What Is an Annual Budget?

The annual budget refers to the fiscal revenue and expenditure budget with a budget valid for one year. The year here refers to the budget year, and generally has the Gregorian calendar system and the inter-calendar calendar system. The so-called Gregorian calendar is from January 1 to December 31. At present, the countries that adopt the Gregorian calendar are France, Germany, and so on. ^[1]

Annual budget

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The annual budget refers to the fiscal revenue and expenditure budget with a budget valid for one year. The year here refers to the budget year, and generally has the Gregorian calendar system and the inter-calendar calendar system. The so-called Gregorian calendar is from January 1 to December 31. At present, the countries that adopt the Gregorian calendar are France, Germany, and so on. ^[1]

Have you encountered the following situations in your work:

How important is the budget in the business activities of an enterprise?

How to transform the business objectives of the enterprise into the basis for the actions of the performers?

How can I make an accurate budget?

How to prepare a corporate budget to avoid cost overruns?

Combining business objectives, through environmental analysis and current inventory, formulate annual work priorities and annual plans

In-depth understanding of budgeting methods and precautions

Learn how to prepare cost estimates for various departments in order to effectively control costs

Improve the effectiveness of the company's overall goals and resources

Effective use of budgets to control operating input and output performance

Financial manager and related financial accountants responsible for budgeting

Non-financial professional managers involved in budgeting

Annual plan

Essentials for the preparation of the annual work plan

Key points for preparing the annual operating budget

Essentials for the preparation of the annual operating budget

Summary method of annual operating budget

Review of annual operating budget

As the starting point of budget management, budget goals are the key to the functioning of the budget mechanism. The determination of the company's annual budget goals must address the following two issues:

1. Establish an indicator system for budget goals

Establishing an indicator system for budget objectives should mainly address issues such as which indicator is used as a budget guide, how to quantify core indicators, and how to determine the weight between indicators.

In terms of content, the budget target indicator system should include profit indicators, scale growth indicators, investment and research and development indicators, risk control (capital structure) indicators, financing arrangements, and so on.

2. Calculate and determine the target value of the budget target

According to the requirements of the modern enterprise system, determining the budget goals is basically a process of coordinating the interests of the company's shareholders, board of directors, and operators.

Theoretically, the value of each target of the budget target is an enterprise's budget benchmark. It should be challenging and must ensure that the company and its departments can achieve it through hard work. If budget goals are out of reach, they will lose their incentive. Therefore, the setting of budget goals should be based on strategic goals, and at the same time, in conjunction with the annual business plan process, the annual business tasks should be reasonably determined, and the corporate development strategy and the actual situation of each business unit should be integrated into the budget management system, and constitute one of the standards of the budget evaluation system .