What are the Best Practices for Budget Management?
Some best practices for effective budget management include:
Zero-Based Budgeting: Start from a zero base and justify each expense, rather than relying on historical data. Rolling Forecasts: Use rolling forecasts to continuously update the budget based on actual performance and changing conditions. Scenario Planning: Develop multiple budget scenarios to prepare for different potential outcomes. Performance Metrics: Establish key performance indicators to measure financial performance against the budget. Transparency: Maintain transparency in the budgeting process to build trust and ensure accountability.