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Article: Inefficient budgeting costs companies dearly.
- Article from:
- Management Accounting (British)
- Article date:
- February 1, 2000
CopyrightCOPYRIGHT 2000 Chartered Institute of Management Accountants (CIMA). This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Inefficient budgeting systems and processes are consuming an average of 20% of senior and financial managers' time, increasing to 30% in some cases, according to John Fanning of KPMG Consulting. Speaking at the ICAEW's `21st Century Budgeting Conference', sponsored by Comshare, John Fanning commented, `The traditional budget and associated processes, such as strategic planning, forecasting, monthly reviews and reward processes, consume an enormous amount of management time. Unfortunately much of this time is being spent inefficiently and for very little reward. Companies must start to radically re-assess the role of the budget and its usefulness as a management technique. ...
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