Comprehensive budget management is an important task of enterprise management, which can help enterprises achieve strategic goals, rationally allocate resources, and realize group control and forced management. The following is an in-depth discussion of these aspects.
01Strategy landing
It is easy for a company to formulate a strategy, but it is not easy to implement it. Improving budget management can help companies realize their strategies. The core goal of budget management is to assist in the implementation of corporate strategy, promote the development of the enterprise, and achieve success in the commercial battlefield. To achieve this goal, the middle and high-level managers within the company must have a thorough understanding of the company's strategy, and all departments must form a consensus on the strategy in order to effectively identify the "must-win battle" that affects the company's development, and integrate the entire company's strategy. Resources are put into it to form a unified charge.
02 Resource allocation
How to rationally allocate resources in an enterprise is an important issue in overall budget management. Resource allocation should be carried out for different levels. The medium and long-term resource allocation should be aligned with the corporate strategy and identified and deployed in advance. Annual resource allocation should be based on market insights and strategic requirements, but the current market changes are highly uncertain, so dynamic resource allocation based on rolling forecasts is also required. The resource allocation for product lines, channels, and major customers needs to be considered from different perspectives, which cannot be satisfied from the perspective of traditional responsible units, so it needs to be considered at the group level to see which products are more profitable. Evaluate the rationality of resource allocation.
03Group management and control
Comprehensive budget management is one of the important means for enterprises to carry out group management and control. Through budget management, various units under the enterprise can be managed and controlled in the whole process before, during and after the event. For operational enterprises, such control usually involves core value creation links such as R&D, procurement, production, and sales. Controlling through monthly rolling forecasts and other means can achieve effective and most economical coordination to achieve balanced low inventory and reduce out-of-stock.
04 Forced management
In order to adapt to changes in the economic environment, an enterprise's budget management system needs to be constantly updated and optimized. The current business system and financial system do not necessarily support refined budget management, so attention needs to be paid when designing the budget system. When designing the budget system, it is necessary to be moderately advanced, and not design based on the management foundation and data foundation of the enterprise. This moderately advanced approach can lead the development direction of the enterprise and promote the improvement of the basic management level and the data foundation of the front-end business financial system.
In short, as a part of the enterprise management system, comprehensive budget management must run through the business decision-making and implementation links of the enterprise. To play the role of comprehensive budget management, the enterprise must clearly define the management objectives, so as to better realize the development of the enterprise.