Analysis Of The Budget And Budgetary Control System And Their Deficiencies At Business Enterprises In Lesotho

This study aims to provide a deeper understanding of Bashoeshoe Pele budgeting and budgetary control system.The study is carried out in order to assist the organization in identifying deficiencies with the budget process and the budgetary control system and ways of improving them.This will be accomplished by doing a thorough case study of Bashoeshoe Pele.There is an increased number in business organizations that have shut down or ran out of business due to implementing weak budgetary control system or not providing corrective measures for the deficiencies that exist in their budgetary system hence the need to conduct this study.The first chapter shows the background of the selected topic,research significance,contents of the research study and the research methods used.Chapter 2 includes the theoretical framework of the research,relevant theories and concepts.As well as providing a better understanding of budgets and different stages in the budgeting process and the budgetary control system as well as its deficiencies.Chapter 3 shows the overall budgeting setting and budgetary control practices of the company.As well as the effectiveness of the budgeting and budgetary control system at Bashoeshoe Pele.Chapter 4 identifies the deficiencies of the budget process ad budgetary control as well as the reasons for those deficiencies.Chapter 5 is where a conclusion is drawn based on the findings of the case study and also where the research questions are answered.It also includes the recommendation section on what the company can do to improve the deficiencies of the budget and budgetary control.The study’s findings indicate that there are deficiencies that senior managers need to address in order to improve their budget and budgetary control systems such as;budgets are seen as pressure tool;budget variances arise due to poor forecasting;budgets are reviewed and updated infrequently.Some of the remedies that the company could implement are automate other parts of the budgeting process,increase the frequency of budget reviews,develop budgets that rewards collaboration and incentivizes departments to work together to achieve goals,use customer feedback to identify value creating for meeting value creation goals,invest in employee training and development,use accounting and budgeting software.