RESEARCH PROPOSAL

To what extent a budgeting system and budgetary control is being used in SMEs.
Introduction
The world is facing rapid pace of technological change and marketing innovations along with increasing competition in the business world as well as high consumers requirements. With such complexity of business operations, only those organizations that are able to perform better and innovate while taking into consideration consumer tastes and requirements are able to survive. These can be done using a proper budgeting system. Companies that do without a proper budgeting system run the risk of being considered poorly managed (M.C. Jensen, 2003). A budgetary system involves activities within an organization, which have to be coordinated by the preparation of plans of actions for future periods. These details plans are usually referred to as budgets. Budgets play a critical role in coordinating disparate parts of a company so that their actions lead to harmonious interactions, high output, low cost, high quality, low inventories and satisfied customers (M.C. Jensen, 2003). But everything does not always work as planned. The actual results may not always equal to what has been budgeted due to changes within a business which may be caused by the internal as well as external environment. These may lead to high cost, low quality, missed opportunities and dissatisfied customers. To avoid these deviations budgetary control is used. Budgetary control is the process of using budgets to monitor and control the performance of an organization. This is done by comparing the budgeted values with the actual values as they occur during the year. The information or feedbacks obtained through budgetary control are very important. They have to be suitably analysed. These informations will be used to improve the business performance. In other words, budgetary control is part of the overall system of responsibility accounting within an organization.

Objectives of Study
To understand what is a budgeting system and its usefulness To perform a survey in the SMEs to find out whether the firms are using a budgeting system and budgetary control to improve their performance. To find out whether the budgeting system used is a proper one and whether the budgetary control is being used effectively. To suggest ways how a budgeting system and budgetary control can be used to improve performance.

Research Methodology
A survey will be carried out in a sample of Small Medium Enterprises where the data will be collected through Questionnaire asking about whether budgetary system and budgetary control is being used or not and whether they are being used effectively.