Bottom-Up Budgeting

Bottom-up budgeting is a method where employees at all levels within an organization contribute to the budgeting process. Instead of top management deciding the budget based on high-level forecasts, individual departments assess their needs and propose budgets based on their specific goals and requirements. These proposals are then combined to form a comprehensive budget for the entire organization. This approach encourages employee involvement and can lead to more accurate and realistic budgets, as those directly involved in operations provide insights on what is necessary for success.