Analysis of budgeting and budgetary performance in private sector: The case of Picfare Industries Industries Group of Companies
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The study explored the analysis of budgeting and budgetary performance in Picfare Industries Group of Companies. The objectives of the study were; To examine the procedures and supportive guidelines followed in preparing the budget, analysis the trend of budget performance from the year 2011- 2014, and determine the contribution of budget in the financial performance in Picfare Industries Group of Company. The study used cross sectional descriptive survey design because it ably facilitated the collection of data from the different strata of respondents and helped the researcher to get the individual characteristics of the variable under study. The study used both primary and secondary sources of data. A self-administered Questionnaire and interview guide were used to collect data and analyzed using a statistical package for social sciences (SPSS) software. Data were presented into tables, graphs and charts for easy analysis and discussion of findings The study findings indicated that budgeting process starts with identification of financial objectives at departmental level and it end up with monitoring, adjustments and providing feedback for the necessary corrective measures. Also the study indicated that Picfare Industries is experiencing negative variance in its budget trend for each financial year and lastly the study revealed that budget and budgetary performance contribute much to the effectiveness of the organization. The study concluded that in order to enhance the financial performance of Picfare Industries there must be proper control and management of the organization’s budget. The study therefore; recommended that in order to enhance performance budgetary performance need to be done from the beginning of the budgeting process until the end of the budget implementation and formulation of the new budget.