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Adding Value to Your Budget
“A solid budget generally includes a macroeconomic forecast for the upcoming year; a description of the business outlook; revenue forecasts by business segments, geography, product lines, and so forth; and pro-forma financial statements, including estimates for the current year, projections for the upcoming year, and comparative numbers from previous years.”
The budgeting process in any organization is critical. Because of how important budgets are to the success of the business, creating a more accurate and reliable budget would provide added value to the process. Two additional pieces could be added to the budget package to improve the quality of the budget numbers and to help explain the rationale behind the numbers: organic and inorganic growth, and capacity costs.
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