Corporate Decision Making Presents Initial Goals.

The general process of enterprise budgeting is usually based on the analysis of the budget of the previous year. According to the internal and external information of the enterprise and the influence of the future strategy, resources, investment and environment on the future operation of the enterprise, a preliminary budgetary index of a budgetary year is given. The preliminary budgetary indicators are generally more general, and the output value and profit data are obtained, and the departments' production and operation plans are put forward according to certain methods (such as comprehensive meetings). After a few repeated attempts, the final consensus can be reached and the enterprise budget can be worked out.

Enterprise budgeting generally needs to go down from top to bottom, and several bottom-up repeating can ultimately reach the same conclusion and draw the final budget assessment index. The purpose of collecting information is to produce the first top-down data in a more practical way. This basic data not only reflects the strategic intent of the enterprise, but also can not be divorced from the actual development of the enterprise. How to handle it involves not only the realization of the strategic goals of the enterprise, but also the immediate interests of the executive departments. Under normal circumstances, as the managers of the enterprises, they want higher incomes and lower expenditures, so that they can generate enough profits. For the budgetary executing units, the opposite is the opposite, and the first indicator is very important. If the index is too high, the executive departments can not see the hope, or perfunctory or conflicting, the index is too low, and the executive departments are picking fruit, which is not conducive to mobilizing the enthusiasm, but also may waste corporate resources.

In general, the initial budgetary data of enterprises are derived from enterprise The budget leading group, based on the implementation results of the previous year's budget, removed some unfavorable factors, plus favorable conditions for improvement, combined with economic, technological development and environmental changes to calculate an indicator (for the incomplete trust in collecting information, generally the first issued indicators would be higher than the theoretical indicators), and it was sent to all budget executive departments for discussion, and departments were assigned to plan their departments according to their objectives, and detailed description of the completion of the planning method and the failure to complete the project.

After budgetary preliminary indicators are calculated, the decision-making level needs to explain the prediction process through the meeting (general manager's office meeting), and jointly with the enterprise strategy, jointly agree to maintain low targets (of course, keep low indicators generally not downwards). Under any circumstances, enterprises must keep this low.

The initial indicators of the enterprise budget may be income, cost, profit, quality and so on. As a specific budget executive level, these indicators are often impossible to implement, and must be turned into departments that can be executed and checked and checked. If a simple income indicator is broken down, they must be broken down into the sales and manufacturing departments, and the sales department must be broken down into every part, area, and salesman, and should be broken down into dozens of indicators, such as sales volume, sales price, cash withdrawal, sales time limit and so on. budget management Only if there is a basis for assessment, if the decomposition of indicators in the budgeting process is not in place, things will not be implemented to the specific responsible person. If there is a problem, we must not bother to find the butt to fight.

It is impossible for the enterprise to decompose the target at all levels, and it is impossible for the whole enterprise to complete the task by the budgeting team. Most of the work has to be organized by the heads of departments. Index decomposition Statistics, reporting system, according to the lower level truthful reporting, the higher level is responsible for the lower level principle, and gradually decompose the entire index.

The budget group may only decompose the product variety and the planned price. The next large number of subdivision should be completed by the sales department organization. The decomposition of other indicators is also the case.

Budgeting should be focused on the decomposition of indicators, and the decomposition process of budgetary indicators is actually the implementation process of the overall production and operation plan of enterprises. It should be widely absorbed by the executive staff at all levels, and should not be limited to the budgeting team members. It should not be the heads of various departments in the small room. The information asymmetry exists at all levels. Enterprises should make full use of the timing of budgeting, publicize the enterprise strategy downwards, transmit the information that the enterprise has mastered, and collect the information that the executive layer has not yet grasped in the actual operation process. Only in this way can we reach a real consensus on the final budget of each level, so that the enterprise budget will eventually play a military role.