owh no, in last of month got headache and also need to debt from friend's because of the lack of budgeting money.
What is budgeting?
A brief overview of budgeting concepts: what is a budget, the budgeting process, and keys to a successful budget. To be a successful in planning budgeting, need to have a process in budgeting.
THE BUDGETING PROCESS
Step 1: Planning the Process
- Identify who will coordinate the budgeting process and which staff, board members and committees need to be involved;
- Agree upon key definitions, assumptions and document formats;
- Set timelines and key deadlines;
- Determine and schedule any training or key meetings.
Step 2: Communicating about the Process
- Clearly communicate responsibilities, expectations and deadlines to everyone involved;
- Explain and distribute forms and assumptions.
Step 3: Programmatic Goal Setting
- Determine program goals and objectives;
- Project staffing requirements and salary and benefit assumptions based on program goals;
- Get board agreement on goals and assumptions.
Step 4: Information Gathering
- Research and gather information about income and expenses based on program goals and assumptions;
- Construct budget details by program;
- Communicate regularly to avoid duplication of effort and to share information and assumptions.
Step 5: Compilation and Revision
- Have one person compile all information, review it for consistency and redistribute to everyone involved;
- Leave plenty of time for review and revisions.
Step 6: Committee Review
- Have the finance committee and other appropriate staff and board committees review a budget draft and key assumptions;
- Be sure to allow enough time between committee meetings and the final approval deadline to address questions and recommendations and make revisions.
Step 7: Final Approval
- Distribute information to the board prior to the board meeting, including budget draft, program goals and other supporting information;
- Have program and development committees play a role in making an informative presentation to the board based on the opportunities, challenges and resources behind the budget numbers;
- Have the finance committee or treasurer present the budget proposal to the board.
Step 8: Implementation and Management
- The real work begins once the budget is approved:
- Communicate budget, program goals and timelines for the next year to staff;
- Review actual income and expense compared to the budget on a monthly basis;
- Update and revise the budget as there are changes during the year. Depending on the significance of changes, the board may need to approve revisions.
KEYS TO A SUCCESSFUL BUDGETING PROCESS
- Clearly identify programmatic objectives that are aligned with the mission and strategic plan.
- Determine the financial resources needed and available to achieve program goals.
- Involve staff and board members in the process to improve accuracy of information and commitment to the plan.
- Document! Don’t rely on memory. Write down assumptions and formulas. This will be very important in managing the budget throughout the year.
- Customize your process. The steps each organization takes will be somewhat different.