Implementation of Budget and its Preparations in the Private Organization, Ghana

Abstract

The study was conducted to know about implementation of budget and its preparations in the private organization (Ahantaman Rural Bank Ltd in Ghana). The purpose of the research was to emphasize the importance of budget and budgetary control and to investigate whether this important tool for focusing on corporative objective is being used by private sector organizations. Specifically the study seeks to investigate the budgetary process in the selected private company, Assess the implementation and monitoring process of budgets in the selected organization, Make recommendation for efficient budget and budgetary process in the selected organization. To address the issue of delay in budget implementation, the researcher suggests that, the appropriate persons are to constitute the budget committee being the head of the various departments. In their absence, the next in command should represent them to ensure proper coherence among the budget staff. There should be an authority in place to check proper and faster implementation of the budget. This will move budget implementation faster as different group of people are involved and can also serve as a check on one another. In so doing, the budget committee members will be somehow independent of what happens at their various departments.

The authority should institute training programmes for budgeting officers. Such training should cover both senior and junior staff. This will update their knowledge and facilitate their workAgain, the instituted budgetary control system in the Authority should also go beyond identifying deviations and taking corrective actions. Where deviations usually occur, the departmental head responsible must be called upon to explain the causes and must be put on track. If deviation still persists, some disciplinary action must be taken against them. It will bring some improvement. Lastly, there should also be in place some reward scheme for budget officers who perform and discharge their work with proficiency. This will serve as a motivational tool for budget officers and even inspire others to work hard.