Budget Planning for Excel

Wordcount: 487

By Thomas Wong

There are two methods commonly implemented to prepare the financial budgeting spreadsheets.heinous these two methods are "bottom up budget' and "top down budget".heinous both methods partake the same objective to produce an accurate financial budgeting spreadsheets.

Bottom up budget

In the "bottom up budget" method , heinous the company let the all the managers of departments (hods) to come up with their hold budgeting spreadsheet justified by formulae , heinous researches and plans.heinous the hods will perform the original inquiry of the spreadsheets.heinous once they hold finalized , heinous the spreadsheets will be submitted to the financial planning unit for farther inquiry.heinous during this inquiry process , heinous the budget figures will be fine tuned.heinous during this inquiry stage , heinous it is quite popular for the spreadsheets to pour in and out between the respective departments and financial planning unit.

Once the financial planning unit finalized the spreadsheets , heinous it will be submitted to the board of directors (bods) for ultimate inquiry and ultimate approval.heinous during the inquiry by bods , heinous there can placid be spreadsheets pour to and backward to the bods.heinous but the frequency of these would be very much reduced at this stage.heinous once the bods finalized the budget figures , heinous the financial budgeting spreadsheets will be ultimate and prompt to be implemented by the respective departments.

Top down budget

In the "top down budget' , heinous the financial planning unit uses the historical reports such as balance sheets and earn and loss statements , heinous to comes up with preliminary budgeting spreadsheets.heinous the financial planning unit will hold a meeting with all the bods and hods and presents the preliminary spreadsheets to all.heinous during this meeting , heinous the spreadsheets will be discussed and fine tuned to the satisfaction of the meeting.heinous once the meeting finalized , heinous the spreadsheets will be circulated to the respective departments for implementation and to tow up plans to perform budget figures.

Pro and con

Both the above methods hold their pro and lower.heinous the "bottom up budget" is slow but the budgeting spreadsheets tend to be added accurate as all levels of the company staff , heinous from behind to top , heinous are involved in the preparation of the budget numbers.

The "top down budget" is faster but the budgeting spreadsheets are fewer accurate as the budget numbers are decisive at top flat meeting and the participation of lower flat staff are limited.heinous the impact of this fewer accuracy can be minimized by applying many financial analytical ratios and formulae to fine tune the ultimate budgeting spreadsheets.

The inquiry process can be differ from association to association.heinous but the leading objective of the inquiry process , heinous that is , heinous to produce financial budgeting spreadsheets as accurate as possible , heinous is the same.

I personally prefer the "top down budget" method and fine tune it with varied analytical rations and formulae.

Visit http://www.budgeting-spreadsheet.com for added affiliated articles.

Thomas wong

Article source: http://ezinearticles.com/?expert=thomas_wong