Step 1: Selecting Budgeting Principles
At the first stage of planning expenses for management costs, it is necessary to determine the detailing of this planning. The following points should be analyzed (cut into sections):
financial responsibility centers (FRC), which will be different for companies with different organizational structures;
existing expense items (according to the current cost classifier);
months of accrual (taking into account the frequency of expenses);
months of payments (based on the frequency of payments);
OPEX-CAPEX (so-called operating or capitalized expenses);
regularity or irregularity of expenses;
expenses for specific projects, i.e. whether these will be irregular operating expenses or capitalized (if additional detailing is not required, then this section can be omitted);
different versions chinese student data package of the budget (based on the Central Federal District and others);
planning deadlines;
principles of budget allocation (indicating the reference books used and the planning rules applied);
budget formats;
potential risks and benefits of the types of irregular costs adopted;
reasons for possible deviations from planned indicators (factor analysis);
available reserves available for cost optimization.
Download a free selection of tools for calculating KPIs and increasing marketing metrics
Alexander Kuleshov
Alexander Kuleshov
General Director of Sales Generator LLC
Read more posts on my personal blog:
Over the past 7 years, we have conducted over 23,000 comprehensive website audits and I have learned that all of us as leaders need clear and working algorithms for our marketing and sales.
Today we will share with you 6 of the most valuable documents that we have developed for our clients.
Download for free and implement today:
Step-by-step guide to creating marketing KPIs
Template for calculating KPIs for a marketer
9 Examples of Universal Selling Commercial Proposals
Upgrade your CPs to close more deals
How to make KPI for the sales department so that profits grow by 20% or more?
Step-by-step template for calculating KPIs for OP managers
Checklist of 12 main indicators for website promotion
Find out what metrics are needed to properly optimize your website
40 Services for Working with Blog Content
We have collected the best services for working with content
How to define your target audience without mistakes?
A proven guide to defining a company's target audience
Download the collection for free
pdf 8.3 mb
doc 3.4 mb
Already downloaded
153324
This detailing is recommended for use when planning management expenses. It will help the financial director see where exactly and how quickly money is spent, how consistently the budget is spent, how the indicators of the previous and current year are related.
An important indicator in the financial performance report is the systematicity of management expenses, which must be analyzed if you are interested in reducing them. For example, funds spent on due diligence (a procedure for objectively assessing an investment object) are rather considered irregular expenses. As for regular expenses, it is advisable to make them limited (based, for example, on the size of the rented premises, the number of employees, etc.).
You can use the indicators for past years as a starting point. Irregular expenses should be added up for all the CFOs, for specific projects, and, having set priorities (from the most important expenses to the least significant ones), distribute the amounts of money.