THE INFLUENCE OF BUDGETING ON BUSINESS PERFORMANCE MEASUREMENT
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THE INFLUENCE OF BUDGETING ON BUSINESS PERFORMANCE MEASUREMENT
This study aims to: (1) investigate the impact of budgeting on business performance measurement, (2) identify key budgeting practices that enhance performance measurement, and (3) evaluate the benefits and challenges of integrating budgeting with performance measurement. A survey design was employed to gather data from performance managers and financial analysts. Using Taro Yamane's formula, a sample size of 377 participants from service firms in Port Harcourt was determined, ensuring comprehensive insights. The service sector was chosen for its dynamic business environment and need for accurate performance measurement. The reliability coefficient score of the survey was 0.86. Findings indicate that effective budgeting significantly enhances business performance measurement by providing financial frameworks for setting performance targets, monitoring progress, and evaluating outcomes. Recommendations include integrating performance measurement processes with budgeting cycles, providing training on effective performance-based budgeting techniques, and continuously monitoring and adjusting budgets to ensure alignment with performance goals.
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