Tuesday, December 21, 2010
As we approach the end of the calendar year, it is good business practice to finalize an operating budget for 2011. Developing annual budgets aides organizations in understanding the amount of income they will need to raise in order to meet expenses and hopefully make a surplus. Start by analyzing year to date actual income and expense figures. Compile input from managers and contractors as to what they project for the upcoming year. Throughout the year assess actual income and expense versus budget on a monthly or quarterly basis and determine any corrections that are necessary.