What are the components of a full budget? What is the relationship between the budgets?

1, business budget

Business budget, also known as the business or operating budget, is to reflect the enterprise's budget period of day-to-day supply, production, sales, management and other substantive business activities.

2, special budget

Special budget is for the enterprise infrequent long-term investment projects or one-time special business budget, which includes capital expenditure budget and one-time specialized business budget.

3, financial budget

Financial budget is to reflect the budget of the enterprise budget projected cash income and expenditure, operating results and the budget of the end of the financial position, which includes the cash budget, the projected income statement and the projected balance sheet.

Expanded Information

The comprehensive budget can help managers to plan, coordinate, control and performance evaluation. The implementation of comprehensive budget management is one of the experiences accumulated by successful enterprises in developed countries for many years, which is of great significance for enterprises to establish a modern enterprise system, improve management level and enhance competitiveness.

Budgeting is appropriate to use the top-down, bottom-up, up and down the combination of dynamic preparation methods.

The whole process is: first by the top management of the enterprise's overall objectives and departmental sub-objectives; the basic units according to the principle of one level of management level according to the development of the unit's budget program, submitted to the sub-department; sub-departmental and then according to the subordinate units of the budget program, the development of the department's budget draft, submitted to the Budget Committee.

Finally, the Budget Committee reviews the draft budgets of the divisions, communicates and balances them, and draws up a budget programme for the whole organization; the budget programme is then sent back to the divisions for comments.

After many iterations of bottom-up and top-down, the final budget is formed, and after approval by the highest decision-making level of the enterprise, it becomes the official budget, which is cascaded down to each department for implementation.

Carrying out comprehensive budget management is a long-term task for enterprises to strengthen business management, enhance competitiveness and improve economic efficiency. Therefore, we should take the comprehensive budget management as the primary work content to strengthen the internal basic management, set up a budget management organization, and determine the budget management of the first responsible person for each unit and department of the administrative principal, effectively strengthen the leadership, clear responsibility, and implementation of measures.

Baidu Encyclopedia - Comprehensive Budget