The budget presented to the bank

First of all, budget, assets and liabilities of the budget revenues and expenditures. budget and cash flow estimates for capital investment. Budgeting - a technology preparation, adjustment, monitoring and evaluation of budget execution, so budgeting becomes very foundation of all intra-technology management. There are two main methods of budgeting from top to bottom and from bottom to top. During the budgeting "top down" budget is based upon the objectives and constraints set by the bank management, which is based on the allocation of resources. Technologically, this is as follows: first, form and budget targets for verifikuyutsya bank as a whole, then formed the basis of their budgets for major divisions of the bank, which in turn are divided into smaller budgets, etc. The disadvantage of this method is considerable expenditure on research of market trends, development strategy of the bank, and finally to build a realistic forecast. In addition, the centralized planning of the units causes a negative reaction on the part of various business centers, dissatisfied with the intervention in their work, as the center visé budgeting a lot of branches of the bank can not take into account all peculiarities of each region. At present, this method of budgeting is popular among large banks in developed countries, because it provides opportunities for strategic planning. Budgeting "bottom up", in contrast, involves recording and processing of budget plans of individual units that constitute the basis upon approval of budgets of larger structures and, ultimately, the whole bank. Technologically, this is by collecting and processing of budget information from artists and managers to lower level managers of larger units, and then to the bank's management. Topic: Fundamentals of Financial Management Bank