Question

Please note the following guidelines for your assignment. Prepare a Budget Proposal for a sport organization of your choice and should also contain the following elements:

Step 1: Develop a Budget Calendar
Step 2: Planning and Forecasting
Step 3: Develop Expense Estimates
Step 4: Develop Revenue Estimates
Step 5: Estimate Preliminary Surplus/Deficit
Step 6: Present, Defend and Seek Approval
Step 7: Administering and Evaluating Budget
a, you are require to do a budget for the sports organization
b, select one of the budgeting approaches that the sport organization uses

Answer 1

Preparing a Budget Proposal involves several steps, including developing a budget calendar, planning and forecasting, estimating expenses and revenues, and predicting surplus or deficit, followed by presenting and obtaining approval of the budget, and then administering and evaluating it. Common budgeting approaches include incremental, zero-based, and program budgeting.

Step-by-step explanation:

When preparing a Budget Proposal for a sports organization, it is crucial to follow a comprehensive approach to ensure financial planning is thorough and purposeful. The steps you have outlined are integral to the budgeting process:

• Develop a Budget Calendar: This step involves setting deadlines for the budgeting process to keep on track.
• Planning and Forecasting: Assess past financial data and predict future financial scenarios to inform budgeting decisions.
• Develop Expense Estimates: Calculate projected costs for operations, programs, events, and any other expenses the sports organization may incur.
• Develop Revenue Estimates: Estimate the expected revenue from various sources such as sponsorships, ticket sales, merchandise, and membership fees.
• Estimate Preliminary Surplus/Deficit: Compare estimated expenses with estimated revenues to determine if your organization is projected to have a surplus or a deficit.
• Present, Defend and Seek Approval: Present the budget to stakeholders, defend the proposals, and seek the necessary approval.
• Administering and Evaluating Budget: Manage the approved budget throughout the year and evaluate its performance for future improvement.

Selecting a budgeting approach depends on the sports organization's size, complexity, and financial needs. Common approaches include incremental budgeting, program budgeting, and zero-based budgeting. Incremental budgeting is often used for its simplicity, as it involves adjusting previous budgets with a set percentage increase or decrease. Zero-based budgeting, on the other hand, requires each expense to be justified from a zero base, ensuring that every dollar spent supports the organization's goals. Program budgeting can also be appropriate, focusing on allocating funds based on programs or projects rather than departmental needs.