Written by Oluwakemi Ogunfeitimi , Finance & Compliance Analyst at Spurt!
Let’s face it — “budgeting” isn’t the sexiest part of finance. But it is the foundation of smart decision-making. Whether you're building a budget for a startup or a business unit, here’s a quick checklist I use:
1. Start with the "Why"
Don't jump into numbers. Understand the business goals — growth? cost control? new markets? Budgeting without a goal is just number-crunching.
2. Use Historical Data — But Challenge It
Yes, last year’s numbers help. But business isn’t copy-paste. Ask: What’s changed? What’s coming? Use trends, not templates.
3. Be Brutally Honest with Assumptions
Your model is only as good as the assumptions behind it. Inflation, FX, demand curves — list them out. Test them. Defend them.
4. Budget is a Living Document
Set it, but don’t forget it. Monthly reviews + variance analysis = smarter decisions and fewer surprises.
5. Involve People Early
Department heads, ops teams, sales — they have the intel. Budgets built in silos fail fast.
How this checklist changed my game:
Before I started using this framework consistently, budgeting felt reactive — constantly adjusting to surprise expenses or misaligned forecasts.
Now? I spend less time fixing errors and more time providing insights that actually drive decisions. It’s helped me:
Spot cost-saving opportunities early
Build trust across departments
Give leadership more confidence in our financial roadmap
In short, it’s turned budgeting from a task into a strategic advantage.
Quick question: What’s one thing you always include in your budgeting process?
