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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Others have detailed the actual reliable methods and strategies for budget management, but from my observations they usually spend as little as possible all year to save for an emergency and then desperately spend everything right at the end to use up the remainder. This also happens in some LLCs where they may get taxed on unspent money.
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