Page 37 - Budgeting for Managers

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The Parts of

a Budget

The whole is greater than the sum of its parts.
—popular saying

n Chapter 1, we introduced an expense budget for a single
Iyear. Now, we will look at the bigger picture of budgeting. In
the first section, we’ll look at shorter-term (monthly) and
longer-term (multi-year) budgets and how they link together. In
the next section, we’ll look at how the work you plan to do is
the best source of information for your budget. Then, we’ll take
a look at forecasting income. We’ll close the chapter by intro-
ducing some terms and concepts from accounting. You don’t
need to know accounting to be a good manager and to prepare
a good budget for your department. But it’s always easier to use
good ideas when we can, and accounting offers us some good
ideas for ways to make budgets.

Time Periods of Your Budget
Time is a very important consideration in good budgeting. Do
we want to plan the budget for days, weeks, months, or years?

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