Budget Basics for Administrative ProfessionalsAdministrative Assistant Resource
March 27, 2014 — 2,854 views
Planning a budget is one of the most essential aspects in any project. A detailed budget plan will make sure you take all the necessary and important decisions that will help the project stay on course throughout the duration of the project. In simple terms, a budget is an estimate of the revenues and expenses of a business over a given period of time. A detailed budget plan reflects how you will be allocating resources during the project, where you can raise revenue from in case of a crisis and so on. Here are some of the basics about budget planning for administrative professionals.
Why is a budget necessary?
A budget is very essential in terms of planning for the future of the project. It covers aspects that include expenses for marketing, expansion and so on. It also gives a clear idea about how to use the revenue to achieve all the project goals in the best way possible. The budget will also provide a clear idea about the cash flow as you will be able to monitor the inflow and the outflow of financial resources by comparing the same with your budget. Planning for a budget will also provide you with a way to procure additional finances through financial institutions in case there is a shortage.
Creating a budget
Creating a budget is not an easy task as you may have to look into several different parameters to make sure that everything has been accounted for. As a result, it is always a good idea to revisit some of the previous budgets that you may have made and use the same as a model. It is also a good idea to do your research and ensure that you are not missing out on anything. Every project is unique may include some trends or expenses that are exclusive to the project. These trends and expenses can be revealed and looked into with thorough research.
How does budget help?
Finally, you may need to know that even though a project fails, the budget plan can provide an in depth insight into the reasons why a project went awry. You can compare your forecasts with actual numbers to find out why the forecasts were wrong. This will allow you to reassess your approach to the project and will help you learn from mistakes. The same is also true about referring to the budget plans of other projects as this can help you avoid some pitfalls.