Contact Information
We are available 24/ 7. Email Now

⦁ Introduction
⦁ Background

In Current Economic Environment,

There is a need of adapting improved budgeting practices, for the purpose of meeting the market’s dynamics. In last decades, there has been an emergence of new budgeting practices in the UK, which are used for giving a strategic scope to decisions of a firm (Leuz, 2018).

Previously, some studies have been conducted for evaluating the extent of use of these practices in different settings and for analysing the degree of sophistication of budgeting practices in different companies (Cockcroft and Russell, 2018).

In the current dynamic business world solution, different types of budgeting practices are adopted by the UK retail firms, which need to be studied properly in order to get a comprehensive idea about their benefits as well as challenges.

Hence, this study will be carried out by doing a systematic review of different financial accounting practices followed by the commercial banks of the UK.

In today’s business world, business firms are required to revise their budgeting strategies so as to ensure proper response to rapid developments in computer-based production systems, information and communication technology and intense competition in markets (Hiebl, 2018).

In this regard, budgeting is increasingly being identified as one of the most important fields within the discipline of financial accounting. A noteworthy volume of literature is dedicated to this topic of research.

The focus of this research, however, will be on systematic review of varying budgeting practices followed by the UK commercial banking sector. The study will focus on commercial banks in the UK, because they make a major one of the most growing sector of the UK economy (Sharma and Panigrahi, 2013).

⦁ Problem statement

With the evolution of the techniques of doing business and the conducts of banking, procedures and practices of the commercial banking also needed a change. The practices of making budgets and allocating funds in conducting the routine practices of the banking process in the contemporary period of time need to be aligned with the demands of the time.

The traditional practices are outdates now and there is dire need of evolution in the practices of commercial banks. With the change in budgeting practices, businesses would flourish and be competitive as well.

⦁ Aim of the study

To critically analyse the key financial budgeting practices followed in UK’s commercial banks. This research will add value to the literature, because there has been no study conducted previously to systematically review budgeting practices followed in UK’s commercial banks.

The study will not only review the existing body of literature, but will analyse the budgeting practices carried out in this age. Through this research, the management of UK commercial banks will get to know about different types of budgeting practices, which will allow them to gain a competitive advantage on this basis.

Besides this, the management of UK commercial banks will also get to know about key challenges linked with adoption of different budgeting practices. So, the study will be having both academic as well as practical implications.

Research Questions

⦁ What is the key trend of adopting budgeting practices in UK commercial banks?
⦁ What are different financial budgeting practices followed in UK commercial banks?
⦁ What are the key benefits and challenges of different financial budgeting practices followed in UK commercial banks?
⦁ Objective of the study

This research will serve the purpose of critically analysing the budgeting practices of the commercial banks in UK. This reason why this analyses is to point out the weaknesses in the practices and suggest remedies.

This paper will be helpful for the banks to overcome the loopholes in their budgeting. Students will also be among the beneficiaries of this research as it will explore the trends of budgeting of the commercial banks in UK, and the budgeting practices as well, which help the students in their academic projects and they will be able to suggest better budgeting practices in the organizations they work in the future.

The Objectives Of This Research May Include:

⦁ To study the key trend of adopting financial budgeting practices in UK commercial banks.
⦁ To identify key financial budgeting practices followed in UK commercial banks.
⦁ To analyse key benefits and challenges of different financial budgeting practices followed in UK commercial banks.
⦁ Literature Review

In the last few decades, some new budgeting practices have emerged, for the purpose of fulfilling increasing needs of larger organisations and also the challenges linked with changing economic environment. Traditional budgeting practices are considered to be improper for fulfilling these needs and also for handling data as well as information.

The dynamic business environment demands companies to adopt new budgeting techniques in order to effectively manage financial as well as non-financial data and to gain competitive edge (Maas et al, 2016).

The adoption of such progressing budgeting has an impact on role of financial accounting and it has also resulted in creation of value with the help of deploying resources in an efficient and effective manner (Edwads, 2013).

Due to this reason, different researches have been carried out for evaluating key benefits of different particular financial budgeting practices across different countries (Maseko and Manyani, 2011). Even though, some studies have been carried out for evaluating key benefits linked with adoption of financial budgeting, but no study has been carried out to systematically review these practices adopted by UK commercial banks.

So, This Current Study Will be Conducted To Fill This Gap in literature.

Schmidgall and Singh (2007) conducted a research for analysing budgeting practices in the club industry of the United States. As per findings of this study, it is concluded that by involving key members of executive management teams, the companies create three different budgets: operating budget, cash budget and capital budget. It has been argued that budgeting is linked to financial goals. A similar finding was revealed by DeFranco and Schmidgall (2017).

However, there is still some evidence of using traditional budgeting practices in US food and drinks industry. With the emergence of globalization and increased competition, it has become essential for accountants to link budgeting with the organization’s overall strategies.

Moreover, the study of Schmid gall and Singh (2007) lagged behind due to the fact that it was centred on US-based firms only. Moreover, the focus was set only on the US hospitality and club industry, which made the findings inapplicable for other industries. This is why this study is focused on the commercial banks in the UK, so as to determine the budgeting practices there.

In addition to this, Ahmad (2014) conducted a research for exploring the level of adoption of different financial accounting practices in Australian manufacturing industry. It has been found in the research that Australian manufacturing companies are highly engaged in practicing capital budgeting. As per findings of this study, it is revealed that budgeting techniques are highly used by companies.

The focus of this study was on Australian manufacturing industry. However, there is an insignificant evidence of budgeting practices in Australia. Along with this, another study was conducted by Puwanenthiren (2016) on comparing the capital budgeting techniques in Australia and Sri Lanka.

It has been found in this research that the companies based in Australia adopt an extensive budget planning. Most of the experts’ time is spent on searching for investment opportunities.

While Australian companies use discounted cash flows (DCF) to evaluate their budgets, the Sri Lankan firms estimate budget through values of payback period (PBP). However, one thing was found to be common among firms from both the countries.

Researchers argue that the companies based in Sri Lanka and Australia are more likely to assure a consistency between budget allocation and corporate strategy. When planning budgets, these firms tend to devise ways to attain competitive advantage. This is also in accordance with what was established by Nguyen, Weigel and Hiebl (2018).

In light of these findings, the current study tends to take the literature forward by understanding the key benefits as well as challenges linked with adoption of different budgeting practices in UK commercial banks.
Morales and Lambert (2013) carried out a research for understanding different budgeting practices followed in companies operating in Finland.

The study has revealed that companies in Finland mostly follow budgeting techniques to control costs, however, some strategic planning techniques like formal strategic planning and long-range forecasting are highly used.

Moreover, it was concluded by author that companies in Finland are highly focused towards adopting various financial measures and these will be considered as significant in future as well.

Moreover, Sedevich Fons (2012) found that companies adopt different budgeting practices in order to meet changing demands in dynamic business world. The study has revealed that the level of adoption of budgeting measures gets positively affected through technological advancements as well as intense competition in the market.

Generally, it is found that due to the change in business as well as economic environment, companies are required to develop new budgeting strategies. This way, there is an elevated chance for them to allocate their resources effectively and achieve competitive edges.

In order to do so, the management of firms are required to carry out an extensive budget planning. The current study will, therefore, reveal the most effective budgeting practices, their benefits as well as challenges for UK commercial banks. Hence, the study will add value to the literature through systematic review of these practices within the UK context.


⦁ Research Approach

As the current study aims at systematically reviewing budgeting followed by UK retail firms, so, the study will be based on qualitative research approach. According to this method, the focus of researcher will be on in-depth analysis as well as critical examination of different financial accounting practices followed by companies.

With the help of using qualitative research method, the researcher will become capable of deeply analysing the research issue (Mackey and Gass, 2015). As per suggestion of Flick (2015), qualitative research method helps in understanding key beliefs as well as concepts related to an issue. With the help of this method, the researcher will become capable of gaining valuable insights about budgeting practices followed by UK commercial banks.

⦁ Data collection

The focus of present research will be on collection of secondary data. The use of secondary data will help in deeply analysing the financial budgeting practices followed by Commercial Banks of the UK. As the secondary data has a prior existence, so this helps in completing the research in appropriate time (Silverman, 2016).

The secondary data will be collected from recently published articles, books and financial reports of UK well-known authorities. The researcher will use only those articles and books, which are published in English language. For ensuring reliability and authenticity of current research findings, the secondary data will be collected from reliable as well as authentic sources.

⦁ Inclusion/Exclusion Criteria

Table 1. Inclusion/Exclusion Criteria

    • Included Excluded
    • Time Period From 2011-2018 Below 2011
    • Language English Any other than English
    • Reliability Unbiased findings from researcher Biased findings from researcher
    • Accessibility/Availability Google Scholar Non-scholarly Journals
    • ⦁ Search Strategy

The focus of current research will be on using Google Scholar for collection of secondary data. Moreover, internet will be used to get access to financial reports of UK commercial banks. The researcher will use some key words like financial budgeting, UK commercial banking sector, finance, budgeting practices and financial budgeting practices while searching data.

⦁ Data analysis

After collection of data through secondary sources, its analysis will be done using thematic analysis technique. This technique will help in analysing the data in an efficient and effective manner (Flick, 2015).

⦁ Ethical Considerations

In order to ensure proper compliance with ethical norms and standards, the researcher will properly acknowledge all authors, whose research findings will be used in current study. Moreover, the researcher will not do biasness and all original findings of other researchers will be used in the study, while writing those findings in researcher’s own words.

⦁ Schedule of Events

Tasks Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8
Studying background of the topic
Studying and reviewing existing literature
Writing Methodology
Analyzing the data

Working on conclusion

⦁ References

Ahmad, K., 2014.

The adoption of management accounting practices in malaysian small and medium-sized enterprises. Asian Social Science, 10(2), p.236.

Ahmad, K., 2014.

The adoption of management accounting practices in malaysian small and medium-sized enterprises. Asian Social Science, 10(2), p.236.

Alleyne, P. and Weekes-Marshall, D., 2011.

An exploratory study of management accounting practices in manufacturing companies in Barbados. International Journal of Business and Social Science, 2(9)

Cockcroft, S. and Russell, M., 2018.

Big data opportunities for accounting and finance practice and research. Australian Accounting Review, 28(3), pp.323-333.

DeFranco, A.L. and Schmidgall, R.S., 2017.

Budgetary Controls in Clubs: A Time-Tested Process for Financial Success. The Journal of Hospitality Financial Management, 25(1), pp.44-55.

Edwards, J.R., 2013.

A History of Financial Accounting (RLE Accounting). Routledge.
Flick, U., 2015. Introducing research methodology: A beginner’s guide to doing a research project. Sage
Hiebl, M.R., 2018. Management accounting as a political resource for enabling embedded agency. Management Accounting Research, 38, pp.22-38.

Leuz, C., 2018. Evidence-based policymaking:

Promise, challenges and opportunities for accounting and financial markets research. Accounting and Business Research, 48(5), pp.582-608.

Maas, K., Schaltegger, S. and Crutzen, N., 2016.

Integrating corporate sustainability assessment, management accounting, control, and reporting. Journal of Cleaner Production, 136, pp.237-248.

Mackey, A. and Gass, S.M., 2015. Second language research:

Methodology and design. Routledge.

Maseko, N. and Manyani, O., 2011.

Accounting practices of SMEs in Zimbabwe: An investigative study of record keeping for performance measurement (A case study of Bindura). Journal of accounting and taxation, 3(8), pp.158-161.

Morales, J. and Lambert, C., 2013.

Dirty work and the construction of identity. An ethnographic study of management accounting practices. Accounting, Organizations and Society, 38(3), pp.228-244.
Nguyen, D.H., Weigel, C. and Hiebl, M.R., 2018. Beyond budgeting: review and research agenda. Journal of Accounting & Organizational Change, 14(3), pp.314-337.

Puwanenthiren, P., 2016. Capital Budgeting Practices and Firm Performance:

A Comparative Study of Australia and Sri Lanka (Doctoral dissertation, Federation University Australia).

Schmidgall, R.S. and Singh, A.J., 2007.

Operating budget practices in the US club industry: A comparative study, 1986–2006. Journal of Retail & Leisure Property, 6(3), pp.231-238.

Sedevich Fons, L.A., 2012.

Integration of quality cost and accounting practices. The TQM Journal, 24(4), pp.338-351.

Sharma, A. and Panigrahi, P.K., 2013.

A review of financial accounting fraud detection based on data mining techniques. arXiv preprint arXiv:1309.3944.

Silverman, D. ed., 2016. Qualitative research. Sage.

Wagner, E.L., Moll, J. and Newell, S., 2011. Accounting logics, reconfiguration of ERP systems and the emergence of new accounting practices: A sociomaterial perspective. Management Accounting Research, 22(3), pp.181-197.

⦁ Appendices

Please fill ALL sections of the form unless it specifies to skip a section.
Email completed forms (including any attachments – see checklist) to the Module Moodle by [INSERT DATE]

Business School Research Ethics Application Form

  • Project Title
  • Module
  • Module Code
  • Academic Year
  • Student
  • Supervisor

Section A: Nature of Project


This section focuses on gaining an overall understanding of what is being examined within the research project. There should be sufficiently detailed so that a layperson can understand what is being assessed and how.

A1 – Please provide a brief background and rationale to the research:

The commercial banks in the United Kingdom have updated their financial practices including budgeting after the 2008 world economic recession. This has disturbed the economic system of leading economies including the United Kingdom. Therefore, the present study aims to study the budgeting practices of the commercial banks of the UK and thus it is important to gather literature and analyse it to have information regarding their budgeting practices.

This should be no more than 300 words and written for non-subject experts

⦁ To study the trend of budgeting practices in the commercial banks of the UK
⦁ To identify the key budgeting practices in the commercial banks of the UK
⦁ To analyse the benefits and challenges of budgeting practices followed in the commercial banks of the UK

A2 – Please concisely state the research aim(s) and objective(s):

This should be no more than 150 words and written for non-subject experts

A3 – Please provide an overview of the methodological approach and materials used in this project:
(This should be written for non-subject experts)
Using a qualitative methodology, the study would focus on the secondary research and analyse the data through various sources. The researcher will use secondary data from ScienceDirect, Google Scholar and peer-reviewed articles from Emerald, Jstor, Taylor and Francis. The focus would be to have qualitative studies that are not older than 12 years. The main focus would be on commercial banks of the UK.

A4 – Will the project entail ONLY secondary data collection using publically available sources?
⦁ Section B: Handling Primary Data

(If you have answered “Yes” to A4 you do not need to complete sections B-D, please go direct to section E)

Please consider the following:

Does data collection require:

⦁ Either researchers or participa3-=2-=4-0p4=tr4509t450t9nts to enter private locations (to which neither individual has full access rights)
⦁ Access to the home(s) of either researchers or participants
⦁ Private locations with no neutral third party present
⦁ Entry to public locations after the hours of 6.00pm?
Are there any issues of confidentiality NOT addressed by the following?
⦁ Aggregation of numerical data
⦁ Anonymisation of specific individuals or organisations (e.g. through use of pseudonyms)
⦁ Paraphrasing of potentially identifiable quotes

Are there any issues of data handling which are not dealt with by the following established procedures?

⦁ Compliance with the Data Protection Act
⦁ BCU University storage policy

⦁ Section C: Participant Information

This section focuses on gaining an understanding of how you will identify and recruit participants and whether what you are wishing to conduct is ethically sound. Please explain who you will recruit, why, how will you ensure their safety i.e. anonymity and any further ethical risks associated.

C1 – How will potential participants be identified, approached and recruited?

C2- How will participants give informed consent freely?
(Please provide the consent form and participant information sheet with this ethics application)

C3 – Will participants be informed of their right to withdraw their participation and/or data at any time during and after the study? Provide details of how you will achieve this:

⦁ Section D: Data collection, storage and dissemination

This section requires you to detail: a) How you plan to collect your data and, b) How will securely store it. You are required to inform the committee how you aim to minimise environmental risks when collecting data, in addition to discussing the steps that you will take to protect the data that will be collected.

D1 –Please provide details regarding the proposed site(s) for data collection

(e.g. location(s) and timing of data collection, with reference to potential risks to participants and researchers posed by this)

D2 – How will you ensure confidentiality (or anonymisation, if possible) in collecting, interpreting and storing data?

⦁ Section E: Checklist and declarations

D3- Where will data be stored and how will access be managed and controlled?

Appendices checklist (Not Necessary for Secondary Data Analysis)
Participant information sheet
Participant consent form
Research materials (e.g. Copies of questionnaires, interviews, vignettes and other research tools)

Student declaration

In signing this research ethics application form I confirm the following:

⦁ That the form is accurate and completed to the best of my knowledge.
⦁ If the research is approved then I will adhere to the terms of the full application and if there are to be any changes to the project I will seek an amendment from the committee.
⦁ I understand that research records/data may be subject to inspection for audit and compliance purposes.
⦁ I understand this application and any additional documentation will be retained for 5 years post the end of the project.

⦁ I understand that my research must not involve: participation of those under 18 years of age; participation of those with learning disability; participation of those with a mental health condition; participation of those with physical or sensory impairments; participation of those with sensitive/significant life experiences (e.g. victims of abuse / ex-offenders); data collection surrounding highly sensitive topics (e.g. abuse, terrorism, religion,

interpersonal violence, terminal illness); data collection from those in prison; constraint of participant rights (e.g. informed consent via deception, or perceptions of the right to withdraw from the study); any physical or intrusive intervention with the participant (including consumption of food or drinks);

withholding any aspects of routine health treatment or care; a reasonable risk of disclosure of information requiring communication to another organisation (e.g. abuse, criminal offences/illegal activity, unknown illness or disease); long distance travel to collect data; NHS service users.

Signed by

Supervisor declaration

In signing this research ethics application form I confirm the following:

⦁ I am satisfied that the scientific content of the research is satisfactory for an educational qualification at this level.
⦁ I take responsibility for working with the student named above to ensure that this study is conducted in accordance with the relevant disciplinary ethical guidelines.
⦁ I will ensure that the student seeks an amendment from the BLSS Research Ethics Committee before implementing substantial amendments to the protocol or to the terms of the full application of which the Committee has given a favourable opinion.

Signed by


Application Reference:
Date of Submission:
Allocated Category:
Allocated Reviewers:



Leave a Reply

Your email address will not be published.