budget development
Oddly, budgeting is not discussed until late in this course. In fact it's the last module before the suggestion is even made that accounting staff be involved, and budgets written. It seems to me consideration of costs and potential revenues should be involved throughout the entire process.
Stephanie ,
We agree. Budgeting is important skill for anyone running a business, family, or life. It doesn't really have to be complicated. It's about a plan, implementation, and asking oneself - how am I doing? We think that when budgeting sounds like accounting or bookkeeping it feels a bit scary. So keep it simple and everyone should embrace budgeting. Thanks, Susan
Dr. Susan Schulz
Budgeting is my least favortite subject, but the most important component to a successful massage program! Without knowing your costs, how can you effectively price your tuition? Here at the college, we are not a for-profit yet we have budgets and benchmarks for enrollment in our classes. We still must pay our way or find our program being cut back or eliminated. I think it is a subject that we attempt to introduce to our students because without an understanding of budgeting, how can a LMT run a business that can thrive or survive?
Hi Cathy, You've done a great job of showing why planning a budget and watching income and expenses are so important. A school, like a business, needs to be self funding and yield a profit. And of course at the same time offer students excellent training and student services. It takes a lot of detailed planning to put a plan in place plus effective accounting and bookkeeping systems to keep things running smoothly and profitably. Thanks, Susan
Budget development is key to any company's success. The budget involves every department's reliabe input begininng with sales projections to office expense. Tution Income results from enrollment, retention and tuition increases. A budget can be developed based on projected enrollment increases. These increases will develop from marketing and advertising efforts. As the percent of enrollment increases these expenses will have a direct reflection of the total tuition income. As actual income and expenses are incurred the budget might need to be adjusted and closely observed by management to stay profitable. Changes are often necessary end much easier to detect following a budget.
Interesting strategy, Vicky. Sounds like you are talking about the brainstorming phase of planning. Ask for ideas and make it rule that they all be considered good. That frees up people to say what they want knowing they won't be criticized. It allows people to build on the ideas. Then when you decide on the top plans it is important to add the financial and human resources as well as regulatory requirements. Thanks, Susan
To start with plans first vs budget could have some advantages.Start with a "wish list" of what the advisory board would like to see in five years without the limitations or worries of the financial available for it. This way, planing first, budget later will "free" your staff involved to allowe them to list great ideas that probably would not come out if there is a limiting factor like how much money we have for that.
Vicky Berlin
HI Denzil
Totally agree that creativity shouldn't be curtailed by budget constraints. Have to use creativity to figure out how to make things happen and have the funds to do so.
Best wishes
Susan
While I agree that budgeting is a critical element in the planning process, it is difficult, if not impossible to develop new and exciting ways of looking at what is provided if those new and exciting ways have to be within the current budget.
Fiscal staff should definitely be involved in every step of the planning -- for advice and counsel. But the planning group should not dismiss a proposal solely on the basis of cost. Often there are process improvements or changes which can provide the savings to underwrite the changes.
Denzil Verardo, Ph.D.
Hi Jan
Great point that budget should be top of the list in any planning. It's important for everyone to understand there are costs to running a school, how each person impacts on revenue, and how budget and control is the major way to meet expenses, deal with growth, and stay in business.
Best wishes
Susan
Linda,
I agree that budgeting is top on my list. Potential revenue has to be considered at the same time as additional expense. Revenue must be the outcome of any plans for expansion or goals.
Hi Byron
As you have identified, budgeting can be the heart of an organization. Part of planning is budgeting. How to get more money coming in and less going out. Always a challenge. Takes careful planning, monitoring, and controlling.
Best wishes
Susan
budget is the maine topic in my department and I never have as much in our budget that we would like.I agree Byron
Hi Linda Great point. Budget considerations should be part of every decision.The planning exercise is not necessarily sequential. It is necessary to go back to each topic. Thanks; Susan
