A budget maps out the money you have coming into your organisation, called income, and the money going out, called expenditure. It is usually calculated over a year, including income and expenditure for all your group’s activities during that period. The income and expenditure figures need to match up if all your activity is to be properly funded.

But, if there is a variance in the funding either way, don’t panic, as there is bound to be a surplus or deficit with a forward plan, especially for new groups. The budget has already served an important purpose and alerted you to a potential problem – the crucial thing is to understand why, and work out what to do about it.

Accurate costing is essential. You need to know – as near as possible – how much it is going to cost to run both your organisation and the service or activity.

It is important to remember that no budget is ever 100% accurate. It is your best guess of what money you think you will need at the time of drawing up your plan. Things can change during the year; you may have unexpected costs or even spend less on some things. You need to keep an eye on your budget and review it from time to time. The more time and thought you put into planning it, the more accurate it is likely to be.