Budgeting

by John Kind

Initial detailed budget

Based on the ideas emerging from your brainstorming sessions, you can now prepare a detailed, initial budget, as follows:

Initial budget for next year

 
£000s
Team members’ salaries after the health care saving of £3,000 (£239,200 less £3,000)
236.2
‘Space’ costs after additional ‘hot desking’ from
1 July (£36,400 less 15% of £18,200)
33.7
Systems development (£102,400 less 10%)
92.2
Staff training/recruitment
7.3
Travel and entertainment
10.0
TOTAL
379.4

This initial budget will be your first, formal budget proposal for next year. At this stage, too, you may have to ‘calendarise’ the budget. That is, you now break it down into shorter budget periods so that, for example, you will have budgeted figures for calendar months or four-weekly periods.