Budgeting
Constructing and using a budget can be an intimidating task,
however, it is easy to do if you plan ahead and ask the right
questions. A budget can help a group by:
- Refining goals that match with realistic financial
resources
- Encouraging members to use funds wisely
- Providing information when adjusting or changing a planned
program or activity
- Aiding in decision making
- Being used as a historical document for the future of the
group
Three Things You Need to Know Before Developing a Budget
- A clear understanding of the goals for the group
- A working knowledge of Butler's financial system for student
organizations
- A carefully developed set of assumptions by which the budget is
constructed
Steps When Developing a Budget
- Give yourself a month to research and prepare the budget
- Prepare an outline of the organization's planned activities for
the upcoming year
- Carefully study and investigate costs for funding and
supplies
- Determine available funds, such as the balance from last year,
left over money, etc.
- Estimate expected income and when it will be available, such as
money from dues, t-shirt sales, etc.
- Define your expenses, such as advertising, rentals, copies,
postage, supplies, etc.
- Rank order expenses by their importance and which activities
are the smartest to spend money on
- Be flexible in revising your budget-some things may be
overlooked in this planning process and will have to be changed
throughout the year
- Vote as a group to approve the budget
Managing Your Budget
- When your budget has been approved and adopted, it should be
closely managed throughout the entire year
- Create policies and procedures needed to help the budget meet
the goals of the organization
- Keep an up-to-date and accurate log of all expenses and any
income received
- Control your costs by only allowing money to be spent on things
that will better the organization
- Assess your budget during the year to be sure it is working for
the organization's needs