Communicating Budget Information Number

CommunicatingBudget Information

Number:

CommunicatingBudget Information

Communicationis one of the aspects that define successful management, and asmanager, one is required to communicate with the employees on analmost daily basis, hence effective communication is an essentialelement for the success of any organization. A manager shouldcommunicate budget information to the employees. This helps them toknow what is expected of them when preparing the budget and thereforeavoid mistakes (Faguet,2003).They are able to project the income and expenses of the organizationaccurately and thus help the organization in saving money. As amanager of the private property management company, it is importantto communicate to the employees on how to prepare the budget beforethey actually do it in the following ways.

First,the budget period should cover 1 year so as to help in the long termplanning. However, every department should evaluate their revenuesand expenditures quarterly to make sure that they are in line withthe overall annual budget (&quotBudget Advisory Council – MissouriWestern State University&quot, 2015). Reports should be preparedevery three months on how each of the departments has spent money aswell as the income they have earned and scrutinized by the companyauditors. Each deviation from the annual budget should be adjustedaccordingly during the quarterly evaluation. This is so as to detectdeviations early and institute corrective measures before the yearends. The quarterly budget should be ready for presentation by date 5of the following months, January, April and October of every year.The annual budget is presented on July 5 every year and therefore allthe departmental predictions should be ready by June 20thand forwarded to the central accounting department to be compiled(Faguet,2003).The budget should be in the form of a power point presentation forprojection and also in word for filing.

Thefollowing items should be included in every budget. First, all theexpected revenues and incomes should start. This includes incomesfrom the buildings being managed. The budget should specify thebuilding number together with the income that it brings each month.The income should be given in a cumulative way for each month untilthe end of the year. The income from the sale of shares should alsobe noted in a monthly basis cumulatively for the 3 months and finallyannually. Any other source of income, such as that of investorsshould also be included in the budget the same way.

Theexpenditures of the business should follow after the income. Thisincludes the amount of money used to pay the employees of the companyunder the title administrative fees. The administrative fees includethe amount of money used to pay the different categories of workers.This should be done according to departments. The second expenditureshould be on the amount of taxes that the organization pays. Thisincludes the taxes charged for license renewal, the personal propertytax and the real estate tax. Any other form of tax should also beincluded in the taxes category.

Theother category of expenses includes the utility bills. This includesthe amount of money paid for electricity, fuel, water and disposal ofwaste. Other bills paid should as well be included here as well. Theamount paid for insurance should as per the different type paid. Theamount used for repairs and maintenance should also be included. Thisincludes the expenses on replacement of different materials thatshould be indicated (Faguet,2003).The amount used to pay for casual services such as cleaning, cookingand other contract services should as well be included. Each of theprojected income or expense should be calculated on a monthly basisand recorded cumulatively. This is because some income and expensesare constantly changing. This change should be duly noted per month.The total amount in three months is what should be presented on thesaid dates. However, the employee must clearly show how he/shearrived at that figure.

Inconclusion, for any manger to be effective, he she must be aware ofeffective communication techniques with his/her employees. Withreference to the budgeting, department, this is more about team work,rather than individual work. This in turn explains the key roleplayed by the manager as well as the impact of an effectivecommunication within the budgeting team. It’s clear that, effectivebudgeting would help us to manage our resources better. It would alsopromote accountability. This in turn would lead to higher profitmargins and growth of the company.

References

BudgetAdvisory Council – Missouri Western State University. (n.d.).Retrieved March 19, 2015,

fromhttps://www.missouriwestern.edu/bac/

Faguet,D. (2003). Practicalfinancial management: A guide for today`s manager.Hoboken,

N.J.:Wiley.