|
TICK |
Use this list to identify that you
have mastered the tasks of putting a budget together |
|
q |
Include and focus on
all the key indicators you wish to
control. |
|
q |
Focus on controlling items
which will have a significant impact
on the overall business. |
|
q |
Individuals with the
authority to control outcomes
should be given responsibility for their relevant budget items. |
|
q |
Regularly
review budget performance with key individuals. |
|
q |
Regularly review
budget figures to identify cashflow or
other problems |
|
q |
Carry out
sensitivity analysis to see the effect
of different outcomes on performance |
|
q |
Look at how
fixed costs differed from those
budgeted and whether any changes are likely to be ongoing. |
|
q |
Identify variances in
income or expenditure and look at whether the differences are in
timing or performance. |
|
q |
Analyse which variances
in variable costs reflect sales
variances, or whether prices or efficiency have changed. |
|
q |
Don't confuse changes in timing with changes
in levels of income or expenditure over time. |
|
q |
Take
action to sort out and improve performance which can be
controlled. |
|
q |
Capitalise on unexpected changes. Don't ignore
favourable variances without identifying why they have occurred. |
|
q |
As figures become available,
compare actual figures to budget figures and identify why these
have occurred. |
|
q |
Compare margins,
working capital and other factors with historical figures to identify
how performance is likely to improve or deteriorate. |
|
q |
Revise budgets in the light of the information you now have,
they should be a working model. |
