What is Budget Manual?

To be useful, a budget requires a substantial amount of time and effort from the persons who prepare it. This process can be improved by the availability of an organizational budget manual, which is a detailed set of information and guidelines about the budgetary process. The manual should include
1. statements of the budgetary purpose and its desired results;
2. a listing of specific budgetary activities to be performed;
3. a calendar of scheduled budgetary activities;
4. sample budgetary forms; and
5. original, revised, and approved budgets.
The statements of budgetary purpose and desired results communicate the reasons behind the process. These statements should flow from general to specific  details. An example of a general statement of budgetary purpose is “The Cash Budget provides a basis for planning, reviewing, and controlling cash flows from and for various activities; this budget is essential to the preparation of a pro forma Statement of Cash Flows.” Specific statements could include references to minimum desired cash balances and periods of intense cash needs.

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