| Summary: | Budgeting is universally used all over the world. Budgets are the most powerful tool for management control, they are the key drivers and evaluators of managerial performance. However, in recent years criticism towards traditional budgeting has been notably increased. Researchers consider that traditional budgeting is a relic of the past; it cannot keep up with the changes and requirements of today’s business world. As an answer, alternative budgeting concepts were developed, such as beyond budgeting, forecasting or activity-based budgeting. Our paper is a literature analysis. First, the background and evolution of budgeting is presented, emphasizing both the advantages and disadvantages of traditional budgeting. Second, we continue the discussion about alternative budgeting methods highlighting their pros and cons. Third, conducted surveys and studies are analyzed in order to establish whether traditional or alternative budgeting methods are better and have a positive impact on businesses; or which has more practical usefulness. The final part provides conclusions and discussions for future research.
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