How to control the budget well

How to control the budget? Budget management is a management tool. Like all other tools, we must have the correct concept of using tools and adopt the correct method of using them, so as to effectively play the role of tools. The promotion of budget management depends on more thinking and exploration.

How to do a good job in budget control and strictly implement 1

No matter how good the budget is, if it cannot be effectively implemented, it will only be an armchair strategist, so the budget should be strictly implemented. Control voucher transfer and formalities approval in the process of budget implementation through responsibility refinement 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 cost items and the importance of relative responsibility center, the control card is controlled by year or month respectively. As the final control point, the financial department first checks whether the general business has a budget, and if there is no budget, it refuses to record the project in the account. Under special circumstances, you can overspend, but you must go through the adjustment procedures.

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 beneficial 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.

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 regular reviews at the end of the period according to the summary results of the financial department.

How to do a good job in budget control Part 2( 1) Dealing with economic business strictly according to the budget is beneficial to the realization of enterprise cost strategic objectives.

The budget is rigid after preparation, and all departments should handle and implement economic business in strict accordance with the budget. Strict implementation of the budget is "effective" and the fundamental guarantee for achieving results. While doing a good job in daily work, as long as all departments can complete the budget objectives well, the strategic objectives of the enterprise can be realized. This shows that dealing with economic business in strict accordance with the budget plays a vital role in realizing the strategic objectives of enterprises.

(B) Budget management is conducive to cultivating awareness of cost control.

After a period of promotion, some practices will form a routine and habit, as will good practices and bad practices. At the beginning of budget management, many departments had no sense of budget control. However, the promotion of budget management can cultivate the awareness of budget control of other departments and personnel, make them consciously control the budget, and then promote cost control.

(C) budget management for enterprises to clear the cost control objectives.

The enterprise goal is abstract, and it is difficult for all departments to link economic business with enterprise goal when dealing with economic business, which often makes the goal of enterprise cost control unclear. This is particularly evident in the various expenditures of enterprises.

Prerequisites and specific measures to strengthen budget management

Since the birth of General Electric, Dupont and General Motors in the United States in the1920s, budget management has been gradually extended to all countries in the world. After the reform and opening up, China began to introduce western management experience, and many enterprises began to implement budget management. The author thinks that budget management, like other management methods, needs to be combined with the actual situation in China to achieve good results. In order to make budget management effective, we should adhere to the following tasks.

You can't fight alone, you must all participate.

Although the leading department of budget management in many enterprises is the financial department, the final budget results are mostly reflected in the financial statements. However, as a method of enterprise resource allocation, the preparation, implementation and analysis of budget really need the participation of all employees to be effectively implemented.

(2) avoid just controlling and cutting expenses, but grasp the degree from the overall situation.

When people talk about budgets, they usually think that less is better, but this is not the case! Budget is a way to allocate enterprise resources. Enterprises occupy these resources, of course, in order to put into sales operations to obtain output to achieve corporate goals. Generally speaking, there is no output without input. In order to get more and better output, more input is needed.

(C) from the business design budget project, simplify the complex and avoid being too financial.

A comprehensive budget requires the participation of all employees. The application of accounting subjects is a relatively professional knowledge, and people in other departments may not use it well, especially some projects that need to be shared will bring difficulties to people in other departments. Based on this, the author suggests that budget items and budget indicators should not be designed according to accounting subjects, but should be designed according to the idea of "what to do, how much to spend, and when to spend money", requiring all departments to prepare budgets accordingly.

(4) Strengthen the construction of budget team and implement budget management.

We should attach importance to the cultivation of accounting talents, strengthen the sense of responsibility of comrades engaged in financial management, and cultivate their professional ability. Finally, it is necessary to develop budget personnel in various departments more widely, organize business training, and cultivate their budget management ability and awareness. On this basis, we should pay attention to the implementation from level to level, constantly improve professional skills and comprehensive quality, enhance the predictability and predictability of budget work, improve the level of budget management, and promote the growth and development of enterprises!

How to do a good job in budget control 3. Comprehensive budget is the basis of cost control.

The reduction of absolute cost is achieved by establishing a control environment, which mainly depends on the implementation of the strategic plan that is materialized and quantified by the comprehensive budget. Through the comprehensive budget, the strategic plan of the enterprise is subdivided, specifically to all links and departments of production and operation. Strengthen the internal control of enterprises, establish a perfect control system and form a good control environment.

On the other hand, the "full staff" feature of comprehensive budget requires enterprises to cultivate employees' awareness of comprehensive budget and encourage employees to actively participate in enterprise budget. As employees are the implementers and executors of enterprise strategic plans, it is helpful to avoid employees' resistance to the budget by actively participating in the budget, so as to better play the role of budget control.

Second, the comprehensive budget is the basis for determining the cost index.

Manufacturing cost control has two meanings, one is the control of product cost in production stage. Another meaning emphasizes the control of all costs and expenses in all aspects, links and stages of enterprise production and operation.

From the meaning of cost control, we can know that enterprise cost includes not only the cost of product production stage, but also all the costs and expenses of the whole production and operation process of the enterprise. In order to strengthen cost management, enterprises should not only highlight key points and do a good job in cost control of product production, but also take care of all aspects and do a good job in cost control at all stages of enterprise production and operation. Therefore, in the cost control management of modern manufacturing industry, enterprises should implement a comprehensive budget to determine the total cost of production and operation, establish a standard cost system, and unify pre-planning, in-process control and post-feedback.

However, just setting cost indicators does not guarantee that all kinds of expenses of enterprises will be controlled within the budget. Therefore, it is necessary to decompose the budget based on the cost standard, and decompose the cost budget layer by layer, specifically to each department, implement the responsibility system, strictly control the department consumption, and ensure that the cost does not exceed the standard.

Third, it is a tool to divide the responsibilities of departments.

To implement cost control in modern manufacturing industry, we must deal with the relationship between enterprises and subordinate production units and the relationship between departments in cost management. Under the unified arrangement of enterprises, it is necessary to clarify the content of cost management in each production unit and combine the cost control between enterprises and production units. Through a comprehensive budget, the cost indicators are decomposed and implemented according to the production system from factory department to workshop, workshop to team, and hierarchical control is implemented. Factories, workshops and teams are responsible for their own control indicators.

Taking the cost budget of Donglong Investment Group as an example, Mr. Yin pointed out that through the implementation of comprehensive budget management software, Donglong Investment decomposed the cost into dozens of projects and budgeted separately. The process is transparent and plastic, and it is easy to find loopholes in production management. In addition, the cost budget is very detailed, and clear instructions can be issued to the following workshop directors through the system to ask them how to reduce costs and control expenses.

Four, coordinate the relationship between the business department and the financial department.

Comprehensive budget includes operational budget and financial budget. Enterprise budget consists of sales budget, production budget and purchase budget. Financial budget includes cash budget and expense budget.

Through the implementation of comprehensive budget, we can handle the relationship between financial department and other business departments in cost management and clarify the content of cost management in each department. Under the leadership of the director, manager or chief accountant in charge of finance, the financial department is the main part, and the cost control of the financial department should be combined with other departments to form a cost control system that runs through the whole enterprise and connects the left and right parties. On the basis of overall cost management, the financial department breaks down the cost indicators into specific indicators according to the constituent items, and implements them to the business management departments of the enterprise, which manage various cost control indicators according to their respective responsibilities.

Five, the comprehensive budget makes the product production cost control concrete.

The production cost of modern manufacturing products mainly includes direct material cost, direct labor cost and manufacturing cost.

1, direct material cost

Direct material is the main part of product production cost, accounting for about 70% generally, so it is the focus of production cost control. Direct material control should first distinguish the types of materials used in product production, and then determine their standard dosage and standard price in unit product.

2. Direct labor costs

Direct labor costs are simply the wages of workers in production costs. This part of the cost control is also divided into "quantity" and "price". Usage refers to working hours called labor efficiency, and price refers to hourly wage rate. Under the actual output, when there is a difference between the actual wage of direct labor and the standard wage of direct labor, we should calculate and analyze it from two aspects: labor efficiency difference and hourly wage difference, find out the reasons and formulate countermeasures. "Quantity difference" is the difference of labor efficiency, which reflects the level of work efficiency, that is, the wage level borne by unit products. "Price difference" refers to the difference in hourly wage rates. In the non-piecework system, when the wage level of workers is determined, the "price difference" reflects the difference in employment scheduling of enterprises. If a worker with an hourly wage rate of 65,438+00 yuan/hour is competent for the job, and a worker with an hourly wage rate of 65,438+065,438+0 yuan/hour is arranged to do a job, the actual cost will be higher than the standard cost. Therefore, the comprehensive budget should optimize the allocation of human resources, formulate direct labor cost standards, and control direct labor costs.

3. Manufacturing cost

The standard cost of manufacturing expenses is compiled by department, and the standard cost of manufacturing expenses of each department is also determined by its quantity standard and price standard respectively. The quantity standard usually adopts the direct working time per unit product (or other dosage standards such as machine working time). The price standard refers to the allocation rate standard of manufacturing expenses. Manufacturing cost allocation rate standard = manufacturing cost budget/production standard manufacturing cost budget refers to the minimum payment amount of each expense item under the reasonable control of saving costs as much as possible.

After defining the composition of enterprise product production cost, we should formulate accurate product production cost budget accordingly, and carry out cost control in strict accordance with the budget indicators in production and business activities.

Six, the comprehensive budget control period cost

Enterprises should budget such expenses that may occur in a certain period in advance, and then control the expenditure according to the budget in the future. After budgeting, the implementation of control depends on the approval of various expenses. The approval basis is the budget amount, and the approval authority is allocated to each responsible department. The department in charge of examination and approval should always pay attention to the budget limit and cannot exceed it. If there is any expenditure exceeding the budget, it must be reported to the higher authorities for separate approval in advance.

Seven, comprehensive budget control product quality cost

It includes two aspects: one is the cost of prevention and inspection, and the other is the cost of loss. The former is directly proportional to the product quality level, and the cost of prevention and inspection will increase, that is, the control of product quality will be strengthened accordingly, the product quality will be improved accordingly, and the loss cost will be reduced accordingly. However, the loss cost is inversely proportional to the product quality level. If the product quality declines, the ratio of defective products to unqualified products will increase, and the loss cost will inevitably increase. On the contrary, if the product quality is improved, the loss cost will be greatly reduced. Therefore, in order to minimize the quality cost of enterprises, the sum of the two must be minimized.

Modern manufacturing industry implements comprehensive budget management, quota management of product quality cost, strict analysis and calculation of product quality cost, finds out the balance point between prevention and inspection cost and loss cost, and ensures the minimum sum between them, which is the lowest quality cost of enterprises.

Eight, inspection and evaluation can not be separated from the comprehensive budget.

Inspection and evaluation are routine and regular supervision and inspection to ensure the effectiveness of cost control. The core content of comprehensive budget is to implement responsible budget management, which is reflected in the principle of "whoever uses it benefits and is responsible" in cost control. Through budget decomposition, the responsibility center is divided, which reflects the unity of power and responsibility. Clarify the responsibilities and authority of the person in charge of the responsibility center, take the cost control task spent by the department as the assessment standard, and formulate the reward and punishment system according to the completion of the cost index. Obviously, the comprehensive budget index provides a scientific basis for this kind of inspection and evaluation. Without a comprehensive budget, it will be difficult for enterprises to effectively define the management responsibilities found in inspection and evaluation.

In a word, comprehensive budget is the basis of cost control in modern manufacturing industry, and the implementation of cost control measures must rely on comprehensive budget. Generally speaking, comprehensive budget and cost control are both important contents of modern manufacturing management, but the status of comprehensive budget is higher than cost control. Because, first of all, strategic management is the primary problem of modern manufacturing industry, and cost management must be carried out under the guidance of strategic management, and comprehensive budget is closely linked to company strategy. Cost control has certain independence and integrity, and its position is far less than comprehensive budget. Secondly, the implementation of comprehensive budget management generally requires the establishment of budget management committees, budget management offices, budget execution agencies, budget evaluation agencies and other management institutions, which are more closely integrated with the enterprise organizational system.