A traditional budget is defined as the practice of forecasting a business's costs and

income for the following year, established on the last year's budget (McLaney and Atrill.
2020). Even though this is one of the finest ways to support business expectations, it
may not be appropriate for the time being corporate environment due to the changing
nature of business operations. I believe that is why Wallander state that traditional
budgeting as it is "....an outmoded way of controlling and steering a company. It is a
cumbersome way of reaching conclusions which are either commonplace or wrong', as
this is understandable. Because traditional budgeting frequently counts as time-
consuming and costly and uses an inordinate amount of business resources.
Many reports show that some companies may take a long period to develop a budget.
In some cases, it takes from six to eight months. At the same time, because most
budgets will be comprehensive in the organisation, a lot of input and discussion talks
from many individuals across the company are necessary. This increases the number of
business resources that will be wasted. (Asogwa and Etim. 2017).
In addition to that traditional budgeting, it is harder to anticipate conditions that have
never been encountered before, like what happened through Covid 19 spread. As a
result, when something unexpected happens, it will be too hard to coop with it. For this
reason, traditional budgeting cannot assist the management board in adapting to
challenging scenarios. (Sirkia and Laanti. 2015).

Reference

Asogwa, I.E. and Etim, O..(2017). Traditional Budgeting in Today's Ausiness

Environment. Available from:
https://www.researchgate.net/profile/Etim-Etim/publication/346503000_Traditional_Bud
geting_in_Today's_Business_Environment/links/5fc55afa92851c30129919a2/
Traditional-Budgeting-in-Todays-Business-Environment.pdf [Accessed: 16th February
2023]

McLaney, E., and Atrill, P., (2022). Accounting and finance an introduction.

Sirkia, R. and Laanti, M., (2015). Adaptive Finance and Control: Combining Lean, Agile,
and Beyond Budgeting for Financial and Organizational Flexibility.Available from:
https://essex.primo.exlibrisgroup.com/discovery/fulldisplay?
docid=cdi_proquest_miscellaneous_1678012611&context=PC&vid=44UOES_INST:UO
ES&lang=en&search_scope=MyInst_and_CI&adaptor=Primo
%20Central&tab=Everything&query=any,contains,Adaptive%20Finance%20and
%20Control:%20Combining%20Lean,%20Agile,%20and%20Beyond%20Budgeting
%20for%20Financial%20and%20Organizational%20Flexibility&offset=0 [Accessed:
16th February 2023]