What does bottom-up budgeting primarily involve?

Bottom-up budgeting primarily involves input from all levels of an organization. This approach encourages participation from employees and managers at various organizational levels, allowing them to provide insights based on their firsthand knowledge of resources, needs, and challenges.

Involving a wide range of stakeholders helps ensure that the budget reflects the realities of different departments and teams, leading to a more accurate and realistic financial plan. By consolidating the inputs from different levels, the organization gains a comprehensive view that can foster engagement and ownership among employees, which may lead to better alignment with strategic goals.

This collaborative method contrasts with other approaches where only top management or selected groups contribute, potentially overlooking critical insights from those who operate on the frontlines of the organization.