In the ever-evolving landscape of global economic integration, comprehensive budget management and performance evaluation have emerged as critical tools for enhancing enterprise efficiency and fostering development. However, Chinese enterprises face challenges in breaking through existing management bottlenecks, hindering innovation and leading to phenomena of rapid growth followed by swift decline. This paper aims to address these challenges by exploring the relationship between budget management and performance appraisal, highlighting their vital role in enterprise total value management. By aligning budgeting with strategy and operations and establishing fair performance evaluation systems, organizations can cultivate environments conducive to internal competition, fostering a corporate culture replete with entrepreneurial and innovative spirit. The study analyzes existing issues in current budget management and performance appraisal, such as imperfect systems, rigid practices, and talent shortages, proposing strategies to strengthen enterprise budget and performance management. These strategies include enhancing organizational structures, integrating resources with strategic focus, strengthening PDCA cycles, and establishing effective assessment mechanisms. By leveraging cloud platforms and big data, and actively pursuing legislative reforms, enterprises can optimize their budget management and performance evaluation systems, ultimately driving sustained growth and competitiveness in dynamic market environments.
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