University Accounting Report: Budgeting Effects on Firm Performance

This report delves into the critical role of budgeting in influencing a firm's performance, examining both its positive and negative impacts. It contrasts traditional budgeting approaches with the 'beyond budgeting' methodology, highlighting the evolution and criticisms of each. The report analyzes the findings of Libby & Lindsay's survey, focusing on the adoption and value of budgeting in North American organizations. It explores the time-consuming nature of traditional budgeting, its potential for manipulation, and its alignment with strategic goals. The report also discusses the effect of budgeting on firm's performance by highlighting the factors like monitoring, planning, coordination, control and evaluation on the manufacturing firm’s financial performance. The analysis includes a discussion of the benefits and drawbacks of budgetary control, offering insights into how companies can enhance their financial planning and control processes.