Step 1: Update budget assumptions.
The [Controller] takes up with the [Chief Financial Officer] the amount of funding that will be available for working capital and capital budgeting purposes. These go into the budget assumptions.
The [CFO] and Senior Management discuss the criteria for ranking capital budget proposals, based on current funding conditions.
Both the CFO and Senior Management review whether significant new investments are needed in view of the capacity structure in all departments.
Step 2: Update expenses.
Before [15 November], the [Controller] sends each department a list of expenses that are annualized, based on actual expenses as of [October]. Managers are responsible for reporting estimated changes in expenses for the year ahead.
These estimates will include the cost and timing of capital expenditures.
Step 3: Update revenue.
The [Controller] also sends the [Sales Manager] the revenue report as of business unit as of [October] of the current year. It's the Sales Manager's responsibility to report estimated changes in revenues for the year ahead.
Step 4: Update the budget model.
Within [November], the [Controller] is responsible for updating the budget model with information from the managers.
The [Controller] also ensures that the following details in the budget model are precise and up-to-date:
allocations for overhead;
actual and budgeted amounts for the current year;
amounts for mandatory contributions in the staffing budget page;
amounts for projected changes in the pay rates; and
projected borrowings.
Step 5: Review and revise the budget.
Discuss with the managers any significant differences between the budgeted expenses and revenues and the annualized amounts for the current year.
Incorporate any additional changes decided on by senior management.
Enter the completed budget into the system no later than [30 days] after the board has approved the budget.
.webp)
