When you consider that budgeting is nothing more than the best possible informed guess about the future, you have to expect some variance to arise. It’s inevitable. But it is not a sign of failure. The variance itself is not the problem. Variances can be positives if used correctly-to discover and reverse unfavorable trends. When [...]
Have you ever noticed that the things you buy every week at the grocery and hardware stores go up a few cents between shopping trips? Not by much…just by a little each week but they continue to creep up and up. All it takes for the price to jump up by a lot is a [...]
The manager who prepares budgets from logical assumptions and then carefully tracks variances and responds is directly involved in making goals happen. This leads directly to higher profits. The manager who is able to put the new budgeting idea into practice will budget more accurately, gain greater control and, to a large extent, will be [...]
