Example budget process
A company with an annual budgeting process might use the following sequence of steps repeated across many organizations to roll up a cash flow forecast:
- Extract previous year's line items
- Apply dollar deflator to find constant dollars
- Prepare description for each continuing line item
- Show project plan for each project line item
- Combine project and continuing line items
- Roll up all departments to determine company cash expense forecast
- Evaluate revenue projections, determine net earnings
- Determine any changes needed
- Notify the departments
- Department revise all inputs
- Repeat 6-8 until no changes needed
