Weaknesses of Traditional Budgeting


 
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Weaknesses of Traditional Budgeting
Anneke Zwart, Student (University), Netherlands

Fraser and Hope mention the main weaknesses of annual (traditional) budgeting that gave rise to the development of thinking beyond budgeting:
1. Time Consuming - Budgeting takes a lot of time. Average time needed for budgeting lies between two and four months according to the authors.
2. Costly - Despite developments of high quality and fast computer networks, the process of budgeting still remains to be expensive.
3. Useless - After visiting several companies, it appeared that many companies perceived the results of budgeting differently. Budget gave some companies more control, while in other companies budgeting was perceived as being unimportant and not meeting any needs.
4. Bureaucratic - The continuous pressure on prices of goods and services asks for decreases in structural costs and in bureaucracy.
5. Frequency - Initially changes in the competitive environment resulted in budgeting more often in a year, but its only result is a rising workload th... Register
 

   

   

   

 
On Weaknesses of Traditional Budgeting 3: Now Useless
KALOGO PAUL, Student (University), Uganda
 

   

   

 
Budgets... They Have a Place But When Misused!
Donald Liveley, Teacher, United States
 

 
Weaknesses of Annual Budgeting: 8. Perspective of Cost Control
Hakvoort, Business Consultant, Netherlands
 

   

   

   

 
All Mentioned Weaknesses do not mean Budgeting is Useless
Sergey Baltin, Manager, Russian Federation
 

 
Further Weaknesses of Traditional Budgeting
K.Narayana Moorthy, HR Consultant, India
 

 
Waste of Energy, Causes Sandbagging
JC de Jong, Director, Netherlands
 

   

 
Budgeting-Rocket Science?
Istvan Szeman, Consultant, Hungary
 

 
Missing Process and Software Support
Istvan Szeman, Consultant, Hungary
 

 
Weaknesses of Traditional Budgets
NANG Theophile, Student (University), Cameroon
 

 
Weakness of Traditional Budgeting
Dobson, Project Manager, Canada
 

 
Weaknesses of Annual Budgeting
RUBEN ACOSTA, Manager, Mexico
 

 
Lack of Process and Software..
Donald Liveley, Teacher, United States
 

 
Weaknesses of Traditional Budget, 3 Useless
Adam Mohammed Baba, Director, Ghana
 

 
Weaknesses of Traditional Budgeting
K.Narayana Moorthy, HR Consultant, India
 

 
This is a Good Observation
Nita, CEO, United States
 

 
Careful with the Effectiveness of Numbers
ADAM SAID, Student (Other), Cameroon
 

 
Weaknesses of Traditional Budgeting
Michael T Iorngurum, Manager, Nigeria
 

 
Weaknesses of Traditional Budgeting
George Kerstholt, Strategy Consultant, Netherlands
 

 
Weaknesses of Traditional Budget
K.Narayana Moorthy, HR Consultant, India
 

 
Weaknesses of Traditional Budgeting
Istvan Szeman, Consultant, Hungary
 

 
 

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