Characteristics of performance budget management

Performance budgeting must take enterprise strategy as the starting point and provide services for the realization of the strategy. Therefore, performance prediction must consider the life cycle of the enterprise, pay attention to the long-term goals of the enterprise while paying attention to the short-term business activities of the enterprise, make the short-term budget indicators adapt to the long-term development strategy of the enterprise, enhance the cohesion of performance budgets in each period, and make performance budget management a propeller to realize the long-term development goals of the enterprise.

Optimal allocation of resources

Performance budget management is a system with full control, all-round control and whole process control. Under the performance budget network, all the resources of the enterprise should be included in the monitoring of budget management, the limited resources have been redistributed, and the boundaries of internal functions of the enterprise have been gradually weakened. Through performance budgeting, they can be integrated with each other in order to better coordinate and reduce the phenomenon of idle resources.

systems management

Performance budget management itself is a systematic control process with clear procedures. The use of resources included in performance budget management needs project establishment, preparation, approval, implementation, supervision, variance analysis and evaluation. The purpose of the performance budget management system is to reduce the budget risk, and it is a self-restraint and self-management management information control system.

"Benchmarking Management"

Performance budget management provides a control scale and measurement standard for the daily operation and financial revenue and expenditure activities of enterprises. At the same time, enterprises regard performance budgeting as a "benchmark", so that all budget executors know their action goals and the results they can achieve.