Budgeting Your Company into A Corner How Budgets Shackles A Company

The concept of budgeting has been the subject of debates between scholars in the business
world for decades. This paper tends to shed light on the definition of budgeting. It impacts
whether it be positive or negative on a company, the numerous purposes of budgeting and how
the concept has evolved throughout the years in a unique way that has never been tackled
before. Various scholars and business minds have contributed in the development of this
concept for it to reach a point where it was once thought as an essential part of every company
whether it be a large multinational company or a small family-owned business; everything
needs to be budgeted for from the first screw used to the planned expansion into new markets,
and even the yearly objectives of employees. This paper will evaluate the purposes of a budget
while clearly stating the limitations of each one of them and providing primary and secondary
data and research, along with interviews with top financial managers with years of experience
to back up the hypothesis provided.