The Development Path of Comprehensive Budget Management Under the Background of Business-Finance Integration_Trends_北京智达方通科技有限公司

With the rapid development of the social economy, the functions of a single organizational structure have significantly limited the innovative momentum of enterprise development. The continuous emergence of business barriers has resulted in severe information asymmetry, increased communication and collaboration costs, reduced operational efficiency, and the specialized division of labor has gradually become a constraint on enterprise development.

In 2016, the "Basic Guidelines for Management Accounting" issued by the Ministry of Finance explicitly stated that "management accounting should be embedded in relevant areas, levels, and links of the unit, based on business processes, utilizing management accounting tools and methods to organically integrate finance and business."

Business-finance integration refers to the combination of business development and financial management, where business and finance merge into one entity, considering from an overall enterprise perspective whether business activities align with the group’s development goals. Under the background of business-finance integration, the comprehensive budget management model of enterprises has also undergone significant changes. Traditional methods of collecting and organizing data information can no longer meet the needs of enterprise development. Integrating business-finance integration into enterprise budget management facilitates the two-way flow of business and financial data, thereby improving the management level of enterprises.

Why Achieve Business-Finance Integration?

In the past economic growth process, the backwardness of enterprise industrial structure and management models led to data silos and resource waste. Due to delays in information transmission, the efficiency of corporate finance departments was low, and the level of financial management needed improvement. As enterprises continuously expanded in scale and business types gradually diversified, more operational issues were exposed. Therefore, risk prevention and control became particularly important at this stage. Enterprises should establish early warning mechanisms to prevent problems before they occur. Reducing financial risks and strengthening business performance have become strategic goals for enterprise development in the new era. This requires mutual assistance between departments, increased attention to key data indicators, and promoting the smooth development of enterprises through integration.

In today’s highly competitive market environment, business-finance integration breaks the above inherent patterns by closely combining financial management with business, demonstrating significant advantages and value in resource integration and information sharing. It enables full exchange and communication of various data information, improves enterprise risk management and control capabilities, optimizes resource allocation, and enhances economic efficiency and profitability. By treating business-finance integration as an important strategic direction for innovative development, enterprises also promote digital transformation and digital management levels, laying a solid foundation for enterprise development.

Problems in the Process of Comprehensive Budget Management in Enterprises

In the past, enterprises often lacked a budget management concept that integrated business and finance during operations. Enterprises habitually regarded the finance department as the leading department for comprehensive budget management, which invisibly weakened the rationality of budget preparation and its guiding role for business. Budget management work did not achieve true unification, and financial and business data were not circulated in a timely manner, leading to a disconnect between finance and business. Additionally, limited financial penetration into business resulted in weak budget control. Financial personnel were often confined to the collection, organization, and analysis of financial data and could not provide timely feedback on business-related issues for effective error correction, reducing comprehensive management to a formalized state. Secondly, low levels of business-finance integration were also common issues. The significant differences between business objectives and financial objectives made it impossible to conduct scientific and effective analysis of data information in practice. Data information from the business end could not be quickly transmitted to the finance end for accounting and integration through sharing technology, making it difficult to achieve true business-finance integration.

As the concept of business-finance integration gradually penetrates enterprises, they have begun to optimize their own budget management systems, combining business characteristics and based on financial reality. Importantly, they are strengthening the collaboration between finance and business to adapt to the future market’s economic management system. By following the comprehensive principle of budget management, taking the overall operation of the enterprise as the standard, fully considering multi-dimensional indicators of finance and business, adopting a top-down and bottom-up preparation method, optimizing financial indicators, strengthening budget control, improving budget assessment, and enhancing risk management capabilities, the goals of comprehensive budget management become more targeted, achieving healthy enterprise development.

Optimization Strategies for Comprehensive Budget Management from the Perspective of Business-Finance Integration

Promoting comprehensive budget management in enterprises against the background of business-finance integration requires establishing a sound comprehensive budget management system. Comprehensive budget should be used to integrate enterprise budget management into the finance and business ends, establishing a collaborative management mechanism. First, enterprises should instill the concept of business-finance integration into enterprise management, building a budget management organizational structure suitable for enterprise business, and gathering relevant personnel from top to bottom and bottom to top to ensure the smooth development of comprehensive budget work. Secondly, a reasonable and effective performance appraisal system should be established for financial and business personnel, adjusting personnel assessment plans according to the standards of business-finance integration, and encouraging personnel from both departments to understand each other’s financial data and business information, thereby greatly mobilizing the enthusiasm of enterprise employees. Through dynamic analysis of data information, optimized internal control can be achieved, providing scientific and accurate data support for the formulation and execution of various tasks. Furthermore, financial sharing cannot be separated from the application of intelligent technology and information systems. The innovation and improvement of enterprise systems have become a strong guarantee for business-finance integration. Through seamless integration with EPM systems, real-time updating of enterprise data information across departments can ensure that enterprise managers make timely decisions based on forecast results, achieving enterprise strategic goals.

Based on the informatization background, Intcube’s comprehensive budget management system actively introduces emerging technologies and ideas for enterprises, assisting them in building a full-lifecycle comprehensive budget management model covering budget preparation, expense management, budget execution control, performance management, etc. Using business to drive finance, through data mining and analysis technology, it leverages the value of data applications, promotes synergy between various departments of the enterprise, and enhances the construction level of business-finance integration.

As a new management concept and model, business-finance integration has become an inevitable trend in enterprise management in the digital era. Through the integration of finance and business, as well as the connection and cooperation between various departments, enterprises achieve a two-way improvement in management and decision-making efficiency, and enhance enterprise economy. In the future, in an era of both opportunities and challenges, the role of business-finance integration will become more obvious. Intcube will assist enterprises in properly facing challenges, seizing development opportunities, exploring and applying the management model of business-finance integration according to their own industry characteristics, and helping enterprises achieve sustainable development and innovative reform.