The Budgetary Control System

The budgetary control system is a financial management process where an organization sets planned income and expenses (budgets) for a specific period. It regularly compares actual spending and revenues against these plans to identify variances. This comparison helps managers make informed decisions, control costs, and ensure the organization stays financially on track. Essentially, it acts as a financial roadmap, guiding the organization toward its financial goals while allowing adjustments if the actual performance deviates from the budget.