Exploring the effect of implementing accrual accounting system on performance-based budgeting of organizations

Enterprise resource planning is among the concepts aiming at recognition, planning, allocation and measurement of organizational resources and demands, specification of aims focusing on results by applying cost management to reduce expenses and enhance quality of services. This matter require the application of an appropriate budgeting method for optimal allocation of organizational resources that regarding positive results obtained from implementing performance-based budgeting in different organizations, this kind of budgeting can be a suitable method for managing organizational resources, budget allocation and purpose achievements. Therefore, this article by document mining and review of the literature, explores the effect of implementing accrual accounting system on performance-based budgeting of organizations. Focusing on different studies and their results, it can be concluded that performance-based budgeting focused on performance results and optimal allocation of organizational resources in accrual accounting system can bring not only transparency in financial reports through exact and controlled resource allocations , but also draw the attention of authorities and managers to the economy effectiveness, efficiency of organizational resources to enhance the satisfaction of people and offer services with high quality and low cost

performance-based budgeting, enterprise resource planning, accrual accounting.