10 Tips for Managing a Budget at Work
By Indeed Editorial Team
Updated March 31, 2021 | Published February 8, 2021
Updated March 31, 2021
Published February 8, 2021
The Indeed Editorial Team comprises a diverse and talented team of writers, researchers and subject matter experts equipped with Indeed's data and insights to deliver useful tips to help guide your career journey.
A company's budget is an important tool that helps them achieve their goals and create revenue projections. However, generating a budget is only the first step toward making sure the company is successful. The next step is to manage the budget effectively. In this article, we discuss what budget management is and give you a list of tips that can help you manage your company's budget efficiently.
What is budget management?
Budget management is the act of tracking income and expenses for the budgets of individual departments of a company. Budget management can also apply to the finances of the company overall. By tracking income and expenses, you can figure out if your company is spending too much, where you can reduce costs or if your company needs to generate more business.
10 budget management tips
Here is a list of 10 tips and techniques you can use to manage your budget at work effectively:
1. Understand the budget's goals
When creating and managing a budget, it's important to understand what the company's goals are for the budget and its finances. When you know a company's projected revenue, expenses and income, you can be better prepared to fix any problems or challenges that might arise.
For example, if you know the company wants to spend less than $60,000 a year, but you've been spending $5,000 every month, you know that your monthly expenses need to lessen to achieve the company's goal.
Read more: What Is a Budget?
2. Make a plan
A great way to manage a budget after understanding its goals is to make a plan toward achieving them. A great way to create that plan is by implementing checkpoints throughout the year to make sure you're fulfilling the company's expectations.
For example, if you know that a company is hoping to achieve $150,000 in income, you can set up a checkpoint every three months to see if the company has generated at least $50,000. If they have, you know your company is moving toward its goal at an effective pace. If they haven't, you might still have time to fix the situation before the fiscal year is over.
3. Use spreadsheets
Spreadsheets are a good way to keep track of your budgetary needs. By creating different pages for income, expenses and revenue and by tracking the budget by the month, you can understand and record your budget more efficiently.
For example, if an executive wants to know more information about an income report from three months ago, you can simply refer to your spreadsheets and quickly generate the report.
Read more: How To Create a Google Spreadsheet
4. Discuss with your coworkers
It's important when budgeting to be open with your coworkers and colleagues. By sharing the budgetary information with them, they'll have a better understanding of what they can accomplish through the resources available to them.
For example, if a colleague wants to start a marketing project to increase customer outreach, having a good understanding of the budget will help them prepare. For instance, they may know that the company can't provide a lot of money for the project, so instead of asking to hire an outside consultant, they might find a more creative way to use the resources and employees they have.
5. Ask for help
It's okay to ask for help with budgeting. Budgeting can be challenging, but your coworkers and managers are there to assist you. Your company might even prefer that you ask about things you're unsure of instead of fixing it yourself.
For example, If you're unsure whether the birthday cakes your manager buys for every staff member on their birthday should be considered a company expense or a personal one, it's better to ask your manager and figure out the answer right away than to guess.
6. Look for new vendors
If you find that your company is having trouble meeting its expense goals, one way to solve the problem is by negotiating with current vendors or looking into new vendors that might sell you the same products or goods at a lower cost.
For example, if your company spends a total of $3,000 on paper every month, try to see if your current paper supplier can sell you their product at a lower cost or perhaps sell you cheaper paper. If they cannot meet those demands, look into other paper vendors. You might find a vendor that meets your budget needs.
7. Search for interns
If your company is having a hard time filling entry-level positions because the budget can't afford them, consider looking for interns who want to gain experience in your industry. This can be a great way to save your company money while providing college students with excellent training and skills.
For example, if your company needs more entry-level communications specialists but the budget can't afford it, contact local universities or colleges in their business and marketing departments and see if any students are looking to gain experience in that area.
8. Hire other businesses
If certain departments in your company are having a hard time meeting their goals and demands, it might be cheaper to contract other businesses or companies to do some of their tasks for them. This could help lessen your company's expenses while saving time.
For example, if your company's marketing team is having trouble generating advertisements for all of their ongoing campaigns, it might be easier to contract another marketing company to complete some of these advertisements themselves. This could lessen the workload for your employees and generate more marketing for the company.
9. Check the budget every month
In between checkpoints, it's important to review the budget every month. By doing so, you're able to understand how your monthly spending affects the yearly budget goals and if one month's poor numbers are due to an isolated problem or a reoccurring issue.
For example, if you know that this month the company's expenses were $2,000 over budget, you can check to see where any extra expenses might have occurred and accurately predict if next month will be the same and how to possibly avoid it.
10. Take a financing class
If you want to continue your education and training in budgeting to do your job more efficiently, there are also short classes you might find at your local colleges or universities. Some of these classes can be completed in just a few days and can teach you a lot of useful information when it comes to calculating and balancing your company's budget.
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