Reference no: EM133233568

You will need to perform each of the following steps to prepare the budget information: 

• Determine the scope and nature of budgets that are required and confirm with relevant personnel. 
• Identify and document the data and data sources required for the budget preparation.
• Access and interpret the data required for the budget preparation. Document the interpretation.
• Identify and analyse any internal and external factors that may potentially impact on the budget. Document the analysis.
• Consult with and provide opportunities for colleagues to contribute to budget planning process.

Complete the following steps to prepare and draft the budget within the designated timelines:

• Draft the budget based on your analysis of all available information.
• Estimate the income and expenditure of the business, and support this estimate with valid, reliable and relevant information. Document the estimation and support.
• Ensure to reflect the organisational objectives within the draft budget. Document the reflection.
• Assess all relevant options and recommendations, and present them in in a clear format.
• Circulate the draft budget to all colleagues and managers for input.

Perform each of the following steps to finalise the budget within the designated timelines:

• Follow organisational policies and procedures to negotiate the budget with relevant personnel. 
• Agree on modifications with relevant personnel, and incorporate them into the budget.
• Complete the final budget in a clear format and within the designated timelines.
• Inform colleagues of the final budget decisions and their applications within all relevant work areas, including informing them of new or changed reporting and financial management responsibilities.

Once you have developed your budget, you will need to complete the following steps to monitor and review the budget against performance over its life cycle:

• Review the budget on a regular basis to assess the actual performance against the estimated performance.
• Prepare accurate financial reports.
• Incorporate all financial commitments into budget and budget reports.
• Investigate and take appropriate action on identified significant deviations.
• Analyse any changes in the internal and external environment, and make any necessary adjustments.
• Collect and record all relevant information to assist in future budget preparation activities.