A Smoother Budgeting Process

Regardless of the size and complexity of an organization, the budgeting process will take time and effort.  However, certain actions make the process flow more smoothly:

1) Ensure that top management has identified and communicated the strategies and priorities for the upcoming year.  When top management fails to communicate its priorities to the rest of the company, a lot of frustration and rework occurs.
2) Clearly define the expected results and the individuals or groups responsible for producing them.  Management should clearly set the expectations and requirements for the process.
3) Communicate the requirements.  It is not enough to set expectations - management must communicate these to the key individuals in the process.
4) Establish budget guidelines.  These guidelines help ensure that the numbers submitted will fall within acceptable parameters. 
5) Set realistic deadlines.  Too often deadlines are set arbitrarily and can be modified.  Don’t set your employees up to fail.