Page 302 - F2 - MA Integrated Workbook STUDENT 2018-19
P. 302
Chapter 13
The budgetary process
The process of preparing and using budgets will differ from
organisation to organisation. However there are a number of key
requirements in the budgetary planning process.
3.1 The budget committee
The need for coordination in the planning process is paramount. For example, the
purchasing budget cannot be prepared without reference to the production budget.
The best way to achieve this coordination is to set up a budget committee. The
budget committee should comprise representatives from all functions in the
organisation.
The budget committee should meet regularly to review the progress of
the budgetary planning process and to resolve problems that have
arisen. These meetings will effectively bring together the whole
organisation in one room, to ensure a coordinated approach to budget
preparation.
3.2 The budget manual
A budget manual is a collection of documents which contain key information for those
involved in the planning process:
The budget process.
Organisation chart.
Budget timetable.
Proformas.
Account codes.
Key assumptions.
Budget Officer.
294
