Property Management 5
Thereare various thingsthat a manager has to put in mindwhile constructing a budget for an organization or a project. Theprimary function of the manager is to understand and implement theobjectives and for that,manager needsa budgeting plan(DCMR, 2011).Thebudget not only function as the means of resource mobilization butalso plays an important part in economic management(Egbide, Sola, & Francis, 2014).The budget management revolves around certain steps that ensure howorganization will perform in coming months, this helps organizationto set their plans and work accordingly. There are various importantaspectsthat can be lookedat while declaring a budget and some of the questions that arenecessary to answerare as follows.
Themost important thing that an organization must look at is theirprevious track record and how their budget was carried out. Considera possibility that if an organization is small and planning a budgetthen it is better to plan budget quarterly than yearly. The reasonfor this is that small organization are likely to face problems inbetween so taking smaller steps or budgeting quarterly will be a goodapproach to take, but if am a manager of a larger organization thenyearly budgeting will be a good approach to take.
Thesecond and the most important question that comes to mind is that,what are the assets of budgets that I would like to be carried out inmy budgeting scheme?There are various important and miscellaneous expenses that I wouldlike to add andsome of them are as follows.
Thefirst most important part of designing budgeting scheme is that howmuch revenue that particular project will generate. This will helpintegrate further budgeting policies into overall expenses(greenefficient, 2014).This process can be done by looking at below mentioned budgetingsteps.
Thesecond most important budgeting factor that I would like to add isthe operational income including taxes and relevant insurancepayments. This will help clarify things to take further decision onthe budget.
Miscellaneousplays important part in designating a full budget so keeping thepoint in mind that there will be miscellaneous orsmall expenses that can come,these expenses can be towards the employee or the construction.
Theproperty that is going to be constructed will be paid via mortgage ordirect payment? This question depend on the size of organization soit plays an important part in defining a full fledge budget.
Thefifth part will be to potential reimbursement and credit losses thatcan come during the process. This will help ensure that howorganization is going to get from overall project. Combining abovefactorstogether with these, manager can identify what will be the grossincome of the project.
Thefinal part of the budget assessment will be to get reports on thebudget.The reports will bein Excelspreadsheet fileformat including monthly expenses of the particular investment. Thiswill help track record of where the overall budget is going and ifthe budget is going according to the plan then it will be better tocarry out in a similar manner but if the budget within two months goout of hand then I will look at miscellaneous which are mostlyunpredicted so cutting cost will be an option on the miscellaneous.
Theseare some of the budgeting information that I would like to add in mybudget scheme for a complete property budget.
DCMR.(2011). Studyguide for property managers examination.Department of consumer and regulatory affairs, District of Columbia.
Egbide,B.-C., Sola, A. K., & Francis, I. (2014). The Impact of BudgetReforms on the Quality of Budget Management in Nigeria. Journalof Accounting and Auditing: Research & Practice, 2014.
greenefficient.(2014, jan 13).http://www.greenefficient.com/10-steps-to-prepare-a-commercial-office-facility-budget/.Retrieved from greenefficient:http://www.greenefficient.com/10-steps-to-prepare-a-commercial-office-facility-budget/