Budget Management and Project Performance, A Case Study of Equity Agency Banking Project

Abstract

Budgeting and accounting are critical components that must interact to achieve the goals and objectives of an organization. Budget acts as financial management tool used to measure the actual and forecast against the budget throughout the planning process, it also assists in monitoring and controlling of current performance by providing early warning of deviations from the plans and analyses the anticipated versus actual results.Budget provide a basis for directing and evaluating the performance of banks. Modern budgeting is best placed when performance management is integrated with known financial outcomes which are frequently re-forecasted on budget and linked to the analysis of performance trends. This will ultimately help banks not lose their control and accountability mechanisms.