Contents of a Budget Manual.

Effective budgetary planning relies on the provision of adequate information to the individuals involved in the planning process. Many of these information needs are contained in the budget manual. 

A budget manual is a collection of documents that contains key information for those involved in the planning process. Typical contents could include the following:

a) An introductory explanation of the budgetary planning and control process, including a statement of the budgetary objective and desired results.
b) A form of organisation chart to show who is responsible for the preparation of each functional budget and the way in which the budgets are interrelated.
c) A timetable for the preparation of each budget. This will prevent the formation of a ‘bottleneck’ with the late preparation of one budget holding up the preparation of all others.
d) Copies of all forms to be completed by those responsible for preparing budgets, with explanations concerning their completion.
e) A list of the organization’s account codes, with full explanations of how to use them.
f) Information concerning key assumptions to be made by managers in their budgets, for example the rate of inflation, key exchange rates, etc.
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