30 Pages

Section 5 Financial resource planning – writing a budget

This section concentrates on the principles behind the process. It begins by asking you to think about the parameters within which your forecast is prepared. How does it relate to the wider strategy of your organization? Have any ceilings been set to spending or production – and are these limits immovable? You will explore how you can gather information you can use on future expenditure and income, and look at the various ways in which the costs of resources are classified. You will also be encouraged to look at your own budget forecasts with the kind of scrutiny that they will receive when you present them for approval.