Control Practices in Budgetary Process

Budgetary challenges and control practices

Budgeting process involve various stages that require all stakeholders to work together to ensure success is achieved in the business. There are a number of controls that firms need to put in placeto realize results that were projected.

Examples of control practices

Establishing appropriate standards; this is an example of effective control practice in budgetary. Upper level management should allow subordinates to submit budget proposals for review based on given standards. This will help produce a comprehensive budget. Lower level managers will not feel the top management has ignored them thus working towards organization objectives.


Management support is also a practice that ensure effective control , management should support departments and divisions to defend their budgets and allow participation in budget making. Users should also be allowed to give views and edit their budgets to ensure smooth running of departmental activities.


This is also a control practice in which it motivates low level managers to achieve set objectives of the organization even in situations of financial constraints. Personal rewards reduce the challenge of poor performance.

Other controls include separation of duties, setting individual goals and responsibility accounting

Types of challenges that exist in monitoring and maintaining budgetarycontrols

Employee Oriented (Employee acceptance); this one is very important in any budgetary process. Lower level managers and employees who do not support any given budget are usually seldom cognizant of set goals during their daily work.

Goal Oriented (Setting goals); this challenge comes in play when departments are allowed in providing their budgets. Departmental managers concentrate more on department objectives and ignore organizational goals thus hindering result oriented budgeting.

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