Budgeting

Introduction

Budgeting (or Money Planning) is one of the 4 key foundation stones of Financial Management. The other foundation stones are:

  • Money Recording (book-keeping) – see Good Practice Guide no. 4
  • Money Reporting (management and annual accounts)
  • Money Rules (Financial Procedures) – see Good Practice Guide no. 2

A budget is the plan for the whole organisation expressed in terms of money. This guide is based on the production of an annual budget for the organisation but the key principles will also apply to budgeting (or costing) for a funding bid or a project within the organisation. This guide will look at the key aspects of budgeting through a series of questions.

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