If you have to put together an annual budget for your department, your compensation may depend on your ability to stick to it. Here are three tips for creating a manageable budget:
- Stay goal-oriented. If you aim to increase sales, make that your overriding concern. Don’t let other issues sidetrack you.
- Don’t do it alone. Include your team members in developing the budget — they may have knowledge about certain line items that you don’t.
- Question your assumptions. A budget should take current data, add assumptions, and create projections. Be careful about the assumptions you make and question how likely they are to come true. When you present the budget, you’ll need to be prepared to defend them.
Adapted from the Harvard ManageMentor Online Module: Financial Essentials.