The difference and correlation between the business plan and the budget

1. The business plan refers to the overall arrangement of various resources required for the implementation of the plan in terms of time and space according to the requirements of the relevant objectives of the business strategy decision-making plan. The enterprise shall determine and organize the comprehensive planning of all production and operation activities within a certain period of time. Under the guidance of the national economic plan, according to the market demand and the changes in the internal and external environment and conditions of the enterprise, combined with the long-term and current development needs, it makes reasonable use of human, material and financial resources to organize and plan all the business activities of the enterprise to achieve the expected goals and improve economic benefits;

2. The operating budget is the budget for planning and controlling the daily production and operation activities during the budget period. The content of the operating budget can be divided into two parts: one part is the budget that directly reflects the production and operation activities, including the sales budget, production budget, direct material budget, direct labor budget, manufacturing cost budget, product unit cost budget, sales and administrative management fee budget, etc.

The other part is the budget that reflects the financial status and financial results of the enterprise's production and operation activities, including the projected profit and loss statement, the projected capital balance sheet, and the cash budget.

1.The business plan is to formulate an action plan (it is the company's focus for next year's work according to the strategic plan, what to do?). What are you going to do?

Budgeting, on the other hand, is more like guiding direction and outcome (is it the transformation of business language into financial data, or estimating the impact and results of business activities, how much resources need to be invested?). How much benefit will it generate? ）

2.The business plan is a data sheet for work, when, what to produce, how much to produce, how much to sell; Budgets are more like expense and income planners, with data that shows how much to spend and how much to earn.

3.From the perspective of current practice, to put it simply, one is the quantitative and modeled future production and operation arrangement, and the other is the re-monetization of the quantitative production and operation plan.

4.The business plan is more macro, and the budget is more detailed (KPIs can be at the operational level and financial level, the two are related, and they are also one of the indicators to implement the company's strategy).

The relationship between them:

1.Relationship between the company and its subordinate units according to the 3 5 years strategic plan, the preparation of the annual business plan. According to the annual business plan, the financial department will summarize and prepare a comprehensive budget management.

2.Balance relationship: The business plan estimates the effect and benefits of business activities through financial calculation, and the company as a whole evaluates whether the business plan and budget meet the strategic management objectives. Balancing resource matching and input-output is one of the important bases for the company's investment decision-making.

3.Harmonious relationship: The business plan clarifies the annual work direction and work objectives of the company and its subordinate units.

It is an important part of the implementation of the strategy and the main basis for annual work performance. The budget is connected with the business plan, the plan is broken down and refined, combined with the accounting professional language, the business plan is clarified and rigorous, and its multiple roles of planning, constraint and incentive are played. The two coexist in unity and do not contradict each other.

4.Cooperation: The annual business plan and the overall budget management cooperate with each other to form a complete plan and budget management role, and the overall budget management can only be established on the basis of a rigorous and meticulous annual plan, and the budget can be truly practical and effective.

Business plan, overall budget and performance management are an important part of the combination of enterprise strategy and business control system, and are the three main lines of management to implement the business objectives of the enterprise

I didn't overspend because of the high budget.

Operating budget (operational

budget) refers to the budget for the various activities that take place in the daily life of the enterprise. It mainly includes sales budget, production budget, direct material procurement budget, direct labor budget, manufacturing cost budget, unit production cost budget, marketing and management cost budget, etc. Since sales are the basis of the plan, and the enterprise mainly relies on the income obtained from the sale of products and the provision of labor services to maintain the expenditure and profit of operating expenses, the sales budget has become the basis of budget control.

The production budget is prepared according to the expected sales volume in the sales budget, according to the product variety and quantity. After the production budget is prepared, it should also be based on the expected sales volume of the quarter, through the balance of the production capacity to discharge the production schedule of the morning hall quarter, or called the production plan outline, on the basis of the production budget and the production schedule, you can prepare the direct material procurement budget, direct labor budget and manufacturing cost budget. These three budgets constitute statistics on the production costs of enterprises.

The budget for marketing and management expenses includes various detailed items of expenses that are expected to be incurred outside the scope of manufacturing business, such as sales expenses, advertising expenses, transportation expenses, etc. For enterprises that implement standard cost control, it is also necessary to compile a budget for the production of Liang Zhao in the hidden system of land slag.

Financial budget is a general term for a series of budgets that specifically reflect the expected financial status and operating results of an enterprise in a certain budget period in the future, as well as value indicators such as cash receipts and expenditures, including cash budget, estimated income statement, projected balance sheet and projected cash flow statement.

1. The scope is different.

The scope of the plan is broader, including goals, ways to achieve them, and directions of action.

The scope of the budget is relatively narrow, and it mainly stipulates the amount and amount of state fiscal revenue, the purpose and quantity of fiscal expenditure, and belongs to the scope of the plan.

2. The characteristics are different.

The plan has the characteristics of pertinence, foresight, first shouting, universality, purpose, clarity and efficiency;

Budgets are quantifiable and executable, and they must be aligned with the company's strategy or goals.

3. Different classifications.

1) Plan. From the perspective of the importance of the plan, the plan can be divided into strategic plan and operation plan;

According to the time limit of the plan, financial personnel are accustomed to dividing the investment period into long-term, medium-term and short-term;

According to the clear indicators of the plan content, the plan can be divided into specific plan and guiding plan;

2) Budget. According to the different content of the budget, it can be divided into operational budget (i.e., operating budget), special decision-making budget, and financial budget.

In terms of the length of time covered by budget indicators, enterprise budgets are divided into long-term budgets and short-term budgets.

The operating budget refers to the budget for various activities that occur on a daily basis. It mainly includes sales budget, production budget, direct material procurement budget, direct labor budget, manufacturing cost budget, unit production cost budget, marketing and management cost budget, etc.

Generally speaking, the most basic and hand-held key part of the operating budget is the sales budget, which is a formal and detailed description of the sales budget. Sales** is the basis of the plan, and the business mainly relies on the revenue provided by the sale of products and services to maintain operating expenses and profits, so the sales budget becomes the basis of budget control.

Summary. Our definition of enterprise budget Enterprise budget is a series of plans and plans that reflect the production and operation and financial results of the enterprise in a certain period of time in the future in various forms such as value and physical objects on the basis of scientific production and operation and decision-making. The comprehensive budget management of the enterprise is to take the strategic goal of the enterprise as the starting point and the market demand as the guide, and establish a budget management system involving all aspects of the production and operation of the enterprise.

The overall budget includes the operating budget and the financial budget, which concretizes the business objectives of the enterprise.

Hello, glad to answer for you! The overall goal in the preparation of the budget is the right one for the company's current business plan.

Our definition of enterprise budget Enterprise budget is a series of plans and plans for the production and operation and financial results of the enterprise in the future with a positive period on the basis of scientific production and operation and decision-making. The comprehensive budget management of the enterprise is to take the strategic goal of the enterprise as the starting point and the market demand as the guide, and establish a budget management system involving all aspects of the production and operation of the enterprise. The overall budget includes the operating budget and the financial budget, which concretizes the business objectives of the enterprise.