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?
In: 485
Obviously different organizations do things differently, but normally as a budget holder you put together a budget, which is a specific month by month account of where you are going to spend money; salaries, services, equipment and so on. That gets submitted and then usually it gets cut. So you then rework the numbers. (E.g. Can’t afford to replace 50 laptops this year, so we’ll replace 20) until the budget is accepted. Then you get a monthly report comparing your budget with your actual spend. If you are over you will have some explaining to do – you will normally be expected to bring it in line in the following month.
Latest Answers