The impact of implementing financial budgeting systems on improving companies' financial performance

Abstract

 The research aimed to analyze the relationship and impact of implementing financial budgeting systems on improving companies’ financial performance. The General Electric Industries Company in Baghdad was selected as the study population, and the sample consisted of 60 employees from the company's financial and administrative staff. Among the key findings of the study is that the implementation of financial budgeting systems serves as an effective planning and control tool, contributing to enhanced financial discipline, expenditure rationalization, and improved efficiency in resource allocation within companies. The responses of the research sample also indicated a high level of agreement on the importance of financial budgets in supporting the financial decision-making process, evaluating actual performance against planned targets, and achieving the organization’s strategic objectives.Among the main recommendations is the need for Iraqi companies to adopt integrated and flexible financial budgeting systems, enhance specialized training for staff, and align budgets with operational and control plans, considering them an effective instrument for financial planning and performance management..