What Is Budgetary Control?

Budget control is the control of enterprises to check and supervise the production and operation activities of various departments according to the revenue and expenditure standards stipulated in the budget. Its role is to ensure that various activities or various departments fully utilize the operating resources in the process of achieving the established goals and realize profits, so that the expenses are strictly and effectively restricted. Its budget includes income budget, expenditure budget, cash budget, capital expenditure budget and production liability budget. ^[1]

Budget control

Calculate beforehand, control in the event, reward and punish afterwards, this is the budget!

One of the most widely used control methods in management control is budget control. Budget control initially indicated

Have you encountered the following situations in your work:

The company is not well established

(1) The budget is a plan, so the work of preparing the budget is a plan.

The budget content can be simply summarized into three areas:

1. "How much"-what are the income (or output) and output (or input) of various management tasks to achieve the planned goals;

2. "Why"-why must this income (or output) be so much, and why it is necessary to spend (or invest) so much;

3. "When"-when income (or output) and expenditure (or income) are realized, income and expenditure must be balanced.

Recognize the importance of budget for business management

Understand budgeting methods

Understand and build a budget management system suitable for your business

Coordinating the contradiction between needs and resources

Master effective ways to track budget execution

Learn to effectively monitor and evaluate business operations through budget management

Really improve business efficiency through budget management

The budget is a set of estimates in form

There are some dangerous tendencies in budget work to invalidate budget control. Over-budgeting is a risk. The trivial rules for very small expenditures have also led to the loss of the freedom required for supervisors to manage their own departments. So, to what extent should the budget be detailed, it must be carefully linked to the degree of authorization

Because budgets that lack flexibility can be dangerous, and maximum flexibility that is consistent with efficiency is the basis for good planning and control work, so people are paying more and more attention to the application of variable budgets. This budget usually changes with sales volume, so it is mainly limited to the application of expense budget. When the unit variable expenses (costs) are constant, the total number of variable expenses changes as the sales volume changes. Therefore, in practice, variable budgets are mainly used to control fixed expenses (costs).

In fact, fixed costs are not absolutely constant, but basically remain constant within a certain output range. The fixed costs show a step-like relationship with changes in production (or sales). Therefore, in most cases, the variable budget always proposes a range of output within this range, and various fixed cost elements are constant. If the output is lower than the lower limit of this range, it is necessary to consider adopting a fixed fee that is more suitable for lower output, such as compressing administrative staff to handle idle equipment. If the output exceeds the upper limit of this range, in order to consider the necessary fixed costs according to the larger production regulations, such as adding equipment, expanding the area of the plant, etc., a different variable budget should be prepared.

Budget preparation process and content

The contents and communication methods of the budget meeting

One of the difficulties in budgeting-sales budget

Sales budgeting

Common sales budget methods and their drawbacks

Sales budget analysis process and content

Research on Historical Sales Behavior Research on Future Sales Behavior

Differences and results of historical future comparison

Sales budget quantification method

Forecasts based on historical data

Forecasting by linear analysis and regression analysis

Trend analysis forecast

Time linear analysis and prediction

Seasonal change-based forecasts

Control of Uncertain Factors by Probability Method and Sensitivity Analysis

Case study: How to use the above methods to complete the sales budget

Matching sales budgets and strategies in emerging markets

The Pros and Cons of Liberal Opportunism Without Strategic Budget and Its Application

How budgets can motivate sales

Difficulties in Budgeting-Production Budget and Inventory Management

Preparation of production budget

Management cost of inventory

Embarrassment of inventory management under sales budgets in emerging markets

Importance and difficulties of inventory management for global sales

Different results of fixed budget and variable budget in inventory management

How to use different budget methods to compile production budget and purchase budget under variable budget

Difficulties in Budget Preparation Part Three-How to Prepare Budgets for R & D and Other Projects

Difficulties in Budget Preparation Part 4-How to Prepare Budget Income Statement and Balance Sheet

Budget control process