Question

What are the guidelines that should be followed if budgeting is to be associated with performance monitoring?(in Australian Accounting environment) Discuss in 120 to 150 words.

Answer 1

For ensuring monitoring under budget strict guidelines have to be followed to be more productive and to successfully maintain the monitoring system in the budgeting process.
For successful budget allocation and monitoring ensuring the efficiency as well as effectiveness of the total usable resources in the budgeting system should be done on the primary basis. This would definitely enable a proper budget management to measure the performance of the overall budgeting. Making good business decisions while having an understanding of the specific situation is also an essential part for monitoring performance of the budget. Demonstration of accountability is essential to have a look at the performance of the overall finance involved in the budget. And the last factor is to take the remedial action when any problem is spotted into the budgeting performance. This type of action would definitely enable any organisation to maintain specific performance of the budget and improve the overall situation.