The budgeting process focuses on developing corporate strategy, creating an annual budget, approving the annual budget, and monitoring budget-to-actual results. There are specific practices, process flows, and performance measures to follow when setting the budgeting process flow. In this sample process flow, performance measures related to the budgeting process are outlined.
This document can be used as a general guide to understand and review the budgeting process. Organizations should continuously update and monitor the processes included in this document to ensure that they accurately reflect business operations.
Steps included in the high level budgeting process flow include:
- Defining strategic goals
- Providing training for budget developers so that they recognize how budgeting affects the strategy
- Improving procedures and information systems so that information is uniformly reported and easily accessible
- Creating assumptions, estimates and budgets
- Defining timelines for budget approvals
- Identifying and investigating significant variances