Page 99 - Accounting Best Practices

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Exhibit 5.1 Summary of Budgeting Best Practices Budgeting Best Practices
Best Practice Cost Install Time
Budget Assumptions
5–1 Clearly define all assumptions
5–2 Clearly define all capacity levels
5–3 Establish project ranking criteria
5–4 Establish the upper limit of available
funding
5–5 Identify step-costing change points
Budget Models
5–6 Budget by groups of staff positions
5–7 Create a summarized budget model for
use by upper management
5–8 Include a working capital analysis
5–9 Link to performance measurements
and rewards
5–10 Use activity-based budgeting
5–11 Use flex budgeting
Budget Management
5–12 Automatically link the budget to
purchase orders
5–13 Issue a budget procedure and timetable
5–14 Purchase budgeting and planning
software
5–15 Reduce the number of accounts
5–16 Revise budgets on a quarterly basis
5–17 Simplify the budget model
5–18 Store budget information in a central
database
5–19 Use on-line budget updating
5–20 Use video conferencing for budget
updating