What is the first step on preparing an anniual budget ( the first budget to be prepared ) ?

The first budget that has to be prepared is the sales budget. Only then can we prepare other operating budgets such as production budget, Materials Budget, Direct Labor Budget and Overhead Budget. The Capital Budget can be prepared separately. Once these budgets are done, the proforma financial statements can be prepared in the following order: Income Statement, Changes in Equity, Balance Sheet and finally the Cash Flow Statemnt or the Cash budget.

1.  The first Budget to be prepared is the Sales bedget    
2. because the production budget and all the other budgets for the company are derived from the sales budget. If sales are expected to be low, the company does not need as much inventory or as many sales people, and so on. On the other hand, if sales are expected to be high, more of each of these resources will be required.

Prepare a financial project report of the company/enterprise to indicate the resources required per year for the development of the school and also the sources of finance. The report should include capital expenditure i.e. cost of land, construction, furniture, equipment, etc. and also the recurring expenditure for each year