Break Through Comprehensive Budget Management Problems And Make Fine Budget

As the most conventional management accounting tool, there is much room for improvement in the understanding and application of these two tools.

The sales budget is the starting point of the enterprise comprehensive budget, and the budgets in production, purchase and inventory expenses must be based on the sales budget.

Therefore, to break through the difficulties of comprehensive budget management, we must start with the sales budget.

The first work of the sales department after obtaining the annual sales target is to evaluate the existing customers. According to the absolute value (potential sales) and relative value of the existing customers in the next 1 years (the proportion of total budget sales), the customers are divided into four categories: A, B, C and elimination. Among them, a is a potential large customer, C is a general customer, and B is between them.

Of course, the conclusion of customer evaluation is not constant, and it needs to be managed dynamically during the process of budget execution.

The main tasks of the budget planning stage include the prediction of potential sales volume and the deployment of sales resources.

How to identify potential sales? The determination of potential sales is the expected sales after considering the probability of occurrence.

The forecast of sales volume can be carried out in the following aspects.

First is the penetration of products, that is, repeat sales.

Consider how to increase the proportion of single product sales in the purchase of single products on the basis of original sales.

When making predictions, salesmen must provide the necessary basis for sales managers to review.

Next is the penetration of customers, namely cross selling.

On the basis of the original sales products, consider whether other existing products can be imported into the customer's purchase.

If the sales organization of an enterprise is divided according to the product line, this part of work needs to be completed by the inter departmental team. In order to achieve cross departmental referral, it is generally necessary to consider the establishment of a special one.

Indicators to guide.

Next is the development of new products.

If the potential demand of the customer is found, but the existing products can not be satisfied, the development and sale of the new product need to be considered.

When formulating this part of the sales forecast, it is necessary to participate in R & D, production, procurement and finance departments.

Finally, system integration.

If the location of the enterprise is the solution of the system, the product resources of the competitors and the surrounding industries can be considered to provide a package for the customers quickly.

This part of decision-making will form an important basis for purchasing budget.

Through the old customer maintenance and penetration found sales target gap, through the new customer development plan to make up for.

Enterprises should decompose the sales process into several stages from contacting potential customers to final pactions, and through the analysis of historical data, calculate the average customer conversion rate and the average paction volume of new customers at each stage.

Generally speaking, sales forecasts for new customers are mainly based on existing mature products, and new customers are mainly C, and a small amount can be assessed as B.

Starting from the established sales target, by summarizing the various stages

It can calculate the number of potential customers that need to be reached in each stage.

For example, every 2 potential customers who negotiate in depth can produce 1 formally signed customers; 5 potential customers can produce 2 potential customers who are deeply negotiated; 10 potential qualified customers can produce 5 potential potential customers; 100 initial contact customers can produce 10 eligible potential customers, and the initial conversion rate is 1% from the initial contact to the final paction, that is to say, in order to get 1 new customers, it is necessary to contact at least the first contact customers.

In the process of budget execution, customer stock and average conversion rate at each stage are important monthly monitoring data and performance management indicators.

If new customer development involves new regional markets, the sales department needs to prepare new markets.

And its cost budget.

The accounting standards for Enterprises No. thirty-third - consolidated financial statements stipulates that: during the reporting period, the parent company's subsidiary companies and businesses that are increased by the same control under the same control should incorporate the income, expenses and profits from the period from the beginning of the current business to the end of the reporting period into the consolidated profit statement. Because the subsidiary companies and businesses that are increased by merger or other means under the same control, the income, expenses and profits of the subsidiary and the end of the business purchase date to the end of the reporting period should be incorporated into the consolidated profit statement.

Therefore, M & A is also one of the methods of sales target planning.

The merger and reorganization plan of an enterprise includes investment plans and financing plans, and accordingly provides the basis for making investment and financing and capital budgets in the comprehensive budget.

In practice, the above sales budget planning work is not linear but intersecting.

The core concept of budgetary management is: business activities determine budgetary data (the right to decide financial power), any data has a clear source, coordination between cross departmental business activities and budgeting and budget execution (financial responsibility decision).

Only meticulous budget work can really play a role in guiding, forecasting and controlling the business.

In the first attempt to finely sell the sales budget, due to the lack of support from historical data, the intermediate process data such as conversion rate may still be determined by intuition.

However, after several rounds of trial and error, the sales budget of enterprises will become more predictable, operational and feasible.