Financial Controller Practice: The Type Of Comprehensive Budget Management Mode

Comprehensive budget management is connected to the market and internal enterprises. Under different market conditions, enterprises are in different stages of development, with different management priorities and different comprehensive budget management models.

Therefore, when designing a comprehensive budget management mode, enterprises should choose their own budget management mode according to their own environment and conditions, highlighting the key points of management in different periods.

The author thinks that it can be divided into five major budget management modes: capital expenditure budget management mode, sales based budget management mode, cost control budget management mode, cash flow budget management mode and target profit budget management mode.

In terms of management characteristics, the capital expenditure budget management mode is a large amount of cash invested in R & D, market research, fixed assets, net cash flow is negative, the success or failure of new business development and the size of future cash flow have greater uncertainty, facing more global brand network - large investment and business risks.

Generally speaking, the initial stage of the enterprise, the early stage of marketing, and the launching of the project are in the early stages of large-scale regional infrastructure construction.

In addition, for the early exploration and mining of mines, or before obtaining many certificates, they are all below the coordinate axes made by the cash flow statement, and have not reached the cash balance point.

From the perspective of capital budgeting management, the company enters the whole process of management from the perspective of capital input budgeting. The budget takes capital investment as the center, makes investment budgetary estimate actively, and uses financial decision making technology to carry out capital expenditure project evaluation, total investment budget of projects and total cash outflow budget.

Financing budgets, using the above budgets to monitor and manage the actual construction process, and compare the capital budgets to evaluate the actual expenditure effect of capital expenditure projects.

From the perspective of operating characteristics, capital expenditure budget business has gradually been accepted by the market, and the total demand for the market has increased linearly.

The core of management is to develop market potential through market and marketing, increase market share, and invest a lot of marketing cost.

The size of cash inflows is still uncertain and net cash flows are negative or at a low level.

The main contents of the capital budgeting management mode are market based, based on the target requirement of increasing market share and sales forecast.

We must adhere to the principle of "selling products according to production" and compile budgets for production, cost, cost and other functions.

Based on the budget of each function, compiling synthesis.

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From the perspective of budgetary mechanism, the management under this budget mode

As the center, the advantage is that the production and operation activities within the enterprise can be organized around the center of market demand, making the budget more objective and better able to play the role of the plan; the shortcoming is to overemphasize the objectivity of market demand, and to neglect the excavation of internal potential and to increase the conflict of interests between owners and managers.

From the perspective of operating characteristics, cost control budgeted market growth slowed down, and has a higher and stable share of sales.

In the case of relatively stable market, the size of earnings depends on the relatively controllable factor of cost. The cost management strategy affects the degree of realization of expected profit, and the net cash flow is positive and stable.

This is a relatively mature stage of enterprise development.

Many costs are supported by historical data, which can be used to evaluate many cost behaviors in the light of history.

However, due to many changes in cost and material, or some technological changes, it does not have reference.

Since the market price is basically stable, enterprises must dig up potential at cost if they want to get the desired return.

It is emphasized that cost management is the core and main line of enterprise management. Based on the expected revenue of enterprises, the total budget cost of enterprises is planned by using the globrand.com lattice of market price as the known variable. On the basis of total budgetary cost, it is decomposed to all responsible units or management departments involved in cost occurrence, and the budgetary cost of budgetary units is formed.

The target cost centered budget system is applicable to the long life cycle of products, and the product development is in a mature stage. The market demand is relatively stable, and the competitive advantage of enterprises mainly comes from lower cost.

General hydropower station operation, thermal power plant operation, per capita production capacity have very mature historical data to support, generally estimated to be fixed posts and fixed staff, eight or nine is not ten.