Budgetary Control Process
No system of planning can be successful without having an effectual and effective system of control. Budgeting is closely connected with control. The process is further compromised by its tradition of negotiation and horse-trading. Fully 66 percent of CFO readers surveyed believe their planning process is influenced more by politics than by strategy. Indeed, says Greg Vesey, director of business systems at Texaco Inc., “planning is the most political of all the processes that fall under the finance function.” There should be enough scope of tractability to provide for someone initiative and drive. Budgetary control is an important device for making the organization more efficient on all fronts.