Question

The author of the textbook says, "The narrative comes before the numbers." (1) Explain what this statement means with respect to budgeting. (2) Explain why it is important that the budget "narrative" be drafted first.

Answer 1

• Budgets are basically forecasting the numbers but by considering the qualitative aspect of the forecast.
• Qualitative aspect plays a vital role in the forecasting of numbers.
• Narratives are justification for the forecast.
• Before starting Budget forecasting, Narratives must first be written with clear and plain language wrt each component.
• Budget Narratives are used to achieve project objectives and to correctly forecast numbers.
• So, It can be said that the Narrative comes before the numbers.

• Budget Narratives are drafted first as they set objectives and aim to uncertain future wrt expenses and income.
• Forecasting numbers without budget narratives will make the whole budget useless.
• So it turns important to draft budget narratives first.
  
  
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