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ad no future of abounding it in the years to come. According to Lindsay and Libby (2007)Budgeting previously was used to create centralization and control the increasing cost in an organization but over the last 20 years budget has been extensively used for creating value of the firm, helps the managers to implement the strategy, do risk management and allocation of resources in order to run their business.

Budgeting recently has been going through a phase of evolution in order to meet the increasing needs of the organizations. According to Wallin and Ekholm (2000), approximately 60% of the organizations are trying to improve the budgeting process in their organization according to the demands of the management to bring sustainability in the value of their company. Budgeting process has changed from being traditional to more flexible and dynamic by responding to the changes in the environment. Budgeting has evolved according to the changes of the environment and thus has increasingly used as a forecasting tool. It is now have become better as it has become more forward looking and has made a very good link with the strategic planning of the organization. Especially among the fast changing environment organizations are using more of budgeting as a forecasting tool. Budgeting plays an anchor role in the organization by guiding the goals of an organization but it has become flexible and can adopt the changes along the way as defined in the budgetary statements.

According to Dugdale and Lyne (2006) around 40 percent organizations inEuropeadopt budgetary process before the end of six to four months in order to evaluate their financial performance in a year. In another research 95% percent of the financial managers have responded with the fact that budgets are a very important tool for planning, controlling and is a fair evaluation process of the firma€™s performance during a fiscal year. It is also important to know the fact that budgeting is a tool for communication and coordination among the upper and the lower level of the organization. In the last five years budgeting process had gone through several changes which had increased the use of budgeting and had enabled the firm to become successful in the years to come. Today budgeting has involved junior employees more in the budgeting process, it has provided a much more detailed analysis of the performance of the different activities in the organization and now budgets are used more than for financial evaluation but for overall evaluation of the performance of the organization.

Although the traditional method of budgeting have changed but the there is certainly no decline in the use of budgeting in the organization. There are several limitations of budgeting that are criticized by many experts in this field. According to Webber and Linder (2005) there are several limitations of using the budgeting process in an organization. The major criticism of budgeting includes that it is time consuming, the cost of maintain is too much, the information provided through budgeting is not to reliable, the information provided through budgeting is too limited, it does not add too much value and is a waste of resources and it leads to unethical or de-motivation among the employees of an organization. Many organizations despite the amount of limi本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。