Manager's Toolkit

Budgeting

Seeing the Future

Key Topics Covered in This Chapter

•Essential functions of budgeting

•Types of budgets and their purposes

•Creating an operating budget

•Creating a cash budget

•Applying sensitivity analysis to budgets

 

“GOOD GRIEF, it’s budgeting time again” is a common refrain among managers. Budgeting can cause stress and conflict and can eat up lots of hours. But good budgets are worth the time and trouble.

If you are the owner or manager of a small company with few cash resources, a good budget can be the difference between financial success and insolvency—or the business’s inability to expand to its full potential. The budgeting ...