Revenue Goals

• Revenue goals are listed at the top of the income statement and are the most important element of a budget proposal. All other costs and income flow from the top line down. Revenue goals are broken down by each type of income to their smallest level of granularity so that each manager can attempt to be as accurate as possible on their business unit's revenue targets.
  
  

Capital Expenditures

• Capital expenditures will be listed on a budget proposal for the balance sheet and statement of cash flows. These can include tangible assets, intangible assets, goodwill or other potential investments. While they may not immediately show up in the income statement as a revenue generating line item or a cost, however they have a huge impact on the cash flow of the firm and must be properly accounted.
  
  

Line by Line Expenses and Cutbacks

• A budget proposal will include line by line expense analysis for all operating an gross costs. These can highlight anything from rent, to utilities, to human resources to cost of goods. Some budget proposals calculate these costs as a percentage of total costs or total revenue. This helps managers get a better idea of the expenses that consume the most resources. Cutbacks can then be allocated to make the most efficient uses of capital.
  
  

Change from Previous Period

• A good budget proposal will include clear comparisons to previous time periods including previous months, quarters and years. Managers use these comparisons to create a standard to analyze their progress and to help them make predictions. These benchmarks can be used in company, unit and manager performance evaluations as well.