https://sites.google.com/view/vnap/accounting-principles?fbclid=IwAR3IIpV9GzGOexlhL40YG884J9m3vv-zEdOqwfXCpYGegsohJYL8eJ_c9o
Discuss the benefits and limitations of budgets and budgetary planning and
control for an organisation
An organized foundation for financial management is provided to businesses via
budgets and budgetary planning. Setting goals, helping with resource allocation, and
making performance review easier are some of the benefits. Organizations may
improve coordination and communication while ensuring alignment with broad goals by
utilizing budgets. Budgets are also a tool for financial control since they make it possible
to spot deviations and take swift corrective action when necessary. But there are
disadvantages as well, such the possibility of being rigid when it comes to adjusting to
unexpected changes, the time-consuming nature of budgeting, and the possibility of
manipulation. Budgets may also prioritize short-term objectives over long-term strategic
planning. The financial success of an organization can also be impacted by outside
variables that budgets fail to sufficiently account for. For efficient financial planning and
control, it is essential to strike a balance between the advantages and disadvantages.