Budgeting & Forecasting › The Budgeting Process

Who is responsible for preparing a budget?

Beginner

Answer

Responsibility is shared: senior management sets objectives and guidelines, the budget committee coordinates and approves, finance/management accountants facilitate and consolidate, and line managers prepare the budgets for the areas they control. Assigning ownership to those accountable for delivering the numbers improves realism and commitment.
Real-world example Each department head owns their budget, finance consolidates, and the committee approves the whole.

Common follow-ups: What does finance's role involve? | Why give line managers ownership?