Should businesses abandon the budgeting?

Abstract

The budget, which is an important management tool of businesses, has been tried to be able to meet the needs of today’s businesses with new approaches developed over time, such as developing technology, change of business circles and changes in business processes. Within this context, new approaches to budgeting have been developed. Beyond budgeting, better budgeting and advanced budgeting have been the most remarkable approaches to budgeting. These approaches emphasize that the traditional budgeting cannot meet the needs of today's businesses and that development and businesses must meet their strategic goals and objectives or that budget management should be abandoned altogether with the development of new management approaches and adaptive management processes to which the authority is transferred. In this study, traditional budgeting approach was compared with beyond budgeting approach which emphasizes that the existing budgets of the enterprises should be aboli Taking this comparison into account, the question that whether companies should abandon traditional budgeting approach is answered. The beyond budgeting approach, which is prominent in use by institutional entities with decentralized management considerations, appears to be less favored by businesses that commonly use the budget for planning, coordination, performance measurement and control purposes.