BUDGET AND ORGANIZATION MANAGEMENT

Abstract

Historically, budgets have played a key role in management control. However, recently, budgets have become the subject of considerable criticism and debate. The goal of developing and implementing a budgeting system is to create an instrument for the efficient organization of the activity management of an institution and its structural units by planning, controlling incomes and expenses, and analyzing economic and financial indicators. Methodical approaches to the budgeting-based organization of internal control determine the tasks and subtasks of management that construct an efficient system for making, implementing, controlling, and analyzing managerial decisions. Some argue that budgeting problems stem from how budgets are used, while others say that the budgeting process needs to be revised, as a result, a call for systematic examination of issues against empirical evidence. Nevertheless, most firms’ budgets continue to be used for control purposes and are perceived to be value-added. While problems exist with budgets, organizations are adapting their use to account for these problems rather than abandoning budgets altogether.