A budget committee refers to a group whose responsibility is to coordinate the preparation of the budget.
The budget committee maintains the responsibility to coordinate the preparation of the budget. Generally, the committee consists of the president, treasurer, chief accountant (controller), and management personnel from every major area of the organization, such as production, sales, and research.
The budget committee serves as a review board where managers can defend their budget goals and requests. Differences are reviewed, modified if necessary, and reconciled. The budget is then put in its final form by this committee, approved, and distributed.
It is a group of individuals within an organization that generates and looks after fiscal responsibilities for that entity. Generally, in an organization, this committee includes the top management along with the CFO or chief financial officer. These committees usually analyze or evaluate and approve departmental budgets, submitted by the different departmental heads.
This committee can also generate and update the budget manual. A budget manual is a complex set of instructions and guidelines used by large companies for preparing budgets. It is an official group creating and reviewing the best practices and standards for implementing and updating a company’s resource allocation plans and spending while fulfilling fiscal responsibility.
More from this Section
- Capital reserve
The term ‘Capital reserve’ has not been defined by the Companies Act except negatively ...
- Meaning of verification
Meaning of verification is ‘proving the truth’, or ‘confirmation’. An auditor ...
- Correcting entries
Correcting entries refer to entries to correct errors made in recording transactions. ...
- Payment date
On the payment date the company mails dividend checks to the stockholders and records ...
- Depreciation Methods