The global skills and competency framework for the digital world

Budgeting and forecasting BUDF

Developing and managing financial budgets and forecasts to enable effective decision-making and resource allocation.

Revision notes

Updates for SFIA 9

  • This is a new skill introduced in SFIA 9.
  • Theme(s) influencing the updates for this new skill: Application of SFIA skills for finance and FinOps.
  • Previous SFIA assessments or skills mapping of other SFIA skills may be impacted by this new skill. e.g. Financial management

Guidance notes

Activities may include, but are not limited to:

  • gathering and analysing financial data to prepare budgets and forecasts
  • selecting and applying appropriate budgeting and forecasting methodologies and tools
  • incorporating scenario planning, sensitivity analysis and risk assessment into the budgeting and forecasting process
  • presenting budget and forecast information to stakeholders and facilitating data-driven decision-making
  • developing and implementing budgeting and forecasting strategies, policies and processes aligned with organisational objectives
  • driving the adoption of good practices 
  • providing strategic insights and recommendations based on budget and forecast analysis
  • ensuring compliance with accounting standards, governance, legal and regulatory requirements
  • applying budgeting and forecasting to cloud computing and FinOps contexts, such as consumption-based pricing, rapid scalability, and the need for real-time cost-visibility and optimisation.

Understanding the responsibility levels of this skill

Where lower levels are not defined...
  • Specific tasks and responsibilities are not defined because the skill requires a higher level of autonomy, influence, and complexity in decision-making than is typically expected at these levels. You can use the essence statements to understand the generic responsibilities associated with these levels.
Where higher levels are not defined...
  • Responsibilities and accountabilities are not defined because these higher levels involve strategic leadership and broader organisational influence that goes beyond the scope of this specific skill. See the essence statements.

Developing skills and demonstrating responsibilities related to this skill

The defined levels show the incremental progression in skills and responsibilities.

Where lower levels are not defined...

You can develop your knowledge and support others who do have responsibility in this area by:

  • Learning key concepts and principles related to this skill and its impact on your role
  • Performing related skills (see the related SFIA skills)
  • Supporting others who are performing higher level tasks and activities
Where higher levels are not defined...
  • You can progress by developing related skills which are better suited to higher levels of organisational leadership.

Show/hide extra descriptions and levels.

Levels of responsibility for this skill

2 3 4 5 6

Budgeting and forecasting: Level 2

Level 2 - Assist: Essence of the level: Provides assistance to others, works under routine supervision, and uses their discretion to address routine problems. Actively learns through training and on-the-job experiences.

Assists in gathering financial data and preparing basic budget templates under supervision.

Supports the budgeting and forecasting process by completing assigned tasks.

Budgeting and forecasting: Level 3

Level 3 - Apply: Essence of the level: Performs varied tasks, sometimes complex and non-routine, using standard methods and procedures. Works under general direction, exercises discretion, and manages own work within deadlines. Proactively enhances skills and impact in the workplace.

Performs specified tasks in the budgeting and forecasting process, including data analysis and report preparation, using standard methods.

Identifies and resolves routine budgeting and forecasting issues.

Communicates budget and forecast information to relevant stakeholders.

Budgeting and forecasting: Level 4

Level 4 - Enable: Essence of the level: Performs diverse complex activities, supports and guides others, delegates tasks when appropriate, works autonomously under general direction, and contributes expertise to deliver team objectives.

Contributes to the development of budgets and forecasts for specific areas of responsibility.

Gathers and analyses financial data and prepares budget templates and reports.

Supports stakeholder communication and collaboration in the budgeting and forecasting process.

Budgeting and forecasting: Level 5

Level 5 - Ensure, advise: Essence of the level: Provides authoritative guidance in their field and works under broad direction. Accountable for delivering significant work outcomes, from analysis through execution to evaluation.

Leads the development of budgets and forecasts for a department or function.

Provides authoritative advice and guidance on budgeting and forecasting practices. Selects and applies appropriate budgeting and forecasting methodologies and tools.

Incorporates scenario planning, sensitivity analysis and risk assessment into the budgeting and forecasting process.

Collaborates with stakeholders to align budgets and forecasts with organisational objectives and business metrics.

Budgeting and forecasting: Level 6

Level 6 - Initiate, influence: Essence of the level: Has significant organisational influence, makes high-level decisions, shapes policies, demonstrates leadership, promotes organisational collaboration, and accepts accountability in key areas.

Develops and implements budgeting and forecasting strategies, policies and processes aligned with overall organisational objectives and business metrics.

Drives the adoption of good working practices across the organisation.

Oversees the development of complex financial models and scenario analyses to support strategic decision-making. Provides insights and recommendations to optimise investments and resource allocation.

Collaborates with senior leaders to ensure budgets and forecasts support long-term organisational goals and drive value creation. Sets the vision and direction for budgeting and forecasting practices.

Keywords
New skill