The budget plays a very important role in companies of all sizes, its preparation can last even a few months.
GRUPPO AMIRA is able to intervene in all phases of the process starting from the definition of the guidelines up to the preparation of individual budgets for preparation of the master budget.
The main phases of preparation are 7:
- 1. Definition of guidelines and budget objectives;
- 2. preparation of the budget and sales: it greatly affects the preparation of other budgets and must be prepared in the initial phase;
- 3. general preparation of the other budgets: the guidelines are distributed to all levels of the organization preparing their budget, starting from the lowest CoR in the organization. These budgets will be communicated to the higher CoRs, which will do the same thing with the successive superiors, going up to the top of the company; These budgets will be communicated to the higher CoRs, which will do the same thing with the successive superiors, going up to the top of the company;
- 4. negotiation: a fundamental phase involving the managers of the CoR who have prepared a budget with their superiors;
- 5. coordination and revision of the individual components of the budget: any changes in the budget to higher levels obviously implies adjustments even at the lower levels;
- 6. final approval and distribution: top management must approve the final budget for it to be put into operation;
- 7. revisions during the year: practice not followed by all organizations.