Budgeting Process Flow

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. 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 This document should be used as a general guide to understand and review this business process. Organizations should customize this tool to ensure that it reflects their business operations and continuously monitor the process to ensure that the steps described are accurate.