Controlling a Budget
Budget control checklist
2. Liaise with the accounts department
Contact the relevant accounts department for your practice, to understand what reports can be generated. This will support your understanding in terms of what can be provided, at what periods, which may include account charts and monthly management accounting reports - i.e. cash flow statements.
3. Early warning systems and indicators
Early warning systems will support you keep track of costs and income. Therefore, you will need to shape control procedures relevant to your practice, using the correct systems, or utilising those available to you. A key consideration hers is for it to be cost effective, while providing the right information, to the right colleagues at the right time.
4. Decide on the appropriate time to monitor budgets
It’s important to get the time scale right in terms of when you decide to monitor your budgets - over-monitoring can result in wasted time and efficiencies, while under-monitoring may reduce your control and visibility. Depending on how you perform vs budget, you can increase or decrease the frequency of monitoring. Some recommendations by the CMI for general budgets are provided below, some, but not all may be applicable to your specific practice.
Future Practice Owner.
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