submit the budget office to verify, and then approved by the Office of the Budget Committee report, major changes must write a detailed report on the budget reported to the Board for approval. the responsibility of departments not entitled to arbitrarily adjust the budget. budget adjustments can be arranged once a year, usually scheduled in July.

Budget performance evaluation and assessment
The role of performance evaluation budget.

Enterprise Group is not a traditional preparation of the budget to control spending on tools, but the resources to get the best group of companies productivity and profitability in a way. The plan presented by the number of budget and actual operating results compared to reveal differences , for appraisal of the Group's subsidiaries, branches and head office functions of the operating performance, but also to operate more efficiently for the future to provide decision-making.

Budget performance assessment and evaluation indicators set.

1, the cost center's assessment and evaluation indicators of the amount of available budget and budget cost difference between the cost rate, calculated as follows: the amount of the estimated cost difference between the actual cost of a budget cost estimate of a cost difference between the estimated cost rate for the amount of the estimated cost × 1O0 ÷
2, the profit center of the assessment and evaluation indicators of enterprise groups to achieve the objective to ensure the Group's total profits, according to the average total funding required to achieve target profit margin target to measure the profit of the responsibility system of units is reasonable, the formula: The average profit margin of a group of funds Group target profit ÷ total capital × 100 objectives identified and included in the profit after profit budget, we can all profit centers, according to the profits of the actual implementation to assess its operating performance. evaluation indicators and is calculated as follows: estimated percentage of completion of a practical realization of profit ÷ budget amount of profits profits profits of a few × 100 exceeded the profits of a number of practical implementation of a budget for profit
3, the average unit of investment responsibility assessment index
(1) Investment Evaluation indexes for investment in the responsible units within the Group
A, benefits and costs of investment projects in the estimates, decision makers should be based on "cost-benefit" principle of the investment project evaluation.

B, marginal efficiency of capital, the so-called marginal efficiency of capital, is the expected return on investment that can make the present value of capital spending is just equal to the discount rate. This requires planning for investment, its marginal revenue equals marginal cost should
(2) evaluation of operational performance indicators applied to subsidiaries
A, ROI is the use of the relationship between profits and investment capital to measure units of the responsible enterprise groups in order to complete some of the profits on invested capital limits the ability of the highest. Can often calculated in two ways: Return on total assets (net income + interest expense) ÷ total assets × 100 ÷ net capital return rate for equity × 100.

B, the remaining profits. As the investment environment is poor or the more intense competition, investment profit rate may be low investment unit, can be another indicator of the "surplus profit" to assess, that is, as long as the investments made in units greater than the net cost of capital or a minimum return on investment companies can be.

Budget performance assessment and evaluation of information sources
(-) Economic information and accounting records
1, establish and perfect the original documents, is to design the format and content of the original records, fill out the provisions of the original certificate and delivery and so on. The original certificate of registration and use of basic requirements must be followed the following points: authenticity, accuracy, timeliness .

2, accounting is the primary method of corporate financial accounting, the basis for evaluate the performance. It accounted for the following major elements:
(1) Fixed assets accounting. (2) materials accounting. (3) labor and wages accounting. (4) the production cost and product cost accounting. (5) in bank borrowings and settlement of payments accounting (6) finished , accounting for sales and profits. (7) to prepare financial accounting statements
(B) the financial statements and performance reports
1, performance assessment and evaluation of accounting statements is the main source of information
Foreign companies to send financial statements compiled, the provisions of a unified Ministry of Finance. According to the provisions of the financial statements of industrial enterprises were the main table with three and four Schedules.

Three main tables are: (1) balance sheet, (2) income and profit distribution table, (3) cash flow statement. In order to evaluate the performance of a more detailed analysis of the data, balance sheet and income statement are Schedule.

Schedule four were (1) should be handed over, should make up for money table, (2) production costs, expenses and operating income statement, (3) main business revenue and expenditure schedules, (4) key indicators table.

2, the performance report
In order to meet the enterprise production and management within the Group to strengthen the performance test of Eucalyptus, production and management for the future to make the right decisions, you need to prepare an internal performance report. Enterprise Group's internal performance reports, based on the Group's internal business management systems and requirements establishment.

Performance of the composition of the contents of the report must report their responsibility or budget targets and actual implementation and resulting differences, they all self-control responsibility center, and under the responsibility of the upper units of the responsible units in addition to the control should be based on the principle of major importance Further differences in the quantitative analysis and qualitative analysis. quantitative analysis to determine differences in the occurrence of the main level, qualitative analysis is to analyze the production of the original solid determine its normal or not, and determine the responsibility to evaluate the job performance. Links to Research Papers Download Center http://www.hi138.com