This refers to the policies and procedures adopted by an organisation to forecast its future performance.
Budget processes are typically applied to financial forecasting. Examples of budget processes include incremental and zero based budgeting. Budget processes may include a hierarchy of budgets feeding into a master budget, which may also feed a funding or cash budget forecast. The processes will include both forecasting activities and in-period budget monitoring, with corrective actions where necessary. In large organisations the process may be overseen by a budget committee.
Budget processes is a term normally found in management accounting.
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