New management accounting techniques into budgeting process : The case of Vietnam Bank for Agriculture and Rural Development
Luong, Thi Thuy Linh (2014)
Tampereen ammattikorkeakoulu
2014
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2014052710271
https://urn.fi/URN:NBN:fi:amk-2014052710271
Tiivistelmä
The commissioner of this thesis is Vietnam Bank for Agriculture and Rural Develop-ment (Agribank) – Uong Bi branch. With the advantage of being located in one of the biggest economic zones in the North of Vietnam, it has a huge business potential. How-ever, as there are more than 10 other commercial banks operating in the same area, the market competition is high and it is crucial for Agribank to search for methods to im-prove their competitive advantages in all fields.
One of the fields is internal management which is assisted closely by different manage-ment accounting techniques. Budgeting is known as one of the most important tools of management accountants - one of the techniques that all companies could not survive without. It takes part in a company’s business from the forecasting stage until the post-production which is performance evaluation. Hence, a good budget could contribute significantly to a company to achieve its desired results.
However, there has been decades that practitioners and researchers raising criticisms that instead of benefits, budgeting actually brings barriers and instead of supporting, it actu-ally prevents companies from developing. The main aim of this thesis was to determine potential areas for improvement in budgeting process at Agribank- Uong Bi branch and based on that, combine with author’s academic knowledge to suggest guidelines for some possible applications. Data was collected from a various sources such as internal documents, different literature resources, staff interviews or the author’s personal obser-vation. Qualitative research was the main method used in this project. After considera-tions, theories of Rolling Budgeting, Activity- Based Budgeting and Beyond Budgeting have been chosen to be the theoretical base for the guideline. However, due to the spe-cific nature of banking industry in Vietnam generally and Agribank- Uong Bi branch particularly, some selected parts of those theories have been modified and tailored to be more practical and suitable to the case.
This work serves as a guideline for improvement and renovation in budgeting practices in the commissioner' case. This guideline is just a starting point. After a trial time of ap-plication, if those techniques appear to be beneficial for the company, further research should be conducted to increase the details and complexity of the system. Hence, those budgeting approaches could be utilized to the fullest.
One of the fields is internal management which is assisted closely by different manage-ment accounting techniques. Budgeting is known as one of the most important tools of management accountants - one of the techniques that all companies could not survive without. It takes part in a company’s business from the forecasting stage until the post-production which is performance evaluation. Hence, a good budget could contribute significantly to a company to achieve its desired results.
However, there has been decades that practitioners and researchers raising criticisms that instead of benefits, budgeting actually brings barriers and instead of supporting, it actu-ally prevents companies from developing. The main aim of this thesis was to determine potential areas for improvement in budgeting process at Agribank- Uong Bi branch and based on that, combine with author’s academic knowledge to suggest guidelines for some possible applications. Data was collected from a various sources such as internal documents, different literature resources, staff interviews or the author’s personal obser-vation. Qualitative research was the main method used in this project. After considera-tions, theories of Rolling Budgeting, Activity- Based Budgeting and Beyond Budgeting have been chosen to be the theoretical base for the guideline. However, due to the spe-cific nature of banking industry in Vietnam generally and Agribank- Uong Bi branch particularly, some selected parts of those theories have been modified and tailored to be more practical and suitable to the case.
This work serves as a guideline for improvement and renovation in budgeting practices in the commissioner' case. This guideline is just a starting point. After a trial time of ap-plication, if those techniques appear to be beneficial for the company, further research should be conducted to increase the details and complexity of the system. Hence, those budgeting approaches could be utilized to the fullest.