Five budget management models! Wallpaper business you must not know.

China Paint network
: In order to adapt to the vagaries of the wallpaper market, enterprises should find their own management priorities, choose the optimal budget management model. According to the analysis of professionals, it can be divided into the following five budget management modes: cash flow budget management mode, cost control budget management mode, sales-based budget management mode, target profit budget management mode, capital expenditure budget management mode.
of operating characteristics, the financial characteristics of the cash flow budget management model are the recovery of large amounts of accounts receivable, while the potential investment projects are not identified, resulting in a large amount of net cash flow. For fast-moving consumer goods or liquor products, including some of the most aggressive models that many virtual manufacturing now offer, cash flow reaches the concept of cash as king. Once broken, it dies quietly.
capital budget management mode is based on cash inflow and outflow control as the core, through the cash flow planning and control to achieve the control of various production and business activities within the enterprise. It is more suitable for the rapid development of business, enterprise management in the expansion stage, or the internal control of large enterprise groups.
from the operational characteristics, the cost control budget market growth slowed down, with a higher and stable share of sales. In the case of relatively stable wallpaper enterprise field, the size of the benefit depends on the relatively controllable factor of cost, the cost management strategy affects the degree of realization of expected profit, and the net cash flow is positive and stable. This is a relatively mature stage of enterprise development. Many costs are supported by historical data, which can be used to evaluate many cost behaviors today. However, due to many cost changes and material changes, or some process changes, so that it is not reference.
the internal logic of the capital budget management model, since the market price is basically stable, enterprises must tap the potential in cost in order to obtain the expected return. It is emphasized that cost management is the core and main line of enterprise management, based on the expected benefits of enterprises, planning the total budget cost of enterprises based on market price as a known variable, and decomposing them into all responsible units or management departments involved in cost, forming the sub-budget cost that constrains the management behavior of each budget unit. The budget system centered on the target cost is suitable for the long life cycle of the product, and the product development is in the mature stage, the market demand is more stable, the competitive advantage of the enterprise mainly comes from the lower cost. General hydropower station operation, coal-fired power plant operation, per capita production capacity has a very mature historical data to support, generally estimated to give a post and fixed staff, 89 not far from ten.
from the perspective of operating characteristics, capital expenditure budget business gradually accepted by the market, the total market demand rose in a straight line. The center of management is through the market, marketing to develop market potential, improve market share, requires a lot of marketing costs. The size of the cash inflow is still uncertain and the net cash flow is negative or low.
the main contents of capital budget management model include market-based, based on the target requirements of increasing market share and sales forecast to prepare sales budget. Adhere to the principle of "selling fixed production", the preparation of production, costs, costs, and other functions of the budget. The preparation of a consolidated financial budget is based on the budgets of the various functions. From the point of view of budget mechanism, the management of the budget model is centered on marketing management, the advantage is that the production and business activities within the enterprise can be organized around the center of market demand, so that the budget is more objective and can better play the role of the plan;
from the point of view of business characteristics, the target profit budget management model of the company in order to make life "infinite" extension, it is necessary to diversification of business, series development, so that the group management model can be developed. How to target the operation control and performance evaluation of different subsidiaries and branches in order to give full play to the overall advantages of the group is the primary problem of wallpaper enterprise management. Capital budget management mode, to set the target capital profit margin as a starting point, through the target capital profit margin as the starting point of the budget management model, strengthen the control and evaluation of subsidiaries and branches.
in the practical work of wallpaper enterprises, comprehensive budget management classification is not absolute, usually all kinds of budget management models are intertwined, together constitute the company's budget management system. Wallpaper enterprises no matter what budget management mode, ultimately is to achieve the company's target profits, reflecting the company's overall pursuit of the value of two services.
From the operating characteristics, the capital expenditure budget management model is a large amount of cash invested in research and development, market research, fixed assets, net cash flow is negative, the success or failure of new business development and the size of future cash flow has greater uncertainty, facing greater investment and operational risks. Generally speaking, the start-up period of enterprises, the pre-marketing work, project launch, for large-scale regional infrastructure pre-investment.
From the capital budget management model, wallpaper enterprises this input budget began to intervene in the management of the whole process, the budget to capital input as the center, actively carry out investment budget estimates, the use of financial decision-making technology for capital expenditure project evaluation, the total project investment budget and the total cash outflow budget for each period. Financing budget, using the above-mentioned various budgets to monitor and manage the actual construction process, compared with the capital budget, evaluate the actual expenditure effect of capital expenditure projects.