Budget Planning Process

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A Budget Planning Process is an organizational planning process to solve a budget planning task.



References

2013

2010

  • http://www.nonprofitaccountingbasics.org/reporting-operations/budgeting-process
    • QUOTE: The budget process is the way an organization goes about building its budget. A good budgeting process engages those who are responsible for adhering to the budget and implementing the organization's objectives in creating the budget. Both finance committee and senior staff participation is built into the process and a timeline is established leaving adequate time for research, review, feedback, revisions, etc. before the budget is ready for presentation to the full board. The annual budgeting process should be documented, with tasks, responsibility assignments and deadlines clearly stated. A good budgeting process also incorporates strategic planning initiatives and stipulates that income is budgeted before expenses. Fixed costs are identified and related to reliable revenue. Budgeting decisions are driven both by mission priorities and fiscal accountability.

      Steps for developing a good budgeting process:

      1. Write it down. …
      2. Decide who should be involved and when. …
      3. Establish an annualized timeline. …
      4. List specific tasks with specific responsibility assignments. …
      5. Ensure that budget line items and accounting line items are in sync. …
      6. Develop worksheets, templates, and tools that promote inclusion of all relevant budget components and facilitate "what if" scenarios. …
      7. Adopt policies for adhering to budgets, handling variances, approval authority, etc. …