When setting your budget, there are two main techniques that you can use:
1. Incremental budgeting
Incremental budgeting involves taking last year’s figure and adding a bit on for inflation or whatever, or even taking a bit off, due to perhaps, downsizing.
The preparation of budgets requires the collection of data. This data will be used to justify the projected expenditure. Consequently it must be presented in a manageable way in order that your case receives the attention it deserves.
It is a good idea to follow the format of a report or business plan, presenting first a summary and then backing it up with the hard facts, subjective information and forecasts that formed your final proposal.
Making the information easy to read and accessible increases your chances of success. People will not go to great lengths to attempt to unravel a complicated or unwieldy document.