What is a Budget Manual?

A budget manual contains a set of instructions, showing department managers how to prepare their budgets for the upcoming year. Using a manual standardizes the information that is prepared for the accounting department, while also clarifying the timing for when budget information is supposed to be submitted for review.

When to Use a Budget Manual

Budget manuals are most commonly used in larger organizations where there is a high degree of complexity, requiring more coordination in the preparation of a budget model. There is less need for it in a smaller organization, where operations are simple enough to not require a high degree of budgeting coordination.