How to set up a budget approval workflow
A budget that never gets formally approved is just a spreadsheet. Here is how to collect inputs, route sign-offs, and lock a plan you can hold teams to.
Why the approval step matters
The value of a budget is not the number - it is the commitment behind it. Without a real approval step, department heads never formally own their plan, so variances become debates about whether the budget was ever agreed. A workflow that ends in a locked, signed-off plan turns budget-vs-actuals into an accountability tool instead of a negotiation.
The stages of the workflow
- 1Set top-down targets and assumptions so departments plan within a frame.
- 2Collect bottom-up department inputs against those targets.
- 3Review and reconcile the roll-up against the company target.
- 4Route the consolidated budget for leadership approval.
- 5Lock the approved plan as the baseline for the year.
- 6Track budget-vs-actuals against the locked baseline every month.
Who approves what
| Stage | Owner | Approver |
|---|---|---|
| Department budget | Department head | Finance |
| Consolidated budget | Finance | CFO |
| Final plan | CFO | CEO or board |
| Reforecast | Finance | CFO |
How Fintra runs budget approvals
- Driver-based budgeting collects department inputs against shared assumptions in one model.
- The approved plan locks as the baseline, so it cannot drift after sign-off.
- Budget-vs-actuals reads live GL actuals against the locked plan with variances flagged.
- Rolling forecasts let you reforecast through the year without losing the original approved baseline.
Frequently asked questions
What is a budget approval workflow?
It is the defined path a budget follows from department inputs to a locked, approved plan: set targets, collect bottom-up inputs, reconcile the roll-up, route for leadership sign-off, and lock the baseline. The locked plan then becomes what budget-vs-actuals measures against all year.
Should budgeting be top-down or bottom-up?
Most effective processes are both. Leadership sets top-down targets and assumptions to frame the plan, departments build bottom-up inputs within that frame, and the two are reconciled before approval. Pure top-down lacks buy-in; pure bottom-up rarely adds up to the company target.
Why should an approved budget be locked?
So variances are measured against a fixed, agreed baseline. If the budget can be quietly revised after approval, every budget-vs-actuals conversation devolves into arguing what the number was. Locking the baseline - while still allowing separate reforecasts - keeps accountability intact.
How does reforecasting fit with an approved budget?
Reforecasts are separate from the locked baseline. You keep the original approved budget for accountability and run rolling forecasts alongside it to reflect how the year is actually unfolding. Comparing actuals to both the baseline and the latest forecast gives the fullest picture.
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Fintra collects inputs, routes approvals, and tracks actuals against the locked baseline. Free to start.
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