Budgets are crucial to any economic activity, and setting the right one can be challenging because all the parts involved need to be on the same page. Whether you are trying to set the budget for a department or a specific project, you will have to face a type of pitch: sending a budget proposal.
Since that proposal will have to face an approval chain, you must make sure it’s bulletproof. Hence, the best thing you can do is start from a budget proposal template.
What Is a Budget Proposal?
A budget proposal is a document you present to receive the funding your department or project needs. It’s a justification for the costs involved in a specific activity, so it has to be as detailed and well organized as possible.
If you turn to budget proposal templates, you are more likely to create a complete and relevant document that will get your budget approved without any hassle.
Creating and proposing a budget is a complex and challenging action because it involves in-depth research, accounting abilities, as well as a high dose of persuasion.
What Is a Budget Cycle?
The budget cycle is connected to the time frame and the life span of your budget. This term is usually used in large companies or for extensive projects. A budget cycle can spread over a month or a year, depending on the situation.
But all of them have the purpose of helping the financial department make decisions easier, and they have the same stages:
- Developing a budget is the first step. That’s when you consider all the needs, check the records for research, and justify every future expense.
- Approving the budget is the second stage of the cycle, and may take longer than you want. The financial department manages this stage, and your job is to answer any questions they may have before agreeing with you.
- Implementing the budget is the final stage of the cycle. That’s when you start using the money for your project or the activity of your department.
What Should Be Included in a Budget Proposal?
A budget proposal has to be extremely persuasive, but it must be based on facts, research, and analysis to have the results you want. Using a budget proposal template will help you organize your statements and present a clear situation of the costs involved.
These are the main aspects of an efficient budget proposal:
- A presentation of the project, highlighting why it is important and what are the resources involved in completing it.
- The period of performance, showing the number of months the project will take.
- The costs involved, as detailed as possible, and a justification for each of them.
- A summary of the estimated costs.
The budget proposal must end with a mention on the person or team that has developed the budget, and that they used only accurate information to estimate the costs as realistically as possible.
Funding is usually hard to get, and it always involves extended justifications for every dollar spent. That’s why a budget proposal takes a lot of work and must be as accurate as possible.
An excellent budget proposal template is the best tool you can use to get your budget approved. And at CocoSign, you get excellent proposal templates for all types of businesses, including a great budget proposal template.