Literature Review: “Beyond Budgeting is the set of guiding principles that, if followed, will enable an organization to manage its performance and decentralize its decision-making process without the need for traditional budgets. Its objective is to enable the organization to respond to the success factors of the information economy (for example, adapting to unpredictable conditions). “Quantitative plans are called budgets. Budgets are prepared to impose cost controls on an organization's activities (Chenhall, 1986). Budgets are then used to evaluate management performance and the budget itself is considered a standard for evaluating performance (Salomon, 1956). The purpose of the budget is also to implement the organization's strategy and communicate it to the employees of the organization Rickards (2006). The changing external environment has led to a shift in budgeting approaches from initial cash-based budgets to zero-based budgets (Bovaird, 2007). Traditional budgeting is still a very popular technique and is widely used by organizations across the world. .(Dugdale & Lyne, 2006). The environment is changing and therefore budgets should promote innovations and meet the key needs of employees rather than restricting them (Daum, 2002).III. Criticisms of traditional budgeting The traditional budgeting approach consumes a large part of companies' time and remains insensitive to changes in the external environment (Neely et.al, 2003). In this era of intense competition, traditional budgeting approaches do not encourage innovation among businesses. instead, employees focus on cost reduction. (Player, 2003). Other criticisms of traditional budgeting approaches include: • There is no way for an entity with ...... middle of paper ...... ng to play a large role in accounting management in the future (Daum & Hope, 2003). For large organizations, it is not easy to move from a traditional technique so easily that they can implement this technique in stages. Traditional techniques are absolute and do not work in today's environment. This article supports this argument. However, in a stable environment, traditional budgeting can be used without losing any advantages in the industry. Future Research Directions: The study carried out was limited to the culture of Pakistan. . Similar studies can be conducted in other geographical contexts to add the applicability of beyond budgeting in such cultures. Furthermore, the study conducted was limited to the oil industry, hospital industry and hotel industry. Other sectors can be specifically studied to observe the responses of similar studies in other sectors..