Basic Organizational Planning

One of the tasks you face as a financial officer is that of preparing a budget. A budget is a tool used for planning and controlling your financial resources. It is a guideline for your future plan of action.

What A Budget Accomplishes

• It helps to refine goals
• It compels members to use funds efficiently
• It provides accurate information to analyze, adjust and evaluate programs and activities
• It aids in decision making
• It provides a historical reference to be used for future planning

Pre-Budget Considerations

• What is the time period (one year, one semester)?
• What does your group most want to accomplish?
• How will you accomplish this?
• How much will it cost?
• Where is the money coming from?

Preparing Your Budget

• Prepare an outline of your planned future activities
• Determine and record available funds
• Estimate expected income
• Define needed expenses
• Review, revise and assemble into a final budget
• Have members vote for budget approval

Managing the Budget

• Formulate general policies and procedures needed to achieve objectives
• Create internal control (approval prior to expenditures)
• Keep an accurate written log of financial transactions
• Periodically compare the budget to your actual logged expenditures