Controlling a Budget
What is budget control?
Budget Examples
Income/revenue budgets Expense budgets Profit and loss budgets Cash budgets Project budgets Capital expenditure budgets Fixed and flexible budgets
Budget control checklist 1.Understand the figures
It’s important that you understand how figures in the budget are created. You need to have clear accountability for what you can control, what you can influence, and what it outside of your control.
The minimum requirements are: Types and amounts of authorised expenditures Purposes for which expenditures are made Planned means of financing expenditures.
It is also advised that you familiarise yourself with chart of accounts and main accounting terms including revenue, turnover and cost of sales.
Future Practice Owner.
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