Budgeting is the most comprehensive management tool for planning and control in any organization. New management techniques which involve meeting the increasing complexities of business today in the society is budgeting, and many things, have been written and said about it in books, journals magazines and newspapers. In fact it attracts very much human material attention.
These reasons make the need for this research into the role of budgeting in private sector management very pertinent.
Budgeting is futuristic in nature. The further is subject to change while change is he only thing that is constant. Therefore, any attempt to quantitatively state the future is an approximation and then budgeting is said to be free of emotion.
1.2 OBJECTIVE OF THE STUDY
This research is aimed at accomplishment of some objectives. It will examine and highlight the roles of budgeting and will also assess the impact of inflation and other unforeseen variables on the usefulness of budgeting in the private sector management in Nigeria.
To achieve these, the research has to:
a) Ascertain the role of budgeting in private sector management.
b) Ascertain the system of budgeting in private sector management.
c) Apprise the role of budgeting in situation of frequent erratic changes.
d) Analyze the impact of the role of budgeting in private sector management.
e) Ascertain whether budgeting accomplishes its practical roles in the private sector management.
General, this project is aimed at arocising interest on the role of budgeting in private sector management in Nigeria. The aim is that enough consciousness towards budgeting will be awakened by this project to improve the effectiveness of the role of budgeting.
1.3 SIGNIFICANT OF THE STUDY
This term paper has varying level of significant various categories of its users and readers who may wish to reference it from time to time.
One significant is that it forms of a major part of the final examination of the researcher for the award of national diploma in accountancy. It also affords the researcher a better understanding and application of he subject matte of “the role of budgeting in private sector management”. This project provides beneficial insight into the nature and role of budgeting to managers; accountants, bankers and even insurers.
This will enhance effective budgeting in their respective organizations.
It also provide material guide and will therefore be of immense benefit to anybody who may wish to undertake a critical review of this work and relative topics in future.
1.4 LIMITATION AND DELIMITATION OF THE STUDY
The scope or delimitation of this research is basically on the role of budgeting, system of budgeting and how the role of budgeting is feel in the private sector management. It is also on how to accomplish the practical roles of budgeting in the private sector management.
1.5 DEFINITION OF TERMS
The following terminologies are defined to reflect their meaning in this project.
1) Role: This means the functions and duty which a person or a thing performs or ought to perform or act.
2) Private sector: This refers to as business firm or profit making concerning one person or group of persons.
3) Budget: This means estimate of probable future income and expenditure or the financial or quantitative statement prepared prior to defined period of time or the policy to be pursued during that period for the purpose of attaining a given objectives, they include income, expenditure and employment of capital. Budget period is usually one year.
4) Budget control: This is a control by the use budget.
5) Budgeting: It is used to mean that act of preparing and using these financial and quantitative statements to aid management.
6) Planning: This is the delineation of goals, predictions of potential results under various ways of achieving goals, and a decision of how to attain desired results.
7) Management: This is the process of curbing and utilizing of or of allocating an organization, dissenting and controlling for the purpose of producing output desired by customers so that the original objective are accomplished. Those who carry out the activities defined above are the manager.
8) Organizing: This is the combination and coordination of people, work to be done and physical factors into a meaningful structures that will contribute to an achievement of goals.
9) Directing: This is quenching or actualizing personnel in a way that is perceived to be necessary for accomplishing organizational goals through communication, motivation, leadership, training and personal influence.
10) Control: is action that implement the planning direction and performance evolution that provides feedback of the results.
11) Strategy: This is applying once best or tactics to complete successfully ie, competitive advantages