The major and main concern about Wallander’s quote is to explain the problems of traditional budgeting in any organisation. Wallander stated that if the traditional budget system is not updated quickly, the employees and the organisation could have major constraints in developing the professional recognition and strong financial standings in any market place (Hakin, 2018). The budgeting systems play a huge role in organisational management, controlling, and planning. Moreover, budgeting involves the development of plan which comprehensively projects the inflows and outflows of finance over required period of time. Budget capacity to distribute and arrange productive utilisation of assets through in-house correspondence along with controlling assessment and approval has made budgeting a most well-known apparatus for heads and the administration of organisations to depend on (Becker, 2016).
Wallander empahsises that the budget systems are not well-organised in general, and this outmoded system could lead business performance go obsolete as well. The modern challenges impose the facts that there is a need for reconsideration of budgeting. The outmoded system of budget causes constraining in innovation and financial risks assessment which causes limitations in discovering new opportunities. It adversely impacts the productivity level of the organisation. With the limitations of the traditional budgeting framework and the desperation of late worldwide financial emergency, there is tension on directors and pioneers to adequately devise different approaches to oversee associations for effectiveness and seriousness (Higley and Pakulski 2017). Foreseeing the potentially challenges is necessity to continuously strive and grow in today’s business world. Lack of updated consideration in regards to finance and budget could possible demonitise the high profile of any firm.
Becker, S.D., Mahlendorf, M.D., Schäffer, U. and Thaten, M., 2016. Budgeting in times of economic crisis. Contemporary Accounting Research, 33(4), pp.1489-1517.
Higley, J. and Pakulski, J., 2017. Pareto’s theory of elite cycles: a reconsideration and application. In Vilfredo Pareto (pp. 111-130). Routledge.
Sirojuzilam, M., Hakim, S. and Muda, I., 2018, January. Role of Planning and Budget to The Development of Agropolitan Area. In 1st Economics and Business International Conference 2017 (EBIC 2017). Atlantis Press.
In your view, how important is it for management takes into taking an integrated approach to budgeting? In otherworld, factor in qualitative elements or should be disregard non-financial information and take the view of what doesn’t get measured doesn’t get included in the budgeting process?