![]() ![]() Simply draw a single box between the income boxes and spending boxes and mark it as your general budget. If your company collects all income into a general account first and then budgets all spending from that account, then you can skip this step. You may want to use different-colored markers for this to help avoid a confusing mess of lines. The key here is to see how your company spends money and how much it spends.Ĭonnect each income box at the top of the page to any spending authority box that draws its budget from that source of income. Double-check the accuracy of all figures, and do not overlook any expense. Add them all up and write the total next to the spending authority box. Next to each box, list the amount spent in the most recent accounting period. For instance, under the facilities management box, list separate boxes for utilities, repairs and groundskeeping. Under each spending authority box, draw smaller boxes identifying specific areas of expenditure. Again, make sure you do not overlook anything. The key point is to identify all the different ways in which your company is structured to spend money. If you have no other employees, but you wear different “hats” when you spend company money-such as a secretary’s hat and a facilities manager’s hat-then draw boxes for each of the hats. In smaller businesses each “department” may consist of only a single person-for instance, the person who buys office supplies, the person who prepares your finances and the person who manages your facilities and offices. In larger businesses these consist of departments or divisions, usually headed by a vice president who must authorize expenditures. Draw boxes in the middle of the page for each segment of the company that has spending authority.
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