The Budget Process

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A BUDGET IS A blueprint for achieving specific goals. Your unit’s budget is part of your company’s overall strategy. So you need to understand your company’s strategy in order to create a useful budget.

How can you familiarize yourself with your company’s overall strategy?

  • Watch the overall economic picture. A company’s strategy during a recession will be far different than in a booming economy. Make a point to listen to your manager’s and colleagues’ views on sales and the economy—and make your own observations as well. Are you deluged by résumés, or is good help hard to find? Are prices rising or falling?
  • Stay on top of ...

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