Beyond Budgeting: The Way Forward?

Beyond Budgeting has been proposed as an influential idea that will reinvigorate management accounting contribution in business operation and performance. It is claimed that the traditional system has lost relevance with the modern business environment and is no longer satisfying the needs of managers. Budgets have been ingrained in the culture of business since their inception in the 1920s and managers will find it extremely difficult to radically shift to a system without budgets. The implications of a Beyond Budgeting system are; performance measures relative to competitors and a decentralised organisation structure. Alternatives such as the Better Budgeting techniques may be more favourable to management who desires a formal planning and control system. The Beyond Budgeting concept is still in its infancy and requires further development and practical implementation.