What is one of the first steps to take during the preparation phase of a budget cycle?

Developing a budget calendar is an essential first step in the preparation phase of a budget cycle because it establishes a timeline for all budget-related activities. This calendar outlines key deadlines for various stages of the budgeting process, including when to request data, finalize proposals, and present the budget for approval. By creating this structure, stakeholders are informed about the timeline and can plan their contributions accordingly.

In addition, having a budget calendar helps ensure that all necessary steps are completed in a timely manner, reducing the risk of delays that could impact the final budget's effectiveness. A well-organized calendar fosters communication and coordination among team members, ensuring everyone is aligned with the budget cycle's goals and timelines. This foundational step is crucial for a smooth and efficient budgeting process.