The effect of budgetary controls on the financial performance of medium-sized enterprises: Case study Brovard hotel

Abstract

The study was set to examine the effect of budgetary controls on the financial performance of medium sized enterprises in Masaka District, a case study on Brovard Hotel. The review of Literature was collected using the set objectives which were, to identify the different types of budgetary The study was set to examine the effect of budgetary controls on the financial performance of controls used by medium enterprises, to find out the challenges faced with the budgetary control systems and to find out solutions to the challenges faced with the budgetary control systems of Brovard Hotel in Masaka District. To achieve the set objectives, the tools were used in study for collecting data and these involved uses of questionnaires, interviewing and secondary data got from various books and from the internet which made data collection and analysis easier. Simple random sampling was used to get a representative sample of twenty five members. The study involved 25 respondents of which 9 were males and 16 were females. Key findings transformed into themes for analysis and presentation of data. The study revealed that majority of the employees in Brovard Hotel are females and the minorities are males. Majority of the employees had worked in Brovard hotel for one to five years. Research further more found out that the major challenge affecting budgetary control systems of the enterprises is failure to communicate strict expectations from the employees which leads to poor performance. However this could be solved by involving all persons in framing and implementation of budgets in order to ensure success of budgetary controls and also ensuring proper communication of what is required to be achieved and how it can be achieved. The study therefore; recommended that Brovard hotel should involve all persons in the framing and implantation of budgets in order to ensure proper success of these budgetary control systems.