Bottom Up Budgeting

Bottom Up Budgeting

Bottom Up Budgeting

oboloo’s Glossary

Bottom up budgeting is an official business definition used in the process of budgeting and planning. It is a budgeting process that occurs at the operational level of the business and requires input from various departments and personnel to be successful. It begins with individual departments providing their individual budget requests, which are then evaluated by higher level management. This process allows managers to gain insight into the individual needs of each department and to evaluate the cost effectiveness and overall financial impact of the proposed budget. Bottom up budgeting also gives each department a sense of responsibility and ownership within the budgeting process. This allows them to think about their current and future financial needs and to consider how best to manage their resources. It also ensures that each department is able to contribute to the success of the company. Bottom up budgeting can be an effective way of managing resources and ensuring that all departments are able to meet their financial goals.