Feedback On The Budgetary Situation And Corrective Action

When presenting feedback on the budget of your department, it is important to follow these guidelines:

• Make certain that you understand the business budgeting process.
• Read through the guidelines that you need to follow and make sure you understand them.
• In your report make sure you show how the budget is used in the company in terms of timing and duration of the budget.
• Communication is important. While compiling the report it is essential that you keep in close contact with the financial person within your department or the finance department. Remember to ask questions about anything that you do not understand. Ask advice about any assumptions you may be making.
• To report back successfully you need to make sure that you know the real concerns driving the people making the decisions about the budget and address them.
• It is also important that you substantiate budget items in terms of the cost to benefit returns.
• Buy-in from the decision-makers in the company is vital. Spend as much time as you find necessary to inform these people about your department. This will form the groundwork for making any changes at a later stage.
• Know the lines in the budget that you are working on. If you are unsure then make certain you find out. It is important that you know what something means and where any particular number comes from.
• Involve your team. Consult with them continuously throughout the budget process. Remember, the more you plan the better you will be able to respond to questions and unplanned variances.
• Whenever possible compare actual to budget amounts. If there is a major or unexpected variance, it is important you find out why. Notify the finance person as soon as possible.