Page 21 - Budgeting for Managers

Budgeting for Managers
Restricted funds Money
the purpose specified in
that you can use, but only
the budget. You will have
for a specific purpose or
to track this money care-
4 with specific limitations or require- use that money only for
ments.
fully and you may have to
work with other restric-
tions on the funds, such as using particular types of contracts or
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submitting receipts that prove how the money was spent.
Three other audiences for your budget are the financial
department, the accounting department, and, possibly, the
human resources department.

The Financial Department
The financial department is responsible for acquiring and plan-
ning for the use of all funds within your company. The budget
you put together becomes part of the whole corporate budget
they create. If your company has an annual report, your plan
and budget will appear as a part of the total financial picture. If
you deliver a clear budget with no errors, you make their work
easier—as well as your own, because you won’t have to correct
it later on. If your team gets its work done well within your
budget, you improve the company’s bottom line and help
ensure success.

The Accounting Department
The accounting department is responsible for managing and
tracking all financial transactions for the company. They will
create account codes for each of your line items and assign
them in their computer
Allocated Assigned to be system. Every time
spent for a particular pur- money is approved or
pose. If your budget is spent, they will track that
accepted, this means that the money event and take from the
has been allocated for the purposes money allocated in your
listed in your budget. Money is usually
allocated for use within a particular budget and show it as
year. actually spent.

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