In the past 10 years, a number of typical cases of comprehensive budget management have emerged in China. Some of them have been listed in the case textbooks of major business schools, and some of them have been honored by industry associations and the media.
1. Shanghai Jinjiang Hotel's comprehensive budget
Budget management for enterprises is mostly started from the traditional Excel manual budget. But with the continuous expansion of the enterprise scale, the comprehensive budget is increasingly becoming an important tool to enhance the ability of enterprise control, Excel obviously can not meet this demand. 2007 Shanghai Jin Jiang International Hotel Group began to start the construction of a comprehensive budget management system. Today, the implementation of the comprehensive budget management system, in Jinjiang Hotel has played a huge role - to support the Jinjiang Hotel's economic hotels in the high-speed expansion of resource allocation, the direction of the group's management and control focused on
cost control; the realization of the group's financial accounting reporting platform and the integration of the application of the responsibility of the accounting reporting platform; It realizes the automated integration of budget management and accounting system, and timely tracking and analysis of budget implementation; standardizes and solidifies the rules and processes of budget preparation and analysis, and is compatible with the differences in budget management of the responsible subjects; realizes the overall application of budget preparation, rolling forecast, adjustment and dynamic analysis of implementation; and realizes controllable strategic expansion with the help of IT technology, and reduces the risks of the strategy implementation process. Risks.
2. Alipay's comprehensive budget
1) Through business combing, the financial planning work is systematized, standardized and refined.
2) Put the closed-loop management model of comprehensive budget forecast preparation, implementation control, analysis, improvement and enhancement, integrate Alipay's budget process and build a comprehensive budget system.
3) Improve the difficulties encountered in the manual budgeting process of Alipay in terms of data aggregation, personnel coordination, version control, and budget execution analysis, support multi-level, multi-dimensional and large-scale budgeting work, and improve the quality and efficiency of Alipay's budgeting.
4) Build a metadata and data architecture that adapts to the company's business architecture, and construct a flexible and open budget system to meet the needs of rapid business development and change.
5) Construct a budget system that conforms to Alibaba's information architecture planning, and realize the metadata*** enjoyment and unified management of the budget system and ERP, ABC and other information systems.
6) Realize the integration and unification of financial accounting data, business operation data and budget data related to FP&A, and complete the data *** enjoyment and transmission with the business system, so as to enable financial analysts to have a set of stable, high-quality data.
7) Provide various functions to flexibly build various types of analysis reports to improve the quality and efficiency of reports. The formation of a complete and specialized budget execution analysis system, improve the timeliness and accuracy of budget execution analysis, and provide the basis for Alipay's business management.
3. Comprehensive budget management of China Development and Investment Corporation
As an investment holding group, the business scope of China Development and Investment Corporation is complex and diversified, including three major types of business: industry, financial services, and state-owned asset management, involving coal, electricity, ports, machines and lightweights, fertilizers, funds, insurance, and many other business areas.
Based on the previous business design foundation, NDIC has designed three types of budget templates in the budget management system, namely, "group general, segment general, and segment specific", which are used to meet the budget management needs of the group headquarters, each segment, and within the segment respectively. The budget management starts from the business budget and covers the business budgets including investment, human resources, fixed assets management, capital budget, IT special expenditures and other business budgets in accordance with the management contents of the professional lines of business departments, and the business budgets form the financial budget indicators of the comprehensive budget management contents.
At the same time, the organizational structure system within the budget system covers the organizational levels from the Group's headquarters to the second-tier enterprises, as well as the third-tier investment enterprises, reflecting the comprehensiveness, all-employee and business-driven nature of budget management. In addition, on the basis of annual budgeting, NDIC continuously optimizes and improves the budget management system according to the depth of management needs, and successively realizes quarterly rolling forecasts, budget adjustments, integrated analysis of budgets and actual data, budget control, and budgeting data verification functions, forming a closed-loop budget management in the whole process.
Budget Interpretation
Comprehensive budget management is the management of plans in the market economy, is the enterprise's business objectives through the formal, quantitative form to express and summarize the specific steps to achieve business objectives.
★ The comprehensive budget can refine the enterprise development planning and annual business objectives, it is a series of quantitative planning arrangements for the overall business activities, is conducive to the realization of the above objectives of the monitoring and implementation;
★ Through the preparation of a comprehensive budget, will help the enterprise up and down the hierarchy, the department and the department of the mutual exchanges and communication between the departments to enhance mutual understanding, and deepen the understanding and acceptance of the departments and employees on the Understanding and recognition of business objectives;
★ Comprehensive budget management is the basis for the implementation of performance management, is the main basis for departmental and employee performance appraisal, through the combination of budget and performance management, so that the departmental and employee appraisal is truly "rules to follow, there is a law to follow";
★ Comprehensive budget management can be Rational allocation of resources, strengthen internal control, find the loopholes and deficiencies in management, reduce the risk of daily operations;
★ Comprehensive budgeting can be strengthened through the control of expenses, effectively reducing the company's operating costs. Open source and reduce expenditure to achieve the business objectives of the enterprise.
With the development of modern information technology, more and more companies have realized that having an effective information management system will play a great role in promoting the management level of enterprises. Informatization management system can enable enterprises to systematically and efficiently use a variety of information, so that the information within the enterprise to achieve the highest efficiency. From the informationization management system, it is possible to know what has happened in the past, what is being done now and what may happen in the future of the enterprise. By promoting comprehensive budget management, it can accelerate the comprehensive information management of the enterprise.
The implementation of comprehensive budget management can make the functions of senior managers gradually focus on the long-term planning of resources and performance assessment of subordinates, so that the hierarchy within the enterprise from "form" to "substance". Through the implementation of comprehensive budget management, you can clarify and quantify the company's business objectives, standardize the management control of the enterprise, the implementation of the responsibility of the responsibility center, clear responsibilities and powers at all levels, clear assessment basis for the success of the enterprise to provide a guarantee. It can be said that the process of comprehensive budget management is the process of strategic goal decomposition, implementation, control and realization.
The introduction of comprehensive budget management also means that the informationization and networking of enterprise management control, it is the entry point of enterprise management information networking.
Comprehensive budget management can enable enterprises to realize:
◇Simplify complex things: ◇Standardize simple things;
◇Formatize standard things; ◇Process form things;
◇Soften process things; ◇Graphicize software things;
Quantitative indexes, refined control, assessment, and open allocation of data. data, open distribution
Detailed into:
Budgeting; budget execution control; budget analysis, evaluation
Preparation procedure The decision-making body of an enterprise puts forward the overall goal of the enterprise for a certain period of time according to the long-term planning, using tools such as principal-volume-profit analysis and issuing planning targets; the most basic cost-control personnel make up their own budgets, so as to make the budgets more reliable and realistic; departments summarize departmental budgets; the most basic cost-control staff make up budgets on their own to make the budgets more reliable and practical. Each department summarizes the departmental budget, and initially coordinates the budget of the department, and compiles the budget of sales, production, finance, etc.; the budget committee examines and balances the budgets, and summarizes the total budget of the company; after the approval of the general manager, the deliberation body adopts or rejects the modification of the budget; the main budget indexes are reported to the board of directors or the higher competent unit, and are discussed and adopted or rejected for modification; and the approved budgets are sent out to each department to be implemented. The approved budget is issued to each department for implementation. Preparation Methods
By the different characteristics of its starting point, the method of preparing a comprehensive budget can be divided into incremental budget method and zero-based budget method.
The method of preparing a comprehensive budget can be divided into the fixed budget method and the flexible budget method according to the difference in the quantitative characteristics of the basis of its business volume.
By the different time characteristics of its budget period, the method of preparing a comprehensive budget can be divided into regular budget method and rolling budget method.
Pay attention to the problem
Unification of ideas
Unification of ideas, to create an internal environment of full participation Budget management is a kind of institutional arrangement involving the relationship of responsibility and rights at all levels of the enterprise organization, which requires the unification of the ideas and understanding of the whole enterprise, and close cooperation. First of all, budget management needs the attention and participation of senior leaders, otherwise, budget management is difficult to achieve the expected results. Secondly, budget management needs the close cooperation of all departments. Finally, the success of budget management needs to comprehensively improve the quality of financial personnel. Although we emphasize that budget management is not only the work of the financial sector, but the core of budget management is financial management, which not only requires financial personnel familiar with their own business, but also to be able to financial management and production, marketing management, so that the financial management of the real implementation of each specific link, which will inevitably put forward a higher demand for financial personnel.
Budget management
Compact groundwork, strict implementation of the budget requirements budget management is a huge systematic project, the groundwork for the budget management of the cost of information has an important impact. The basic work of budget management requirements include the establishment of job responsibility system, production technology standards and internal accounting system. Enterprise departments in the production, marketing and related activities, in strict accordance with the specific requirements of the budget, tracking the implementation of budget control management, timely reflection and supervision of the implementation of the budget.
Importance
Comprehensive budget is the goal
Comprehensive budget is the goal of the work of all departments at all levels. For example, the product sales target of the sales department, the production target of the production department, the cost control target of the management department, the financing target of the financial department will be determined in the budget.
Comprehensive budget is a tool for the coordination of the work of all departments at all levels
Because of the various departments at all levels of the enterprise due to their different responsibilities, the objectives often conflict with each other. The enterprise budget has a high degree of comprehensive ability, it represents the enterprise's overall optimal program, can make all levels of departmental work on the basis of coordination.
When the enterprise's operations continue to develop and grow, the comprehensive budget is the control standard of the work of all departments at all levels.
Because the budget is the basis for the control of economic activities and measure the rationality of the standard, when the actual state and the budget has a large difference, the enterprise can identify the reasons from the budget in order to quickly take measures to rationalize the arrangement of business activities.
When the operation of the enterprise has achieved significant results, the comprehensive budget has become the basis for the assessment of the work of various departments at all levels.
Managers as long as the budget as the basis for assessment, than the past performance as the basis for assessment of better results. Because the enterprise's operating conditions exceeded the previous year or the best level in history, can only show that there is progress, but can not show that this progress has reached the level that should be. Visible comprehensive budget in the business activities of the role played by the enterprise is very important, in order to operate to achieve better benefits must start from the comprehensive budget.