Everybody knows how to do a budget ….right ? Not exactly , maybe a simple very limited budget is easy to do but if you want to budget something more complex it can get very tricky.
So what is a budget and why would I need it ?
A budget is the value expression of your strategic plan broken down into operational steps. The budget is actually the monetary result of your planned actions to achieve your goals.
If we talk about a business we might say the following , the budget is the roadmap for the upcoming time periods that shows the simulated/planed result of your actions towards achieving the estimated / expected profits.
The budget is expressing your hopes and is an educated guess of the future.
The complexity of the budget and of the budget process increases exponentially with the increase in size of the organization and accuracy of the budget. For any of our actions and goals we would need some sort of “quantified what to expect view” in order to adjust for unforeseen events and issues. Before you go somewhere by car you plan your trip , make sure that you have enough gas or plan your refuelling and rest stations. A budget is nothing else but your road-trip plan and the budgeting process is the planing for your road-trip.
Especially in business predictability is the keyword for anything. Predictability is expressing an educated potential future outcome . Even if we can not foresee the future we can at least assume that based on certain assumptions we will have an expected results.
Budget and other stuff…..
When we are talking about a business the wrong assumption is made that a budget is only/more for the finance department and that you make up you plan as you go.
Sometimes you might be right and get lucky with your plan as you go approach. This way of seeing things is only valid for a very short term, you can not achieve a goal or target this way.
The budget and budget process is a business tool that is used by companies to steer and manage their actions. The budget is the roadmap for the entire company for the upcoming period that is based on commonly agreed and aligned actions and plans. So every department has a certain contribution to the company budget and therefore every department has its fair share of budget responsibilities. The finance department is usually the facilitator , the project manager of the company budget.
When looking at your budget you must be very clear what your strategic plan is , what your goals are , what your assumptions are for the budgeting period, what type of budget you need, etc.
During our training sessions on budget and budget process we will handle and approach topics like basic concepts of planing , basic accounting terms, primary data gathering , setting responsibilities and actions, presenting your budget , evaluating performance and many more .
What would be the benefits of a training on budget and budgeting process ?
Through a professional training on budget and budgeting process you’ll have the benefits and understanding of the process and have a tool that can support your business.
For more about the budget and budget process topic, inquiries, quotation requests please get in touch with us.