Computerization Of Branch-budgetting System For Kenya Commercial Bank Ltd. Using Lotus 1-2-3

Abstract

Budgetting is a very well known concept, being a word that is believed to be almost synonymous with planning. No clear line can be distinctly drawn between the two terms, but probably budgetting can be considered to be part of the broader t.erm, planning. Every organization that is involved with finances, or spending money, invariably needs to practice budgetting, and, depending on the size of the organization and the extent of its activities, it can be a very demanding, time-consuming practice. Budgetting, an essential component of long term planning of any organization, consists of making reasonable forecasts for the organization's income and expenses based on past trends as well as variations of national and international factors that influence the organization's performance, directly or otherwise. Kenya Commercial Bank Ltd., the organization for which this project has been undertaken, has branches scattered virtually allover the country and is still expanding. The importance of long-term, accurate planning for this organization cannot be over-emphasized. Over the years, the planning and budgetting machinery has been tuned and retuned, blessed with participation of all levels of management. The bank's effective control of its staff, coupled with the long experience possessed by the planning department, makes the efficiency with which the planning process is carried out unquestionable. 1 Whereas a bigger part of the planning process requires great thought and skill by qualified, experienced and hard-working officers of the bank, there is no reason why an easier, faster and more efficient method of performing the routine and time-consuming tasks should not be sought. Kenya Commercial Bank is known to be the bank with the most extensive application of computers in Kenya, and it ts therefore logical to try and extend the use of computers to the planning process. - " I had an idea in mind to work out a system on corporate level, but due to the fact that twelve weeks was all the time I had to design a workable computerised system, I have restricted my attention on branch level planning, but without losing sight of the near future when hopefully the acceptability of this system would mean a need to expand it.