What is a Budget Manual? – Meaning and definition
A budget manual lays down the details of the organisational setup, the routine procedures and programmers to be followed for developing a budget for various items and the duties and responsibilities of the regarding the operations of the budgetary control system.

CIMA London defines a budget manual as a document schedule or booklet which sets out, inter alia, the responsibilities of the person engaged schedule in the routine of and the forms and record required for budgetary control. Thus, it a written docent which guides the executive in preparing the various budget.
Budgets are drawn keeping in view the objective of the organisation given in the down in the budget manual to avoid any duplications or overlapping of responsibilities. Step and the method for developing the various budget and the method of reporting performance against the budget are written sown in the budget manual.
In short, it is a document which given everything relating to the preparations and execution of the various budget. It should be clear and there should be no ambiguity in it. The manual is dived into separate section appropriate to his work and responsibilities.
Matters Covered in a Budget Manual
The following are some of the most important matters covered in a Budget Manual:
• Introduction and a brief explanation of the objects, benefits and principles of budgetary control.
• Organisations chart giving the of different personnel with full explanations of the duties of each to operating system and preparation of departmental budgets.
• A statement showing the responsibilities and of authorities given to each manager for approval of the budget, showing and all other forms and documents which authorise for approval money. The authority for granting approval must be clearly stated.
• The entire process budgeting program including the timetable for periodical reporting. A schedule should be drawn for this.
• Purpose, specimen form and the number of copy to be used for each report and statement-Budget centres involved should also be stated clearly.
• Length of the budget period and control periods should be clearly started.
• Procedure to be followed throughout the system should be explained in clear terms.
• A method of accounting and control of expenditure.
• Outline of the main budget and their accounting relationships.
• Explanations of key budgets.
Advantages of a Budget Manual
The advantage of being derived from the use of a budget manual is as follows:
- As everyone knows in writing that what is his role, what is to be done and how it is to be done in the system of budgetary control.
- As everything is in writing, ambiguity is avoided and reliance on memory is eliminated.
- As one of the objectives of budgeting is communications, it is important to have a budget manual so that everyone in the organisation can refer to it for guidance and information about the budgetary process.
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