Budget Committee
Categories: Accounting, Company Management
Think of the wildest, craziest, most insane partiers from the cutting room floor of Animal Kingdom. Now think: The Opposite.
That's this group. Kind of like a mini-Department of the Treasury just for your company, this is the group of people who set fiscal policy for an organization, approve/amend prospective budgets, and generally oversee the entirety of the financial operations.
Jimmy recently joined ByTheBooks.com after being a star salesperson at his former firm, ForgivenessOverPermission.org. One of the first things that he noticed about his new shop was the existence of a budget committee to which he had to submit his proposed expenses for client entertainment, travel and meals, etc.
His former employer had no such group, so he was accustomed to spending first and then asking for reimbursement after client events. Now, unless he can either get his old job back or become a leader of the budget committee, he will have to comply with a new set of standards.
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Finance: What is a Budget?43 Views
Finance a la shmoop what is a budget? that's that thing you throw right out [Woman throws budget out the window]
the window just before you start doing all your Christmas shopping
right but generally it's a plan that lets you see where your money will be
spent if you have a personal budget well you'll be able to decide ahead of time [Personal budget example]
how much money you'll spend on clothes, food, megaphones to annoy and anger your
neighbors and you know whatever floats your boat if you own a company well
you'll probably have much more complicated budget for things like
advertising and lawyer fees either way the plan helps you make sure that you
have enough moolah for everything you need and maybe some leftover for stuff
you want.....Joan wants to control her money so she decides to set up a budget for [Joan setting up a budget on a laptop]
next month she makes a thousand bucks from her summer job and well here's what
her budget looks like.....
Now Joan knows exactly where every penny is gonna go she's not [Joan driving a car]
gonna be caught off guard by any surprise expenses she's not gonna spend
$200 on safecracking equipment and then realize she doesn't have enough left [Joan stood beside a vault of gold bars]
to pay her phone bill although if she does get hit with some unexpected
expenses well hopefully yeah she can just pawn some of those exotic vases she
took from the Peterson place [Joan holding a vase]