How to do budget management well

In budget management, we must first harden the budget constraints and strictly implement the budget. Through the hard budget constraint, employees can clearly know what the budget goal is, what they should do and what they should not do in the process of achieving the goal. To this end, enterprises should do the following three aspects:

Refine the budget.

Making a clear and definite budget is an important prerequisite for implementing budget management. If the budget is general and vague, then the implementation of the budget is like a ship lost in the sea. The key to making a clear and definite budget is to refine the budget. Break down the budget system, responsibilities, indicators, expenses, quotas and other aspects into every corner and individual of management. The refinement of the system can ensure that all management activities of enterprises have rules to follow; The refinement of responsibilities can improve work efficiency and prevent wrangling; The refinement of expenses is conducive to cost analysis and seeking ways to reduce costs; The refinement of indicators and quotas is helpful to the assessment of budget implementation results and the encouragement of employees.

Strictly enforced.

No matter how good the budget is, if it is not effectively implemented, it will only be an armchair strategist, so the budget should be strictly implemented. Through the refinement of responsibilities, the voucher transfer and formalities approval in the process of budget implementation are controlled to ensure the effectiveness of budget implementation. For example, the Budget Management Committee can coordinate with the relevant budget execution departments of secondary units to formulate cost control cards and planned picking cards to control budget execution. Then, according to the nature and amount of the cost items and the importance of the relative responsibility center, it is controlled by year or month respectively. As the final control point, the finance department first looks at whether the general business has a budget, and refuses to enter the account without a budget. Under special circumstances, you can overspend, but you have to go through the adjustment procedures.

Strong supervision.

The implementation of budget is closely related to supervision, and strong supervision is an important guarantee for effective implementation. In order to strengthen supervision, enhance the objectivity, impartiality and independence of supervision, the budget supervision work is jointly completed by the budget management Committee and the internal audit department of the enterprise. The internal audit department does not participate in the preparation of the budget, but only supervises the implementation process and results of the budget, and is directly responsible to the director of the budget management Committee (generally the general manager of the enterprise). On the one hand, the internal audit department can make use of the enterprise's financial network system to conduct a surprise review of the secondary units in the process of budget implementation, on the other hand, it can conduct a regular review at the end of the period according to the summary results of the financial department.