Budget Interview

  1. How do you create a monthly budget and how do you decide how much to allot for something?

I create a budget on previous sales within that month to predict the current month expenses for any given product or service provided. Any excess revenue is placed into a saving fund for unpredicted expenses or short comings within the company.

 

  1. When you create a budget how do you stick to it?

Making specific budget allotments for each category within the business such as payroll, products, maintenance (building, cleaning supplies, office supplies ect.). When there is a need for going over budget such as employees going in overtime, increased expenses in general excess expenses are pulled from the savings fund for such expenses.

 

  1. When you overspend on your monthly budget how do you go about fixing this?

            In terms of staffing, utilizing previous years staffing needs we staff to prevent overtime by ensuring that there is no need for specific employees to go into overtime. Some times overspending is required but this is taken into account for next years or month budget and budgeting in the future may require cuts in certain areas.

 

  1. What different categories are included in your budget.

Staffing, maintenance/supplies, products

 

  1. Do you do monthly budgets, yearly budgets, budgets that extend beyond those time lines, or all the above?

A little of each, the company goes year to year to get a trend of sales throughout the year and what we may expect. Then we go from month to month based off of sales, holidays, and any other events that may require additional staffing or expenses.

 

  1. Do you utilize software to make and customize your budget? If so, what software do you use?

For the software that I utilize we use excel to help customize our budgeting needs.

 

  1. When creating a budget what your process of approval?

Our process of approval depends on the extent of the needs, for example if we need more staffing a few people will be involved. Outer department managers make the call if extra staff is needed however they are given an allotment of hours for each week which needs to be maintained. If they need to go over the hours allotted then there needs to be higher management such as my self.

 

  1. Budgeting helps a company track where a company is investing to increase profits or cut unnecessary spending. When creating a budget are you looking for expected or projected returns from the allocated budget?

 

Projected returns from an allotted budget is what is expected. We provide a service and that service doesn’t guarantee a profit. We can however track trends within the company to predict a projected profit for the given month.

 

 

 

 

  1. At what point will you not fund a project/employee due to loss in profits? (specific percentage or trending loss?)

 

The point we stop funding a project or employee due to loss in profits is more along the lines of a trending loss. There are bad days/months/years but doesn’t necessarily mean the project or employee is not effective but may be other outlying factors that affect the loss. However each scenario is different and needs to be looked at individually to make the call.

 

  1. What are your priorities when creating your budget? 

When creating my budget is to be profitable as a business so that we can keep our doors open to the services we provide. We try and create a realistic goal to maintain our budget to profit ratio. The goal is to build the business up and expand to communities in need of our services as a corporation.

 

  1. When creating a projected budget, are you utilizing last years budget to income as a reference? And if you do what other factors do you consider that would influence budget to income? (ie holidays or events)

Yes, we utilize last years budget as stated before, and holidays are always considered as the line of business we provide caters toward holidays or events. And each of these holidays/events are taken into consideration utilizing last years holidays/events budget.

 

  1. If you have budgeted appropriately, and there is a surplus at the end of a year, what do you do with the extra income? 

The extra income is saved into a high yield business savings account which will help fund future budgeting needs, projects, or expansion within the business.

 

  1. How do you help your employees work through potential challenges that may arise from budgeting cuts?

We try to keep our employees in the loop of our budgeting cuts or needs. This is done through transparency throughout our team by providing profitable or nonprofitable weeks/months/year. This helps the employees understand the company needs.

 

  1. Who all has an input into the allocation of the budget?

This depends on level of which the needs are. If it is simple supplies then we have a designated employee that maintains the budget for supplies. Each department manager makes the call when extra staff is needed within a given percentage over allotted budget, then upper management is consulted.

Retail Store Manager

During my interview I learned that there are many different factors that go into account when creating a budget and as a business grows, they create their own data to give reference to future budgeting needs. This is important  to track as it can be easy to let the cost of the business make it non-profitable. It is also important to look at other outliers that may affect a given project/employee from being profitable and not jump to conclusions by not funding a project/employee. Each budgeting cost needs to be considered as it will add up quickly by the end of the week/month/year to ensure the projected income will be greater than the projected budget.

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