Question

A budget is a plan by an individual or company for spending it resources which is based on experience and future expectation of the project or business (Hilton, 2016). There are various types of budget like cash budget, performance budget, sales budget, production budgets, planning budgets, capital budgets etc. I work in multifamily property management and we use a Participative budgeting. With multifamily properties there are different costs that are associated, and the participative budgeting allows employees in the company to be involved in the budgetary process. Based upon the prior year’s expenses, assumptions and predictions are made for the company. Our budgets involve Cap Ex, such as concrete repairs, foundation repairs, painting of buildings. Our budget meeting started about 4 months prior to the end of the year and was completed with owners, partners, and managers of different multi-family properties. The budgets are used to set guidelines and measures for the property and upcoming expenses. In addition to the Capex budget, operations are included such as the day to day expenses as well. The budget meeting lets us compare data based on the actual budget figure, and better assess how are resources are being used and if they are being used correctly. We look at the goals we have set from the prior year and we set financial and non-monetary goals. Overall, it helps us all look at where we want to see the business grow in the next year and overall assess the business. Thoughts?

Answer 1

A budget is a Estimation  by an individual or company for spending it resources which is based on experience and future expectation of the project or business (Hilton, 2016). There are various types of budget like cash budget, performance budget, sales budget, production budgets, planning budgets, capital budgets etc. I work in multifamily property management and we use a Participative budgeting wherein people decide the allocation. With multifamily properties there are different costs that are associated, and the participative budgeting allows employees in the company to be involved in the budgetary process. Based upon the prior year’s expenses, assumptions and predictions are made for the company. Our budgets involve Cap Expenditure, such as concrete repairs, foundation repairs, painting of buildings.

Our budget meeting started about 4 months prior to the end of the year and was completed with owners, partners, and managers of different multi-family properties. The budgets are used to set guidelines and measures for the property and upcoming expenses. In addition to the Capex budget, operations are included such as the day to day expenses as well.

The budget meeting lets us compare data based on the actual budget figure, and better assess how are resources are being used and if they are being used correctly. We look at the goals we have set from the prior year and we set financial and non-monetary goals. Overall, it helps us all look at where we want to see the business grow in the next year and overall assess the business.