Tag Archive
Variance Reporting Of Budgeting
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 [...]
Budgeting With an Assumption Base
It would be unreasonable to expect people to spend weeks preparing a document that will never be looked at. If you are a leader of your company, you certainly would not want to waste employee time and effort in a meaningless exercise. If you are a department manager, there is certainly more pressing work to [...]
The Profit-Centered Manager
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 [...]
