Page 207 - Budgeting for Managers

Budgeting for Managers
190
There are a number of advantages of the 15-month budget.
•When you sit down to plan the year’s budget, you’ve
already got the first quarter done.
• It’s very good for seasonal businesses. When you’re think-
ing about this spring, for example, you’re thinking about
next spring as well.
•By getting into the habit of planning every quarter,
instead of only once a year, you get better at estimating
and planning.
•Each budget is effectively made twice: once, 15 months
ahead, and then again when the year is planned and
approved. As a result, the budget is more accurate.
•You have more opportunities to think about how the work
is going when you make your work plans and estimates.
By working with a 15-month budget every quarter, you’ll
make estimation and budgeting a routine part of your manage-
ment work, rather than a chore. This will give you better budg-
ets and make it easier to bring your work plans, your team, and
your budget together to succeed.

Manager’s Checklist for Chapter 12
❏ What more can you learn about your company and the
budgeting process to improve your negotiating position?
❏ What are the five things you might do if you find that your
estimate from last year was off from the actual results?
❏ What could you do to have enough time to prepare budg-
ets? What would the barriers be? Could you get the infor-
mation you need in time? Could you convince others to
work with you far enough ahead of time?
❏ Can you prepare templates for next year’s budget now?
❏ Would the 15-month budget help your department?
❏ Make a list of three things you could do to manage your
department’s budget and three problems you need to