Question

The budget process is often iterative and may involve a first, second, and even third round of discussions and updates with department managers/senior management. Given this situation, what could we do from an organizational standpoint to effectively keep track of all these changes and why is it important to build a flexible budget template?

Answer 1

In order to keep track of all the changes in the budget process, a term known as agile project management could be used in which different small sections are developed and completed in different phases and hence it is easy to keep track of all these changes. in this approach different sections or iterations are reviewed and checked by the project team. one of the most important benefit of this approach is that all the issues are addressed at the right time as and when they arise i.e. during whole project phase issues are addressed and changed accordingly.

it is important to build a flexible budget template to in order to compensate the need for changes in the various activity level during project evaluation process. it is prepared by identifying the fixed and variable and semi variable costs in relation to the level of output and activities in the project. hence effective in time saving and completion of the project in time line.