Page 18 - Budgeting for Managers

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Budgeting:

Why and How

Act before there is a problem.
Bring order before there is disorder.
—Lao Tzu
udgeting is more than just a job we have to get done to sat-
Bisfy the financial department. Planning and budgeting can
help us lead our team to success. Sometimes, when we write a
plan, we catch errors. It’s a lot better to catch errors in a plan
than to have problems later on in the office or on the shop floor
because you didn’t catch the errors. In fact, it’s been shown that
good planning will typically reduce the costs of a project by
about a factor of 10.
In this chapter, you will learn how to create a simple
expense budget. There’s a lot here, but don’t worry. Every idea
in this chapter will be explained further on in the book in more
detail. Our goal for this chapter is to create a simple success
together: your first budget. Let’s go!

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