The Dreaded “B” Word – Budget

Dec 19, 2013

2013 has almost come to a close and 2014 is not just knocking, but pounding on the door now. You may be tempted to say it’s too late to start a budget now, but I’m here to tell you it’s not!

If you have been out shopping lately or even just driving around you will notice there are a lot of procrastinators out there. Some people just wait until the very last minute, while others are trying to get the best deals. Regardless, it can be quite hectic, but doesn’t mean it’s impossible to do. Just may take a little extra effort. The same somewhat holds true when it comes to creating a budget. If you have not done your budget yet, I’m going to take a wild guess and suggest you are one of those last minute shoppers out there too!

It will take a lot of effort to get everything together in short order, but I feel it is quite necessary! You need to pull all of the departments together to get the necessary information and hold others accountable. Set firm deadlines and stick to them! It is important to analyze the budget and make sure that it is reasonable. Do not just put numbers in a spreadsheet just for the sake of doing it. It is important that you look at past trends and future contracts when setting your budget.

If you do not have a budget for 2014 then how will you know how you are doing? Are you hitting your targets? Do you need to try to cut costs, or increase revenues? Are your costing standards accurate and reasonable? If you do not know what it is supposed to be, how do you know what is-is accurate?

Do not use the fact that 2013 is almost over as an excuse to not do a 2014 budget. Get in gear and do it today! Oh yeah and I said it….BUDGET!

Categories: Cost Accounting