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1. The Budgeting Process Overview
2. The Budgeting Process Company-wide budget and goals
Description of your department and its goals as laid out in the
strategic plan Business or performance indicators Past financial
statements and budgets List of accounts and profit/cost centers
involved Proposed budget, if there is one Allocated budget amount,
if there is one Templates for completing the budget Step One:
Gather the Budget Package
3. The Budgeting Process Standard of Precision How detailed do
you need to be with your numbers? What period of time should you
budget for? What accounts do you need to budget for? Are there any
special rules or formulas that are simplified for budgeting? Step
Two: Lay the Groundwork
4. The Budgeting Process Line of Control You will need to know
what parts of the budget will be monitored and who will control
them. VPs certainly dont want to be counting every pencil, but line
managers will probably need to report on more than the years final
figures. Step Two: Lay the Groundwork
5. The Budgeting Process Preparing for Monitoring How will the
budget be monitored? Will a review and adjustment take place at any
point in the year? Is there an allocated budget amount given to
you, or will you need to make a case? What kind of evidence will
you need? Step Two: Lay the Groundwork
6. The Budgeting Process Case Study (Part One) Expense Last
Years Expenses Your Budget Accommodations $6,000 Evening Meals
$4,000 Beverages $10,000 Entertainment $2,000 Breakfast Meals
$4,000 Transportation Costs $3,600 Sub-Total $29,600 Bonuses of
$100 x 100 workers $10,000 Bonuses of $500 x 10 managers $5,000
Grand Total $44,600
7. The Budgeting Process Specific Prizes Individual Review
Inspiring Time-Bound Step Three: Identify Your Goals
8. The Budgeting Process Sample Goal
Wewillcreatealine-itembudgetby June1,2020,thatwilldetailthe
expensesforthe2020Christmas party,withinourbudgetof$17,500. Case
Study (Part Two)
9. The Budgeting Process Human Resources
Directcompensationpolicy Indirectcompensationpolicy Promotionpolicy
Anypoliciesonmandatedraises Legislationonmandatedgovernmentpayments
Organizationalchartwithheadcountforyour departments Step Four:
Gathering Your Resources
10. The Budgeting Process Accounting
Allrelevantfinancialinformation Chartofaccounts Accountingpolicies
Capitalassetregisters Templatesortoolsthattheyuse
Organizationalchartofcostandprofitcenters
withyourresponsibilitiesclearlymarked Step Four: Gathering Your
Resources
11. The Budgeting Process Marketing and Sales All relevant
sales information (historical for three to five years plus current
year) Projected sales for the following year Information on
expected trends, planned promotions, and other factors that could
affect your budget Step Four: Gathering Your Resources
12. The Budgeting Process Budget Management Team Economic
forecast for the following year Strategic plan for the following
year Information on expected trends, planned events, and other
factors that could affect your budget Fiscal calendar with
important events marked Step Four: Gathering Your Resources
13. The Budgeting Process Budget Management Team ctd. Complete
budget package Policy on budget completion, reviews, monitoring,
reporting, and management Additional resources and tips Step Four:
Gathering Your Resources
14. The Budgeting Process Your Supervisor Goals for your team
Their expectations of you Step Four: Gathering Your Resources
15. The Budgeting Process Your Team Their goals Knowledge,
ideas, or experience that will help you Any relevant financial
information Step Four: Gathering Your Resources
16. The Budgeting Process Step Five: Planning Your Work Steps
Five and Six: Planning and Doing Task Resources Required Target
Date Due Date Complete
17. The Budgeting Process Step Six: Do It!
Nowthatthegroundworkisinplace,youcan startworking through the
budget package. Delegatetaskswhereappropriate,butmake
sureyoumaintainfinalcontroloverdecisions.
Alwaysdouble-checkthenumbers. Steps Five and Six: Planning and
Doing
18. The Budgeting Process Where can you get your numbers from?
Whereatallpossible,gatherhistoricaldataand extrapolateit.
Thenextbestchoiceistotakerelevant
historicaldataanduseitinplaceofactual historicaldata.
Ifnoexactorrelevanthistoricaldataexists,
yournextbestchoiceisanexpertsestimate. Steps Five and Six: Planning
and Doing
19. The Budgeting Process Case Study (Part Three) Expense Last
Years Expenses Your Budget Accommodations $6,000 Evening Meals
$4,000 Beverages $10,000 Entertainment $2,000 Breakfast Meals
$4,000 Transportation Costs $3,600 Sub-Total $29,600 Bonuses of
$100 x 100 workers $10,000 Bonuses of $500 x 10 managers $5,000
Grand Total $44,600