I don't have too much experience in compiling budget.
I work for a charity with a turnover over 1 M.
My line manager is working on the budget for year 2016/17 now. she compiled budget for all project managers ( we are a charity, there are 8 projects within the charity and a project manager is in charge of a project). Then approved by board of directors and passed to all project managers as the new budget.
but When I read a book regarding how to complie budget. it is the project mangers who actully compile budget for their own project then pass to financial manger , ceo and board for approval. then financial manager can combine all project budgets as the budget for the company .
I'd assume it's just work place semantics. As long as your line manager is able to complete the job to a satisfactory level.
I'd say it is the same as how some bookkeepers stop at trial balance, others submit corporation tax returns. Labels in the real world, outside of textbooks don't really mean much, unless your job is regulated in some way.
A bookkeeper can do what an accountant can do.
A pharmacy technician can not do what a pharmacist can, neither a nurse to a doctor. (In law)
Just my opinion.
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Johnny - Owner of an overly-active keyboard.
A man who can read, yet doesn't, is in no way wiser than a man who can't.
In larger companies you may get several departments doing budgets and then the finance director has to pull it all together into the overall plan. Often when you speak to say the Sales Director and the finance director about even just the top line sales/income in their plans, they can be worlds apart. Sales people get very excitable and think then can sell to anyone, whereas finance directors are more prudent and even fearing the worse. The job of the board is to agree a middle ground for want of a better expression. Often budgets and forecasts may be sensitised ie what happens if top line is eg 10%, or 50% out so the business can be forewarned about any potential action they need to take.
If your finance manager has no experience of running a project within your given area, then as long as they are taking input from the project managers then she can do the budgets. They should also be looking at previously run similar projects/other historical accounts information etc to aid workings.
-- Edited by Cheshire on Tuesday 23rd of February 2016 08:36:13 AM
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
