Research Question

Before the adaptation of beyond budgeting, Food Corp was facing issues regarding the internal benchmarks arising from the organizational structure and the pressure to provide the target outcome to the upper-level management. These factors contributed to the implementation of the static and complete financial targets. Th Executive Summary
In this report, two different cases of Food Corp and Park Nicole has been studied with regard to the change in the budgeting accounting management system. Both of the companies operate in the dissimilar industry, however facing similar nature of issues. The company has found ineffective practices in their system created through traditional budgeting system. To eliminate the complexities and turbulence the research studies have suggested to implement the beyond budgeting software. Food Corp incorporates the beyond budgeting system to implement REP system. On the other hand, Park Nicole has implemented the beyond budgeting framework to efficiently incorporates the lean process helping in reducing waste. A detailed analysis has been presented in the report narrating the strength and differences of the organization created through a change in the budgeting system. The finding of the study has been discussed with regard to the Australian organizations having complexities and problems in their structure.

Introduction

The following assignment has been designed to provide a brief insight into the budgeting process used in different organizational setting to gain efficiencies in its operation. According to the Boggles, (2016) budgeting is the crucial management components in the accounting paradigm. It is essential for every set of firms dealing in monetary benefits. To gain the competitiveness and diversification, managers are using a blend of budgeting management tool to effectively forecast the demand and challenges impacting the development of the company, managing the day-to-day activities and duties and developing channels to motivate the employees. Management of budget creates agility in organizational practices, thus providing benefits in terms of less expenditure and high output. The following report will be analyzing the budgeting process by reviewing the journal’s articles of budgeting accounting concepts applied by the organization operating in a different environment. The two set of the organization is selected such as Food Corp operating in agriculture food industry and Park Nicole working in the healthcare sector. The research questions and objectives of both the studies will be studied in regard to the budgeting conception. A comparative analysis will be provided illustrating the similarities and diversification in the budgeting outputs of the selected companies. Furthermore, the findings will be applicable to the Australian firms discovering the opportunities to improve their budget management efficiencies.
2. Budgeting Accounting Management System and its Components
2.1 Budgeting Accounting Management System
The budgeting is the highly applicable accounting management tool used for analyzing the trends through prediction and preparing a plan to combat the potential challenges and acquire the opportunities. Budget is a systematic plan incorporating several stages such as setting a target, defining approaches to achieve the target, allocating time and cost to each target and achieving the target in the provided time frame. The main task of the budgeting is to create coordination in the organization (Kara, Stefan, and Daniel, 2014). The budgeting concepts were founded in early 2000 by the market leader multinationals like General Motors, Siemens, Du Post DE Mourner, and other companies. It is said to be the market changer administration tool achieving success in its early phase. It has provided agility and efficiencies in accounting process while increasing the reliability and authenticity of the financial recording system. In an exceedingly complex firm structure, budgeting provides an efficient means of coordination and communication. Despite its benefits, Budgeting concepts faced the criticism regarding its time-consuming nature and inability to cover every possible dimension in its plan. The criticism towards the traditional budgeting has paved a way for new development, thus introducing the modern concepts of better budgeting and beyond budgeting (Cardozo, 2014).

 Better Budgeting and beyond Budgeting Concepts

The better budgeting provides opportunities to restructure and reintroduce the budgeting process. Whereas, beyond budgeting has provided a new insight into budgeting administration by changing the process on every level. In a layman term, the beyond budgeting can be explained as the comprehensive extermination of budgeting plan and budgets. Better budgeting and beyond budgeting has help the managers to remove the slacks (often called as budgetary slack) and decapitation (Begun, and Amide, 2015). The empirical study has promoted and supports the incorporation of either of the concepts in the organization financing system. In an organization, the traditional budget management and better budgeting help in creating an inclusive coordination in departments through commissioning the strategic plan of budgeting. However, the beyond budgeting emphasize on developing the coordination through the external forces of the market. In a complex organizational structure, firms do often create coordination by increasing the interaction on a personal level and agreements on the departmental level (Martin, and Osbert, 2015).

Comparison and Similarities between Traditional Budgeting and Beyond Budgeting

The research study has supported the similarities find among the traditional and better budgeting theoretical grounds. In both approaches, coordination is developed through budgetary plan within the organizational division. However, the dissimilarity has been noticed in terms of reach ability and depth of the plan. Traditional budgeting prepares similar financial strategies and plans for every operation. Whereas, the better budgeting approach focus on developing the plan and its tactics in the division to cater to the challenges aroused due to complexities and manipulation. The better budget planning helps in reducing the sensitivity of the problem and level of detail. The following criteria enable the company to develop the tactics for growth in terms of the long-term plan and short-term plan to increase the organization coordination and profitability (O’Grady, and Akron, 2016). In terms of the complexities created through the internal and external environment, both of the budgeting technique shows robustness in the development process. Specifically, the traditional budgeting process shows vagueness in its approach if the complexities are said to increases with time. In contrast to the traditional budgeting, better budgeting provides enhance regimes to control turbulence. However, it is lower to create coordination by the mean of agreements through groups or markets in extremely dynamic surroundings (Fitzgerald, and STOL, 2014

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