BUDGETING AND BUDGETARY CONTROL AS THE METRIC FOR CORPORATE PERFORMANCE
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Budgeting and Budgetary Control is the thrust of this article. It tries to examine the practice of
budgeting and budgetary control in corporate organizations and its merit as a predictor of
corporate performance. Budgeting involves the setting of targets and monitoring of performance
against those targets. For an organization to be successful, it must plan its financial activities
well in advance through the institution of effective budgeting and budgetary control measures. .
Modern business organizations are increasingly appreciating the importance of budgeting and
budgetary control in the achievement of goals and objectives. Making effort to achieve
operational targets and objectives without effective budgeting and budgetary control measures
would be tantamount to a blind pursuit of goals. Great majority of firms are guilty of preparing
initial budgets only to over-shoot the budget limits during the implementation stage due to poor
control budgetary control measures. Forward-looking organizations today are determined to go
the extra mile through achieving competitive dominance over their competitors and posting
super profit figures. Good budgeting and budgetary control measures is the key to achieving this
objective. The study advices top management of modern organizations to take budgeting and
budgetary control issues seriously as no appreciable success can be achieved with haphazard
budgeting and budgetary control. The methodology adopted in this article was descriptive
approach involving the study of budgeting and budgetary control activities in 30 organizations
selected from a number of States in the Federation. Best practices in budgeting and budgetary
control in the 30 organizations were skimmed and synthesized to form the basic data for writing
the article.
Keywords
H Social Sciences (General)