Budget control represents the phase of monitoring and examining budgeting. A distinction must be made between the following types of budget control:
The self-control of the budget, which enables quick adjustment measures and learning processes for future information acquisition. It is necessary, but often cannot withstand the demand for neutrality and objectivity.
The external control of the budget, which is also essential, since self-controls are subject to subjectivity and the risk of manipulation. Basically, it should be measured in such a way that employees remain motivated and prepared to take risks.
The budget control process can be as follows:
Table of Contents
Determination of the control standards
Determination of the control standards, ie both the control objects (flow and stock sizes) and the forms of appearance (quantities, times, values, qualities).
Capture the actual results
Acquisition of the actual results, ie monitoring of the actual values by the controller. Basic as-is information is to be determined, which is recognized by all those involved.
Determination of deviations
Determination of deviations, ie carrying out target / actual comparisons, e.g. B. in a cost budget the comparison of target and Actual costs.
Analysis of the deviations, ie the search for the causes of the respective problem, e.g. B. when exceeding or falling below certain tolerance values of the budget.
Control measures are to be derived from the results of the budget control, especially if the target values deviate negatively from the actual values.