BUDGETARY CONTROL

ON THE PERFORMANCE
OF AN ORGANIZATION
INTRODUCTION
◦ Budgetary control is a vital tool that assists organizations in managing their finances. It involves the
process of creating, implementing, and managing budgets to ensure that the allocated resources are used
effectively and efficiently.
◦ A budget may be a key management tool for planning, monitoring, and controllingthe finances of a
project or organization. It estimates the income and expenditures for a group period of your time for your
project or organization.
Definition and Purpose of Budgetary Control

Definition:
◦ Budgetary control involves the development and implementation of budgets to regulate the finances of
an organization.

Purpose:
◦ It aims to ensure that financial resources are used in an optimal and controlled manner to achieve
organizational objectives.
Benefits of Implementing Budgetary Control
◦ Resource Optimization
Budgetary control enables efficient allocation and use of resources, leading to cost savings.

◦ Performance Evaluation
It provides a benchmark for evaluating the performance of different departments or segments within the
organization.

◦ Goal Alignment
Helps in aligning financial goals with the organization’s strategic objectives.