5/29/2023 0 Comments Budget planning and control![]() The setting of proper budgetary controls comes next. The implementation of the budget is not the last step in the budgetary process. In case everything is fine with the budget, they will give the go-ahead for implementation. Makers will make any changes as per need. The budget will then go to the top management for approval. If there is a need for any changes in the budget, it can be done now. Also, a thorough review of the entire budget is essential. Changes in the Budget Model and ReviewĪfter finalizing all the above steps, a review of the assumptions as per the budget model should be done. Hence, after consultation with the top management, their inclusion should be done in the budget. These expenses are quite heavy and considerable by nature. The senior managers’ experience, coupled with past-performance figures, comes in handy in such budgeting processes.Ī company may plan to incur a capital expenditure or invest in a fixed asset during the budget period. They hardly participate in the preparation of the central budget. The top-down approach’s advantage is that the lower management saves a lot of time and gets a ready-made budget to be followed. Every department can opt to create its own budget based on the company’s broader budget allocation and goals. The departmental managers are assigned the responsibility for its successful implementation. This budgeting process involves preparing the budget by the company’s senior management based on the company’s objectives. There are two main approaches to the budgeting process. Read more on What is a Budget? What are the approaches to the budgeting process? Controlled Expenditure with Better Harmony.Preparation of Revenue and Expenditure Budgets.Preparing the Base for the Budget according to Funding.What are the Steps in the Budgeting Process?. ![]()
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