1) Establishing Objectives of Budget Preparation:
Align budget with organizational goals and priorities.
Identify key projects and initiatives for the upcoming period.
2) Gathering Financial Data:
Review past financial statements and performance.
Analyze revenue streams and expenditure patterns.
3) Forecasting Revenues and Expenses:
Project future income based on historical data and market trends.
Estimate costs, including fixed and variable expenses.
4) Departmental Input:
Collaborate with various departments to understand their financial needs.
Incorporate feedback and adjust allocations accordingly.
5) Drafting the Budget:
Create a detailed budget document outlining all expected revenues and expenses.
Ensure transparency and accountability in allocations.
6) Review and Approval:
Present the draft budget to senior management or governing bodies.