Several Reasons For Reasonable Budget Of Enterprises

We must make budgets, especially those who undertake certain duties and are responsible for the results (no matter what departments they are responsible for, profit centers, cost centers, etc.)

This tool should be used more frequently in business departments, business areas or subsidiaries.

The reasons for this are described in detail below.

(1) budgeting is the best tool for surprises and rich managers, because they can arrange all plans in a systematic way and deploy their work around them.

For experienced managers or newly appointed managers, budgeting is the best tool for them to understand the business and their own field of work.

Budgeting for enterprises from the beginning may be the best way for people to understand and understand business characteristics, relationships and their "legality".

Unfortunately, in the vast majority of companies, new employees have totally ignored this aspect when they receive induction training, and the reasons for that are not clear.

Although other skills acquired by the new staff in training are also very important, only when they really begin to prepare a budget and their budget is rejected by two or even three times, because we can not make the right preparation at the beginning, can we say that they really have some knowledge in this field.

(2) it is configured.

The best tool, especially the allocation of human resources, is basically the only tool to allow resources to increase output efficiency.

(3) it is the best tool for planning and coordinating all activities in a certain field or whole company.

If there are barriers to interaction between part and the whole, we often boil down this problem to

And readjusting personnel, but in fact, it is rarely an organizational problem.

Compared with the adjustment of the whole organizational structure, the budget as a coordination tool may be better and simpler.

(4) budgeting is the best tool to integrate a department's employees, including its managers, into the whole organization.

In general, integration is a topic that is often discussed and is regarded as a topic in the corporate culture.

Employees should identify with their enterprises, enterprises should become a "big family" and so on.

However, so far, only a few companies have thought of using the budget as an integration tool.

(5) the budget is the only and the best tool in the following aspects: it enables us to know how the plan should be revised, when to revise and what deviations need to be adjusted, and more importantly, it will let us know what changes have taken place in the basis of the budget -- the real environment and its assumptions.

(6) finally, the budget provides an important foundation for effective and smooth interpersonal communication. Psychologists hardly realize this.

When the content of communication is not clear, it is meaningless to control the communication process.

However, the budget and its impact are very important enough to be the main content of communication.

These are employees who should understand and communicate, and it is also the focus of their work.