Question

QUESTION: What are the IDENTIFY CHARACTERISTICS that define successful budgeting processes and best practices?

Instructions:

(1). MUST Use Strategic Planning & Budgeting strong vocabularies

(2). MUST Include Citations and References. Original work - No plagiarism allow

Answer 1

Identity characteristics

Involve Relevant Players : organization-wide cooperation is critical to ensure a smoother budgeting process.

Budget for income first: create a realistic projection of reliable income and make sure budgeted expenses are less.

Understand revenue source(s): budgeting is a form of risk management, a healthy mix of diverse revenue streams will help keep the organization stable should a revenue source go away.

Understand the budget’s relationship to the organization’s short and long range goals: the budget should be consistent with the organization’s stated goals and missions.

Budget for capital in addition to operations: a capital budget can run for several years, but a good strategy should be in place to ensure non-operating goals are met.

Include notes when appropriate: don’t take for granted that key stakeholders fully understand underlying budget assumptions and be as concise as possible.

Provide the appropriate tools: there are plenty of great budgeting solutions out there, even if you plan on using Excel, make sure your “budgeters” are trained.

Ensure the budget is presentable: you have worked hard on the budget, make sure others can understand it.

Review and revise: the budget may need to change due to unforeseen circumstances, think of it as a fluid document.