Budgeting and budgetary control practices at Multi Credit Savings and Loans Company Limited
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Date
AUGUST, 2015
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Abstract
It appears that many business entities including Savings and Loans Companies have performed poorly of late due to the fact that they lack an efficient and effective Budget and Budgetary Control system to adequately allocate resources to reach the attainment of their goals and maximize performance. It is against this that the researcher carried out an investigation into the Budgeting and Budgetary Control Practices of Multi Credit Savings and Loans Limited. The study considered such issues as the budgeting technique the company has in place, their level of compliance to Best Standards as well as the problems they are faced with the use of the budget and budgetary control. Empirical literature in related field was reviewed. Questionnaire and interview guide were the prominent apparatus used to gather data. Data gathered were analysed with SPSS and ANOVA (for inferential analysis). The study revealed that Multi Credit Savings and Loans Company Limited have a budgeting and budgetary control system in place and they do not downplay on its importance helping the company to keep pace with the changing business complexities and gain competitive advantage. Their budgeting and budgetary control system complies to a large extent with best standards. However, not all the employees are involved in the budget development process and it is recommended that Multi Credit Savings and Loans Company Limited involve all staff in their budget development system and also run regular training on the use of the budget and its benefits to their operations. Additionally, the budget should be realistic and also the budget review should be strengthened. Furthermore, internal controls must also be strengthened and there should also be application of information technology tool in the budgeting system.
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A dissertation submitted to the Department of Accounting and Finance-KNUST School of Business in partial fulfilment of the requirement for award of degree for Master of Business Administration (Accounting),