Abstract
The main characteristics of the business conditions of today's companies are frequent and intensive changes. The dynamic business environment of modern companies requires a new way of management that involves an implementation of new management models, methods, techniques and instruments that are adapted to the modern environment and able to respond to challenges and solve problems that arise in new business conditions. The aim of the paper is to describe the specifics of driver-based budgeting, as one of new management instruments. In comparison with traditional budgeting, driver-based budgeting possesses multiple advantages for companies that enable responding to changes in business environment in a more agile way. These advantages, as well as some perceived difficulties with its implementation in companies are described in the paper. The results of the paper contribute to the further development of the theory and can be an incentive for future research, as well as basis for making recommendations and practical instructions that could help companies improve their budgeting system.
Highlights
Globalization and the rapid development of information and telecommunication technologies over the last decades have led to significant changes in the business environment of the companies
The integration of non-financial data into the budgeting process enables companies to implement predictive planning since managers at operational level, as well as financial managers, are able to model resource requirements, capacity constraints and costs, and to create a dynamic budget which is suitable for near real-time forecasting [2]
Since changes of business conditions represent one of the main characteristics of modern business environment, the process of planning and budgeting needs to be redesigned in order to support companies to efficiently adapt to new circumstances
Summary
Globalization and the rapid development of information and telecommunication technologies over the last decades have led to significant changes in the business environment of the companies. These changes required the adjustment of a large number of business segments and management instruments, including budgeting. The paper describes driverbased budgeting, one of the contemporary budgeting and planning tools developed to overcome the shortcomings of traditional budgeting. This budgeting approach is oriented towards making main budgeting activities, like collection of data, consolidation and reporting, more simplified and faster. After reviewing the papers and selecting those that provide valuable information on the research subject, the step of the methodological procedure included highlighting the key results obtained by the authors of the selected articles and their systematization in a way that allows the identification of key findings in the studied area, as well as practical instructions
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
