Insights and international alignment of budgeting practices in the Algarve region

• Autor(a) principal: Faria, Ana Rita; Escola Superior de Gestão, Hotelaria e Turismo, Universidade do Algarve, Portugal
• Data de Publicação: 2019
• Outros Autores: Ferreira, Leonor; Nova School of Business and Economics, Trigueiros, Duarte; ISTAR-IUL, University Institute of Lisbon
• Tipo de documento: Artigo
• Idioma: por
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: https://www.dosalgarves.com/index.php/dosalgarves/article/view/167
• topic: Budgets; budgeting practices; budgeting process; management accounting; hotel sector; Algarve.; Orçamentos; práticas de orçamentação; processo orçamental; contabilidade de gestão; setor hoteleiro; Algarve.

Budgets are an essential tool for planning and control, performance evaluation, communication, coordination and staff motivation. Despite their importance and wide use in the hotel sector, research into the budgeting practices of hotels located in Portugal is scarce. This study analyses the budgeting practices of hotels in the Algarve. Data collected through a structured questionnaire submitted to financial managers shows that budgets are widely adopted; however, they are mainly produced for the short term. The primary reasons for preparing budgets are performance evaluation, target setting, control and short-term planning. Few hotels use zero-base budgeting and there is also little use of flexible budgeting. Budgets are viewed as one of the main performance indicators. The findings are in line with the conclusions of previous studies.