Budget
Budget management is the planning, tracking and controlling of budget and spend throughout the initiative.
Costs can typically be split into resources (such as the people) and non-resource (such as the conference / licence costs).
Two types of costs need to be considered:
- Forecast cost is an estimate of what we think the activity will cost.
- Actual cost is the real cost which is being spent.
Budget Tracker
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Hints & Tips
- Know how and when the money will be spent over the initiative lifecycle.
- It is useful to consider the costs to deliver the activity as well as have an understanding of the impact to the
recurrent costs. - Update forecasts with actual spend.
- Liaise regularly with your Finance Manager and report regularly to budget owners.
- If you are tracking large amounts of money, it could be beneficial to report in £k.
- Budget management can be complex if the funding is from multiple sources so keep it formal and organised.
- Agree tolerances and contingency with the Sponsor / overseeing body for the initiative.