Assignemnt:
For this week's paper, you will be using the information from your week 2 memo (IT IS ATTACHED). In week 2, you were asked to explain to your employees what you were looking for in a budget. Now you will need to utilize this information to report to your bosses. Please prepare a budget presentation to give to the executives of the company. Refer to chapters 1 and 2 in Budgeting Basics and Beyond. You are free to skim through the rest of the book as well.
Please be aware, I am not asking you to prepare an actual budget. I would like a PowerPoint presentation describing what you need money for and why. While this is a fictitious report, you need to provide valid justifications for your requests. Chapter 19 provides an example of what a formal report should look like. These types of presentations are often used to project the future success of the company and could be presented to investors and stockholders as well.
Budgeting Memo to Employees
A budget is a significantly important management tool through which many individuals utilize in their management plan. Through it, the management personnel of an organization attains a clearly understood way of managing their money. It thus helps in selecting the most important projects of an organization, which deserve to be funded, and then ensures that the funds are available to fund them. Different organizations utilize different methods and techniques of preparing a budget. The most common method that many organizations use is instructing department managers to provide budget contents of their departments, by explaining clearly the projects that they believe should be funded in their departments using a certain level of prioritizing, in order to ensure that the most important projects are funded with the available funds of the budget (William Patyerson, 2016).
Being the manager of a property management company, I have the obligation of preparing the budget for the whole organization. Since the company has property in a different location, each with different unique needs and projects to be funded, the most appropriate way to create the budget is having property managers of all the properties that the organization manages to provide me with the contents of all the aspects of their property that should be included in the budget. This paper, therefore, provides a clear direction concerning the necessary contents of the budget that I would require these individuals to provide. The first and highly important understanding that property managers should have is how to organize the content of their budget. There are certain projects that can be grouped as long term, which cannot simply be completed within a very short period, and other projects which requires much less funding, and those that can be completed within a short period of time. There are also other components of the budget that the property manager believes are highly important, thus they should be prioritized over another component. Since property managers have a clear understanding of their property in a much better way than I have, they should clarify their contents and organize them in a much clear way that is easy to understand and to prioritize for the management (McWhiter, 2016).
Many organizations are willing to fund most of the projects that they have. For the case of my company, for example, the management would like to fund all the contents that the property managers provide. There is, however, the limitation of the funds that the organization has. When these funds are less than the ways in which they require to be utilized, it is extremely difficult to fund all the operations. It is due to this reason that the ability to prioritize issues and projects become extremely important. Property managers should first understand the extent to which they are formulating their budget. In this case, the budget should be created quarterly for only about four months. Properties like buildings and renting houses have many requirements for maintenance. Due to this reason, therefore, creating a budget for about four months is appropriate for property management organizations.
In their budget, the property managers should first list the properties of first priority, which must be present for maintenance of the property to be maintained. After listing these contents, the managers should then sort them with regard to the amount that each content requires and the time span through which the provision of the budget is required. There are also other contents of the budget, which require less funding but are also highly important. These contents should also be prioritized higher than those that requires much bigger funding. Some projects cannot be completed within a span of four months. These components should be categorized among the long-term components of the budget and should be arranged according to the priority of their importance and the amount that should be assigned to them. An example is when a certain property has components like daily upkeep money and a long-term project of renovating a certain project. In such a case, the property manager should list the necessary daily upkeep money as the first priority followed by the renovation of the building. This is appropriate because the property might not remain well maintained without the daily upkeep money to pay individuals like cleaners. Renovation of a building can, however, wait for some time. A clear arrangement and explanation of such a budget can make it extremely easy for the management to prepare the general organizational budget (Hawkins, 2013).
The proposed budget is due 1 October for approval or adjustments. The presentation will be in the form of a power point showing the quarterly breakdown for the year starting 1 January. Provide explanations of every cost.
References
Hawkins, M. (2013). Example of Property Management Budget: SlideShare. Retrieved from https://www.slideshare.net/MichaelHawkins/example-of-property-management-budget
McWhiter, (2016). Creating A Property Management Budget: McWhirter Realty Partners, LLC. Retrieved from https://www.mcwrealty.com/blog/creating-a-property-management-budget/
William Patyerson, (2016). Contents of a Proposal Budget: William Paterson University. Retrieved from https://www.wpunj.edu/osp/budgets/contents-of-a-proposal-budget.html