Use of Budgeting as a Management Technique for Managing Resources

Use of Budgeting as a
management technique
for managing resources
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Abstract:
Budgeting is a very important activity and function of managerial accounting that is part of
over organisation and used by every organisation for allocation of different available financial
resources across various functions. Budgeting is not a one-step activity but it is a procedure that
consists of several steps that are used for proper allocation of funds for different activities. There
are various activities that have to be compulsorily performed by the top management and are
related to how these are going to affect or other functions performed by workforce. There are
some suitable standard that have been laid by organisation and according to that all the functions
of budgeting are performed. Organisations across the world are adopting the standard to properly
follow all the guidelines that are related with preparation of budget and dealing with all the
approaches related to in appropriate manner.
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Table of Contents
Abstract:...........................................................................................................................................2
Introduction......................................................................................................................................4
1) Brief discussion of the process of budgeting................................................................4
2) Budgeting process satisfying the purpose of planning, controlling and evaluation of
performance............................................................................................................................7
3) Two major practises adopted by organisation such as top down budgeting approach and
bottom up budgeting approach...............................................................................................8
4) Critical evaluation of the traditional budgeting practises as a constraint on energy, time
and creativity on formulation of budgets................................................................................9
5) Recommendations of budgets for contemporary organisations for activities such as
planning & controlling.........................................................................................................10
CONCLUSION..............................................................................................................................13
REFERNCE...................................................................................................................................14
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Introduction
Budgeting process is a very important management technique that is used for management
of the available limited resources by various organisations. Present report is based on a selected
journal article person of the budgeting process and how is it satisfying the purpose of planning
controlling and the overall evaluation of performances (Al-Mutairi,., Naser, and Saeid, 2018).
Further, there is usage of top down budgeting and bow down up budgeting as two major
approaches for the purpose of preparation of budgets. The present report is based on the topic as
a result of use of the journal paper “Digitisation of the overall budgeting process and various
determinants that is usage of business analytics and his overall effect on satisfaction of the
budgeting process.”
Based on the findings there is critical evaluation of the traditional budgeting practices and its
effect on the creativity, energy spend on the formulation of water is better to be utilised on other
different activities that are very important for every business organisation. Lastly, there are some
of the recommendations that are related with how contemporary organisations can make use of
different activities related to planning and controlling for achievement of their specific business
objective.
1) Brief discussion of the process of budgeting
Budgets are many times criticize because of the high time consumption and cosmetic related
with preparation of such method. There are many alternative related to non budgeting techniques
but the current advances that are taking place in Information Technology has led to more lasting
differences and increase in the ways for accounting and gender and budgeting in specific. There
is more data driven decision making approach that is used nowadays by organisations. Business
analytics is a tool that is very important part of the overall digitisation of the process of
budgeting examine the overall effectiveness of business analytics is journal that have been used
for the preparation of this report is based on the potential determinants of how German
companies are using overall business analytics in their budgeting process. Research it has been
conducted that there is a no much Association between the budgeting with the overall business
analytics but there has been a significant Association that has been agreed by majority of the
organisation related with the budgeting process to associate with the greater use of business
analytics.
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