HBR 20-Minute Manager Boxed Set (10 Books) (HBR 20-Minute Manager Series)

Finance Basics

52

about capital expenditures such as major upgrades

to the building. But you should include detailed esti-

mates for travel costs, telephones and utilities, and of-

fi ce supplies. As you move up in the organization, the

scope of your budget will broaden. You can assume

that the head of the 12-person offi ce has thought

about printer cartridges and gasoline for the sales

reps’ cars. Your job now is to look at big-picture items

such as computer systems and to determine how all

the smaller-scale budgets fi t together.

Other issues to consider when you’re preparing a

budget:

• Term. Is the budget just for this year, or is it

for the next fi ve years? Most budgets apply only

to the upcoming year and are reviewed every

month or every quarter ...