Following are the main limitations or disadvantages of budgeting:
* It is difficult, if not impossible, to estimate revenues and expenses in a business enterprise realistically.
* It is not realistic to write out and distribute a company's goals, policies and guidelines to all the supervisors.
* Budgeting places too great a demand of time on management, especially to revise budgets constantly. Too much paper work is required for budgeting.
* It is difficult, if not impossible, to estimate revenues and expenses in a business enterprise realistically.
* It is not realistic to write out and distribute a company's goals, policies and guidelines to all the supervisors.
* Budgeting places too great a demand of time on management, especially to revise budgets constantly. Too much paper work is required for budgeting.
* Budgeting takes away management flexibility.
* Budgeting creates a lot of behavioral problems.
* Budgeting adds a level of complexity that is not needed.
* Budgeting is too costly, aside from the management of time.
* The managers, supervisors and other employees hesitate with budgeting.