Preparing a Budget

Starting point – identify key factor restricting organisations growth such as sales, human resources, physical space. All other activities determined by constraining factor.

The Benefits of Budgets

Various potential benefits of budgets & budgeting such as: coordinating business and service operations plan ahead – often reveals need for action which may have been otherwise forgotten learn – effective budgeting systems contain feedback loops motivating managers budgetary targets focus attention Performance judged against targets – must be achievable, realistic, negotiated rather than imposed. If not, they can demotivate. […]