The effect of information, communication and technology on budgeting in manufacturing companies in kenya.

Abstract

lCT is the changing business processes with the aid of LT. equipments, both hardware and software to enhance efficiency and effectiveness. Budgeting on the other hand just one among the Management reports that are regularly produced to guide management on their day to day running of Companies. The objective of this study was to assess the relationship between ICT and budgeting in Manufacturing Companies in Kenya. The research adopted a descriptive survey design on a sample of the 55 Manufacturing Companies in Kenya. The study utilized both primary and secondary sources of data. Data analysis was done using the facilities for descriptive methods on the Statistical Packages for Social sciences (SPSS). From the findings, it is clear that the Manufacturing industry in Kenya is growing a steady rate and consequently the players need to comply with certain regulations in the market. From the findings, it is clear that Manufacturing Companies produce timely budgets. It is also clear that ICT greatly impact the nature and quality of budgets produced by manufacturing companies. During this era ,ICT changes rapidly and thus for the manufacturing companies to be able to compete well in the ever competitive market they need to employ the use of the new ICT in their budgets and budgeting processes in order to acquire a sustainable competitive advantage over and above their competitors. It is mandatory for all listed companies to prepare budgets. If for any reason budgets are not correct, then the actual reports are most likely to be incorrect. For this reason Manufacturing Companies in Kenya employ the use of ICT in their budgets to improve on speed, accuracy, reliability, interaction and effective budgets communications. Budgeting is a key Management report as it guides Management on where they want to be in a certain period of time and needs a lot of input both by way of resources and time and need to be understood by all in order for the company to Optimize the use of the scarce resources and eliminate any possible controllable losses to be inline with the main goal of the firm, to maximize shareholder's wealth.