Page 71 - Budgeting for Managers

Budgeting for Managers
❏ You can get past figures from actual results, estimates, and
❏ When making estimates, there’s often a natural time period
for your estimate. Use that time period, and then use a
54 tax returns.
converter for estimation periods spreadsheet calculator to
calculate for other time periods.
❏ When creating a converter for estimation periods spread-
sheet calculator, be sure you follow the calendar of your
department for hours, shifts, days, weeks, and months.
❏ Remember that you sometimes want to adjust costs for dif-
ferent ways of counting time, as when you want to distrib-
ute an employee’s total salary across his or her productive
work hours. TEAMFLY
❏ Past actual results are the best basis for estimates; you can
get them from accounting or by putting together state-
ments from vendors and customers with the best records
you can find.
❏ Evaluate the quality of records before you use them for
estimating.
❏ You should understand past budget categories, but be free
to consider new ones that make more sense for the way
the department works.
❏ Verify account categories, line item names, and account
codes with the accounting department before you prepare
your new estimates.

®
Team-Fly