Do:
Be realistic.
Take last year’s budget and actual results into account.
Be aware of fixed and variable costs.
Develop budget lines that reflect your operational plans and responsibilities.
Gather complete information.
Decide whether to base your budget on historical facts, or to use a zero- based approach, or a little of both.
Don’t:
Make overoptimistic projections.
Leave too little time to complete your budget—accept that it is time- consuming work.
Draw up a budget without involving your employees and others who can offer insights.