Budget Cycle and it's preparation
Budget Cycle and it’s Preparation
Government budget cycle is the time frame that it takes the annual government budget to be prepared, presented, enacted, into law, and implemented. In general, the budget cycle starts twenty months before the beginning of the fiscal year for which funding is requested, and runs all the way through until the fiscal year comes to an end.
A budget cycle is the process of making a budget from the beginning to the end. This cycle involves; the formulation of the budget, execution, auditing and legislative assessment and finally access to Information.
4 Phases of a Budget Cycle
Typically used to describe government budgeting, the four-phase budget cycle is also applicable to companies that operate based on a budget. Each step of the process is, in and of itself, valuable. When you look at preparation, approval, execution, and then evaluation as separate steps, your budget becomes a living document that can better help you achieve your company's aims.
Preparing the Budget
The first step of the budget process is to actually generate the budget. Done right, this process starts with careful thought at the ground level as to what is needed and what new initiatives can be started. At the same time, leadership and vision from the top offers some guidance as to what the departments can expect. Once each department makes its spending decisions, their requests are sent to the decision makers for inclusion in, or exclusion from, the final document.
Approving the Budget
While the political budgeting process is a bit messy, one of its underlying principles is very meaningful for businesses. Budgets aren't approved on a yes or no basis. Instead, they're the subject of further debate. While, at times, the political process can distort budgetary priorities, businesses don't have to fall prey to that problem. Instead, the approval process can be an opportunity to take another view of how your company is spending its funds.
Executing the
Government budget cycle is the time frame that it takes the annual government budget to be prepared, presented, enacted, into law, and implemented. In general, the budget cycle starts twenty months before the beginning of the fiscal year for which funding is requested, and runs all the way through until the fiscal year comes to an end.
A budget cycle is the process of making a budget from the beginning to the end. This cycle involves; the formulation of the budget, execution, auditing and legislative assessment and finally access to Information.
4 Phases of a Budget Cycle
Typically used to describe government budgeting, the four-phase budget cycle is also applicable to companies that operate based on a budget. Each step of the process is, in and of itself, valuable. When you look at preparation, approval, execution, and then evaluation as separate steps, your budget becomes a living document that can better help you achieve your company's aims.
Preparing the Budget
The first step of the budget process is to actually generate the budget. Done right, this process starts with careful thought at the ground level as to what is needed and what new initiatives can be started. At the same time, leadership and vision from the top offers some guidance as to what the departments can expect. Once each department makes its spending decisions, their requests are sent to the decision makers for inclusion in, or exclusion from, the final document.
Approving the Budget
While the political budgeting process is a bit messy, one of its underlying principles is very meaningful for businesses. Budgets aren't approved on a yes or no basis. Instead, they're the subject of further debate. While, at times, the political process can distort budgetary priorities, businesses don't have to fall prey to that problem. Instead, the approval process can be an opportunity to take another view of how your company is spending its funds.
Executing the