How would you approach budgeting and forecasting for a large organization?

Sample interview questions: How would you approach budgeting and forecasting for a large organization?

Sample answer:

Approaching Budgeting and Forecasting for a Large Organization

1. Involve Key Stakeholders: Engage department heads, senior executives, and other relevant individuals early in the process to gather their input and ensure alignment with strategic objectives.

2. Establish a Framework: Develop a clear and comprehensive budgeting framework that outlines the process, timelines, responsibilities, and assumptions used in budgeting and forecasting.

3. Gather Historical Data and Benchmark: Collect historical financial data and benchmark performance against industry peers to provide a baseline for forecasting.

4. Develop Assumptions and Drivers: Identify key assumptions and drivers that will impact the budget, such as market trends, economic indicators, and regulatory changes.

5. Bottom-Up and Top-Down Approach: Utilize a combination of bottom-up and top-down approaches to gather input from individual departments and align it with overall strategic objectives.

6. Scenario Planning: Develop multiple budget scenarios to account for potential un… Read full answer

   Source: https://hireabo.com/job/1_2_39/Financial%20Services%20Manager

   Interview question