Budgeting is a fundamental task for any organisation. Amongst other things, budgets can be used to:
But a budget is only useful if it is prepared with care. This briefing paper will give you a methodical approach to producing a budget and a better understanding of the issues involved.
Who is this briefing paper for?
This briefing paper is for anyone who has to create a budget for a voluntary or community organisation.
What is a budget?
This might seem like an easy question to answer, but it is worth thinking about it in the context of the organisation as a whole. In simple terms, a budget is a list of all planned income and expenditure over a fixed period. This fixed period is usually one year, or it could be the anticipated life of a project. But the budget doesn’t exist in isolation. The budget is your organisation’s plans expressed in financial terms. Any project or initiative you undertake has a financial implication, and your assessment of the costs of carrying out this plan of action is your budget.
For more information on better budgeting and how it could apply to your organisation, please see our Better Budgeting: A CommUNITY Barnet Toolkit.