Page 149 - Budgeting for Managers

Budgeting for Managers
132
Marketing Department
2003
Expenses
Printing
Utilities $20,000
$20,000
Telephone $1,000
Total Expenses $41,000
Salaries
Manager $45,000
3 Account Reps $75,000
Support Services $35,000
Total Salaries $155,000
Marketing Department Total $196,000
Table 8-1. Sample departmental budget

in advance by saying, “If my department’s budget is reduced
below what I request, please allow me two weeks to submit a
modified budget, adjusting the line items in the way that will
allow us to get the most work done with the allocated budget.”

Delegating Budgetary Authority
When you give a team member the right to spend money,
be sure you explain each of these points.Also, put them in
writing:
• Why is this person empowered to spend money? Is it for conven-
ience, to give him or her control of a job, or for some other reason?
• Which line items can this person spend from?
• What actions is this person allowed to perform? Spend petty cash?
Authorize use of a charge card? Authorize a purchase order?
Authorize a check? Others?
• Is there a dollar limit per expenditure or per month for this person?
• How will you see what spending has been authorized? How fre-
quently? How quickly after money is spent?