How To Improve The Reliability Of Budgeting

< p > < a href= > //www.sjfzxm.com/news/index_c.asp > flexible budget < /a >, on the one hand, it can adapt to the changes of different business activities, expand the scope of the budget, better play the role of budget control, avoid frequent revision of the budget when the actual situation changes, on the other hand, it can evaluate and assess the actual implementation of the budget on the basis of a more objective and comparable basis.

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< p > < strong > (1) using probability budgeting to raise budgetary value < a href= > //www.sjfzxm.com/news/index_c.asp > accuracy > /a > /strong > /p >

< p > when budgeting, the variables involved, such as business volume, price and cost, sometimes can accurately predict its value, sometimes it is difficult to determine its value.

In the latter case, it is necessary to make some approximate estimates of the variables according to the objective conditions, estimate the scope of their possible changes, analyze their probability in this range, and then adjust the variables, calculate the expected values, and compile budgets.

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< p > adopting probability budgeting must follow the necessary procedures and form a signed document to clarify responsibilities.

When budgeting is actually made, it should be compiled according to different specific conditions.

According to the relationship between variables, we should determine the calculation method of budgetary indicators.

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< p > < strong > (two) the advanced nature and reality of the budget < /strong > < /p >

< p > budgeting should not only be advanced but also realistic.

We say that the advanced nature of the budget means that the budget can only be completed through the efforts of the employees of the enterprise.

The progressiveness of the budget reflects the improvement of budgetary indicators for all kinds of achievement indicators, and various consumption indicators are shown as a reduction in the level of budgetary indicators.

The advanced budget is conducive to mobilizing the enthusiasm of the employees in production and operation and realizing the short-term goals of the production and operation activities of the enterprises.

The reality of budget is the possibility of people completing their budgets through hard work.

Reality is also important for budget management.

If there is no reality, it is difficult to mobilize the enthusiasm and initiative of people's production and business activities.

Only when the budget is advanced and realistic can it be scientific.

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< p > < strong > (three) the verifiability of the budget < /strong > < /p >

< p > in order to improve the reliability of the budget, we think the budget < a href= "//www.sjfzxm.com/news/index_c.asp" > compilation work < /a > should be verifiable.

That is to say, for two qualified budget managers, the budgets made by the same method in the same enterprise have no essential difference in budgeting.

That is, their budgets are essentially the same.

We believe that adherence to the verifiability of budgeting can not only greatly improve the accuracy and reliability of the budget itself, but also enhance the sense of responsibility of employees, and at the same time, help to strengthen the basic work of enterprise management and promote the improvement of the management level of the whole enterprise.

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< p > to make the budget verifiable, it is necessary not only to choose the appropriate calculation method and compilation method according to the specific circumstances of the enterprise, but also to require all departments and individuals of the enterprise to provide the required signature materials for budgeting in the various links of budgeting, on the one hand, it can further clarify the responsibilities of participating in the budgeting staff, and on the other hand, it can also form the raw data in the enterprise management.

Verification is necessary when necessary.

In this way, we can not only eliminate the randomness of compiling the budget at present, but also fully mobilize the staff to participate in the budget management process and enhance the recognition level of the budget.

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< p > < strong > (four) flexible responsibility budget < /strong > < /p >

< p > under the market economy system, because the enterprise is facing a changeable social and economic environment, the amount of business projected by the budget is often different from the actual amount of business when a budget is completed. This difference is not conducive to accurately assessing the implementation of the budget.

Therefore, in the end of the budget, we need to adjust the original budget level in order to increase the comparability between the budget and the actual results.

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< p > even in the process of budget execution, in order to control economic activities and ensure the realization of business objectives, it is necessary to prepare flexible responsibility budgets for controlling the convenience of economic activities.

Because the flexible responsibility budget not only clarifies the responsibilities of various departments, but also provides a variety of business level budgets, so that it is convenient for direct or indirect comparison of the actual budget execution results with the corresponding budgetary responsibility levels. Timely disclosure of discrepancy and clear responsibility for differences will be helpful for all responsible units or individuals to control the actual performance of the budget within the permitted scope.

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< p > under the premise of permitting conditions, we advocate dynamic budget management in budgetary management of enterprises, that is, budgeting at the beginning of budgeting and budgeting according to the expected level of business at that time.

However, when analyzing the implementation of the budget, the budget of the enterprise's economic activities should be analyzed on the basis of the actual budget of the business volume.

In addition, in the process of budget implementation, in order to analyze and control economic activities and understand whether economic activities can meet the requirements of budget management, we need dynamic budgeting as a tool.

Once an enterprise finds that the market is changing and the volume of business changes, the budget can be compiled dynamically according to the volume of business that can be accurately determined at that time, so that the budget can be established at an accurate level.

As the amount of business budgeted depends on the actual level of economic activities, it is conducive to the implementation of budgetary control and the establishment of a more comparable basis for budget assessment and analysis, so as to facilitate the assessment of budget completion.

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