Most people in a business can affect its financial performance. As a manager you don't have to be a financial expert, but you do need to know how much money is needed, when it is needed and what it is needed for. Here are ten tips which explain how to create and use budgets effectively. A budget is a financial tool which helps you plan and manage successfully. Done properly, it will provide you with clear and concise information, which will support decision making and form the basis of planning.
Budgets are essential to any organization.
They help you to communicate goals, co-ordinate action and they provide a benchmark for measuring performance throughout the year. They can also spark ideas and generate improvements. This means you are more likely to get the resources you need to reach your goals. Organizations use a number of different budget types, such as departmental budgets, to serve particular purposes. These budgets can focus attention on different aspects of your business, including how much you expect to sell, your pricing, new ways of generating profit and new ways of marketing.