The starting point in the budgeting process is the c sales budget.
The sales budget is crucial because it provides the foundation for other budgets. It estimates the expected sales for a specific period, typically broken down by month or quarter. This information is vital for predicting cash flow, determining production needs, and setting marketing strategies. Once the sales budget is established, other budgets such as the production budget and cash budget can be prepared based on these sales projections. Therefore, starting with the sales budget ensures that the financial plans are aligned with anticipated revenue.