What process involves creating a financial plan for an upcoming year?

The process that involves creating a financial plan for the upcoming year is budget preparation. This process includes the estimation of future revenues and expenses, setting fiscal goals, and planning how to allocate financial resources accordingly to meet the needs of the condominium corporation. Budget preparation is crucial as it provides a roadmap for financial management, helps in forecasting financial performance, and guides decision-making for expenditures in various areas such as maintenance, improvements, and administrative costs.

While financial audits are conducted to review the accuracy of financial records and ensure compliance with regulations, they do not involve planning for future financial activities. Expense planning typically involves reviewing and managing costs that may arise during a specific period, but it doesn’t encompass the comprehensive process of crafting an overall financial plan. Resource allocation entails distributing available resources across various departments or projects but is not specifically about forecasting and budgeting for the upcoming year as the budget preparation process is.