Budget Working Proof of Concept Study Group

This blog post summarizes information related to the creation of a budget using a model-driven approach.  Here is the fundamental information.

The approach that I have learned to use when creating a budget is to create the budget within the context of a complete set of financial statements including a balance sheet, an income statement, a cash flow statement, and a statement of changes in equity.  Why?  The reason for this is that it maximizes the probability that errors will be apparent to the creator of the budget and reviewer of the budget.


Rules for creating the budget are specified per the theories that make up the Financial Statement Mechanics and Dynamics.

For more information related to what an entire set of working papers and reports for a budget might look like, please see the Canonical Accounting and Audit Working Papers reporting scheme and this video which walks you through that working prototype.

Additional Information: 
Step 1: Add "Cost of Sales" and "Sales, General, and Administrative Expenses" details.

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