Question

If you have not been part of the budgeting process before what you believe would be the biggest challenge

Answer 1

         Yes If you have not been part of the budgeting process before what you believe would be the biggest challenge, because budgeting process have become a mainstay in modern management accounting. While a strong budget can bring both financial and operational benefits, the process is far from foolproof. Understanding some of the challenges of budgeting and budgetary control can help you avoid some common pitfalls as you go through the budgeting process at your company.

Further the budgeting process involves planning for future profitability because earning a reasonable return on resources used is a primary company objective. A company must devise some method to deal with the uncertainty of the future. A company that does no planning whatsoever chooses to deal with the future by default and can react to events only as they occur. Most businesses, however, devise a blueprint for the actions they will take given the foreseeable events that may occur.

Further also following steps for developing a good budgeting process:

1. Write it down :

Many organizations "have" a budget process, but it is not written down.

2. Decide who should be involved and when:

                The executive director and program director(s) naturally play a significant role in the   budget process, but departmental staff members who have responsibility for adhering to budgets should also play a role in creating those budgets.

3. Establish an annualized timeline:

Start earlier. Many funders require budgets for the following year far earlier than small and midsize organizations customarily get serious about budgeting.

4. Develop worksheets, templates, and tools that promote inclusion of all relevant budget components and facilitate "what if" scenarios.