Update the budget model. All the budget information has to be collected and input into a master budget model. Verify that payroll tax rates in the model are updated for the budget year. Update the depreciation expense in the model, based on the fixed asset disposal and capital budget request information already received.
Review the budget. The managers meet with the senior management to review the budget ,any constraint issues or funding limitations have to be highlighted. Also test for the validity of the turnover ratios for accounts receivable, inventory, and accounts payable in relation to historical metrics, as well as sales per salesperson. Amy recommendations or notes by senior manahement have to be forwarded to the managers involved in budget development and they should do any modifications necessary. …show more content…
The board of directors have to approve the budget.
Issue the budget. Create a bound version of the budget and distribute it to all authorized recipients.Load the budget. Load the budget information into the financial software, so that you can generate budget versus actual reports.Verify loaded budget. Compare the budget loaded into the accounting software to the approved budget version, and adjust for any errors.Lock down budget. Initiate password protection of the budget model. Also, create a copy of the model and archive the