Budgeting Policy Template

This budgeting policy template has 12 pages and is a MS Word file type listed under our finance & accounting documents.

Sample of our budgeting policy template:

BUDGETING POLICY PURPOSE The purpose of this Budgeting Policy at [COMPANY NAME] is to establish guidelines and procedures for the creation, management, and monitoring of budgets across the organization. This Policy aims to ensure effective financial planning, allocation of resources, and accountability to support our strategic goals and fiscal responsibility. BUDGET DEVELOPMENT Responsibility The Chief Financial Officer (CFO) is responsible for overseeing the budgeting process. Each department or cost center manager is responsible for developing and managing their respective budgets in collaboration with the finance department. Budget Timeline The budgeting process follows an annual cycle, typically commencing [DATE] and concluding on [DATE]. Department heads are provided with specific deadlines for submitting their budget proposals. Budget Guidelines Budgets must align with the company's strategic objectives and financial goals. Assumptions underlying the budget, such as revenue projections and expense estimates, should be clearly documented. Inflation rates and economic factors must be considered when creating budgets. BUDGET APPROVAL Review and Approval Budget proposals are reviewed by the finance department, and any discrepancies or concerns are discussed with the respective department managers. The final budget is subject to approval by the CEO and the Board of Directors. Contingency Funds A contingency fund may be established to cover unforeseen expenses or revenue shortfalls. The use of contingency funds must be approved by the CFO or CEO. BUDGET IMPLEMENTATION Responsibility The finance department is responsible for implementing the approved budget. Department managers are accountable for adhering to their budget allocations. Budget Revisions Significant budget revisions or reallocations require prior approval from the CFO.