Page 123 - Budgeting for Managers

Budgeting for Managers
106
Expenses
Codes
$12,000
104
Warehouse Server
Warehouse Computers
103
$7,500
Parts Account Year 2003
Graphics Monitors 203 $1,000
Total Parts 200 $1,000
Specialized Software 501 $30,000
Subcontractor Services
Analysis and Design 601 $20,000
Development 602 $15,000
Installation 603 $7,000
Total Subcontractor Services 600 $42,000
Sales Tax 900 $3,535
Expense Total $96,035
Table 7-3. New inventory computer system project
Where did those discounts come from, by the way? The
sidebar, “Saving Money Through Careful Planning,” will show
you. Table 7-4 is a detailed consolidation budget, showing all of
the figures. Later in this chapter, we will show you how to trim it
down to size for different presentations.

Consolidating Budgets
Here are the key steps for creating a consolidated budget
from several smaller budgets.
1. List all of the account codes in Column B, with a code for the
group total beneath each group.
2. List the account groups and line items (sub-accounts) in Column A.
3. Create a column for each budget you are consolidating.
4. To the right of those columns, create a total column.
5. Copy numbers from each sheet to the appropriate column, making
sure to match line item numbers.
6. Total each line item across.
7. Total each group down.
8. Put a grand total at the bottom.
9. Put in appropriate cross-check calculations to verify this spread-
sheet to its source spreadsheets.