Budgeting Basics and Beyond

3.6. Budget Calendar

The budget planning calendar is the schedule of activities for the development and adoption of the budget. It should include a list of dates indicating when specific information is to be provided by each information source to others. A budget calendar should be prepared for the timing of each aspect or operation of the budget. A timetable must be given to operating managers to submit their proposed budgets so the overall company budget may be prepared on time. The schedule of due dates for documents and reports must be adhered to. Review and approval dates should also be specified. The schedule dates should be realistic and attainable.

A company can begin the process by issuing a budget preparation calendar, which consists of an overall review of each sequential step in the budgeting process. Accompanying this is a rough time schedule in which the budgeting process will be implemented identifying deadlines, the personnel responsible, and those to receive this information. The plan furnishes the structure of the budgeting process and the overall objectives. These items are crucial for the budgeting process and must be completed before the process can proceed. An illustrative budget calendar for a company is presented in Exhibit 3.5.