“Used correctly, a budget doesn’t restrict you; it empowers you.”

(Tere Stouffer, Chief Marketing Officer, LinkedIn)

The best managers are constantly focused on empowerment – whether it’s leading their teams to reach stretch goals, preparing an inspiring presentation for their next staff meeting, or as dry as the concept may sound, budgeting.

Business budgeting – okay, personal budgeting as well- is more than just a necessary evil. A sound budget ensures that people, teams, or departments have the resources to achieve desired results. For managers, a budget also helps:

• Communicate expectations and goals.
• Mobilize teams and stakeholders around common objectives.
• Assess individual and group performance.
• Properly allocate resources.

Whether you truly don’t mind or even enjoy budgeting or you cringe at the very mention of it, you can perfect your process and your related skills in a few different ways.

Budgeting Reminders That Can Help Your Organization Finish the Year Well

Knowing Your Company’s Budget Procedures and Timeline

Don’t go in blind. As soon as it becomes your responsibility, find out everything about your company’s budgeting procedures, processes, and expectations. Also, know when specific deliverables are due. This can help ensure that you connect with everyone involved and manage your time effectively.

Leveraging Existing Financial Data in Your Decision-Making

As your next step in fact-finding, analyze all relevant financial data – think balance sheets, income statements, cash flow reports, and the like – to gain deeper insight into your organization’s financial health and performance. This information can be solid reference material as you determine how to best apportion resources.

Keeping Your Eyes on the Prize

Once you’re clear on your company’s goals, you can start steering everyone on your team toward them. Clear, consistent communication is crucial right from the start. Be sure each member knows that your budget team’s work is typically just one element in a larger picture.

• Break team tasks down into manageable parts. These can be based on budget line items or other smaller deliverables that all add up to the whole.
• Hold regular meetings for progress updates as well as address any unexpected snags. This not only keeps things on track but also helps employees feel more motivated and engaged.

Regularly Evaluating Performance

Throughout the fiscal year, keep track of expenses with an eye on how well they align with budgetary goals. If a particular item is at risk of not being completed or incurring additional, unplanned costs, be prepared to make realistic adjustments elsewhere. Unexpected circumstances can arise – it would be unrealistic to think otherwise – so be sure to maintain flexibility throughout your budget management process.

Call on KeyHR Today

As you develop your workforce and managers to sharpen strengths around budgeting and other key areas, it can help to call on a trusted partner company to assist with the effort. Outsourcing some or all of your HR tasks, including training and development, can often be the right move as you keep your business on the success track. At KeyHR, our account managers are HR specialists, ready to assist and help meet your unique needs and goals. Contact us today to learn more.