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Warning: Not getting management's approval on your company budget could result in serious financial distress

by , 21 October 2014
You create your company's quarterly budget and, without getting sign off from your management team, you send it out to the team.

Little do you know, but your productions manager is furious about the budget because it puts ridiculous restraints on him.

This could send your company into serious financial devastation.

Don't believe me?

Then read on to find out why you need to get approval from all your managers or face a financial disaster.

 

Here's why your management team must sign off on your company's budget before you make it official

 
Let's say your enraged operations manager decides he's just not going to follow your budget because it's unrealistic. 
 
He simply spends what he thinks he needs to and ends up going over the budget by R200 000.
 
This robs your company of its profit for that quarter and leaves you in a desperate financial situation. 
 
When you confront your manager about it, he simply says they were emergency or necessary purchases he had to make that you hadn't taken into account.
 
That's why you need to get approval from your management team before you implement your company's budget.
 
Here's how to do this.
 
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Here's how to get your management team's approval before implementing a budget

 
Create a draft of the budget you want to propose. Send it out to just your managers and executives. Ask them for their comments and feedback.
 
Then consider their comments and make adjustments accordingly. Send it back to management to get everyone's sign off.
 
Just remember there may still be some people who don't approve of the budget so ask them to come speak to you if they're still not happy. This way you can either justify your budgeting decisions or make a plan to ease their concerns before you implement it.
 
Doing this will ensure none of your management team capsize your budget and leave your company to drown.
 
PS: For more budgeting tips and tricks, check out the Master Budget Series.
 

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