So most companies have a big corporate office and a bunch of regional offices that they allocate money to, I get that. Let’s say a given office gets a $500,000/yr operating budget (just throwing out a random number). How do they spend exactly $500,000? Because they obviously don’t want to go over budget but they don’t want to have a surplus and lose $ next year. So is there wiggle room? Would they spend $499,995 or something?
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the short version is financial planning.
going over is a problem (although sometimes not if you’re like “well i know our budget was $500,000 but our building got hit by a tornado and we needed to replace a bunch of stuff so we went over by $100,000” a parent company realizes that some shit you just can’t control)
if you’re significantly under you can do things like buy office upgrades (maybe the fridge is super old) or the like or give out bonuses. some orgs i imagine also let you roll over a small amount of extras into like a rainy day fund or just to use it the next year
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