Budget preparation

All organisations should have a budget. The budget is important for cash flow planning as well as for financial review.
How are you going to achieve the items in your long or short term plans if you don’t know where the money is coming from and how much you have?
Why Budget?
  1. A budget is one of the success plans needed for an organisation.
  1. A budget helps you plan to reach goals within an organisation, making sure you are generating the income you need and are in control of the costs related to the activities.
  1. It allows for performance monitoring
  1. You can aligning financial capability/capacity in achieving strategic objectives.
  1. Helpful when looking to apply for funding and grants
  1. Allows you to set appropriates fees and charges in delivering services.
Consider these points when preparing your budget:
  • Is the timing of membership income correct? Despite membership fees being due in a certain month, it may take another few months for all the fees to be paid.
  • When do you expect to receive any grants or sponsorship money you have acquired (if any)? Some sponsors will pay a set amount each month rather than in a lump sum.
  • Is the dollar value estimated for expenses realistic?  The results from prior years may provide a guide, however some expenses may increase each year.
  • Are any expenses dependent on the number of members?   If so, the budget should be adjusted for any differences once the number of members for the year is known.
  • Your budget should include initial large expenses such as stocking a canteen with drinks.
  • You should ensure that there is always a minimum balance in the bank for any emergencies that arise.
Please find below a list of resources that will assist you.
Resource or link Description
Example Budget This is an example budget that you can use for your association. Add and extract information as required. Thank you to our friends at Southland Softball for sharing this template.