5-2-4. Effective budgets

Some guidelines for effective budgets

  1. A schedule indicating expenditures and revenues on a time line
  2. Use quantitative measurable units e.g., dollars , person hours
  3. Divide budget into Long, Mid, and Short ranges
  4. Define milestones in budget; tie to achievement of measurable goals
  5. Use budget as a baseline for monitoring & control
  6. Breakdown budget by organizational units responsible for execution
  7. Define target budget at completion as total costs plus management reserves plus undistributed monies
  8. Reference specific standards used in budgeting e.g. when will costs be expended?