There is no fixed rule about this. A budget can cover any time from months to years. With an overall budget for an organisation, you need to budget for at least three years. This shows a sense of commitment and continuity.

If you are preparing a budget for more than one year, you must remember to add on a percentage to cover the cost of living increase for each year. This is called ‘inflation’. So, if salaries cost R60 000 in 2015, they should cost R66 000 in 2016 if the cost of living goes up by 10%. Find out what the cost of living is by reading the financial section of the newspapers or by talking to an accountant.

When preparing a budget for more than a year, you need to remember that some projects could expand. The office may also set up new projects, bring out a new publication, get new staff and new equipment.