jeudi 31 juillet 2014

Any Tips for Managing Budget in Accrual System?

Hello,



In our company the various departments have fixed budgets that the department manager works within for buying supplies, tools, etc. I manage the machine shop. For my department I purchase tools, tooling, abrasives, and other items.



We use accrual basis for accounting against this budget. As I understand it this means that purchases are reconciled against my budget as invoices are received. It doesn't matter what my Purchase Orders total for a given month, only what is billed from vendors. My vendors bill when they ship the items. Some items ship same day and others may not ship for weeks. Unfortunately, I don't see real time what invoices have been received against my budget and don't have a good idea when some will be received. I get a weekly budget performance ( a list of accrued item costs ) to help me manage my purchases, but I struggle to keep tabs on when invoices are going to hit. It becomes a high wire balancing act trying to guess how much I have left in my budget when I can't see when things clear. I don't get a budget report the last week of the month because the monthly budget meeting will be the first week of the next month and I receive my monthly budget performance report. Unfortunately, the last week quickly becomes the most critical when I try to anticipate where I am.



Does anyone have any tips for keeping tabs on my budget expenses with limited visibility as to what expenses have accrued?



Thanks...




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