Objective: Financial performance is one of the vital pillars of all organizations, especially banks, which proper budgeting can affect through optimal resource allocation. The purpose of the present study is to examine the effects of different dimensions of budgeting (planning, coordination, control, and evaluation) on the financial performance of banks.
Method: The study is descriptive and analytical in terms of implementation method, cross-sectional in terms of time dimension, and in terms of the nature of data, it is a quantitative research and a library and field research. The data collection method is in the form of a questionnaire from the employees of banks in Kohgiluyeh and Boyer-Ahmad provinces. In the present study, the results of 199 people were analyzed using SPSS and Smart pls software.
Findings: The results obtained indicate that all dimensions of budgeting, including planning, coordination, control, and evaluation, have a significant and positive effect on the financial performance of banks.
Conclusion: The results of this study confirm that budgeting, not as a simple administrative process, but as a strategic tool, plays a key role in improving the financial performance of banks. The findings showed that the synergy between careful planning, interdepartmental coordination, continuous control and systematic evaluations leads to improved efficiency in resource allocation and, as a result, to improved financial indicators. Therefore, strengthening each of these four dimensions, especially in the competitive environment of banks, is an inevitable necessity to achieve financial sustainability and economic growth.