Lesson 2 – What are the steps to create a budget?

Below are the steps to take to create your budget:

  • Review current and prior year actual income and expenses.
  • Budget must be segregated by program and department.
  • Review grants.
  • Review with program directors.
  • Factor in new salary positions, cost of living increases, increases in overhead and additional program needs.
  • Budgets should be balanced — Revenue and expenses are equal.
  • Budget must be entered on a month to month basis to account for variables for time of year.
  • Determine if your budget incorporates an allocation of indirect costs to programs.
  • Must be approved by treasurer, finance committee, grantors and board of directors.