The pros and cons of budgeting system within economic entities

Abstract

The budget is a key instrument of management control. Today it is found that all businesses or organizations, except perhaps some craft enterprises, establish a budget. The purpose of this research is to find solutions for increasing the efficiency of budgetary system within economic entities. The first part of the article highlights the advantages of implementing budgets and budgetary control in enterprises. The analysis continues to highlight their criticism. The last part of the article proposes measures and actions that should be taken to limit the negative aspects and to achieve an efficient budget system, so that the budget to be conceived as a management tool, integrating into a broader overview performance assessment. Key-words: The budget is a key instrument of management control. Today it is found that all businesses or organizations, except perhaps some craft enterprises, establish a budget. The purpose of this research is to find solutions for increasing the efficiency of budgetary system within economic entities. The first part of the article highlights the advantages of implementing budgets and budgetary control in enterprises. The analysis continues to highlight their criticism. The last part of the article proposes measures and actions that should be taken to limit the negative aspects and to achieve an efficient budget system, so that the budget to be conceived as a management tool, integrating into a broader overview performance assessment.