Page 117 - Budgeting for Managers

Budgeting for Managers
100
The Later,
information from one
the Better
worksheet to another need
When creating links between
to be checked several
spreadsheets or copying figures from
one spreadsheet to another, it’s best cell. Formulas that copy
times, both on the screen
to finish each spreadsheet and check and also in print.
it thoroughly before you create for-
mulas that link worksheets or copy Verifying Budgetary
the data from one worksheet to Assumptions
another.That way, there will be fewer
changes to spreadsheets and less Once all of your spread-
chance that errors will creep in. sheets are checked and
correct, you need to verify
that the budgetary assumptions are accurate and appropriate.
Here are some things you should do to check your budget-
ary assumptions:
•Have someone read the budgetary assumptions for clarity
and ask you to revise anything he or she doesn’t under-
stand.
• Have someone proofread the budgetary assumptions,
paying close attention to the names and locations of doc-
uments and sources.
•Use a buddy-check to make sure that each assumption is

Less Is More
Most new managers want to explain their thinking for every
line of the budget.As a general rule, however, the financial
department wants very few comments. Professional accountants docu-
ment only those items that are unusual, don’t follow standard account-
ing procedures, or have to account for missing information.
If you want to check your own work carefully, you can write out a list
of your own methods and steps.You might make notes about which
items were estimated from past figures, which were estimated from
work plans, and who you talked to. But, when it comes to presenting
budgetary assumptions, you might present only two or three of the
dozen or more notes that you made.