Budget
TO: Staff
FROM: Management
DATE: 20 March 2016
SUBJECT: Budget Preparation
A budget refers to an estimate of revenues, cost, and resources that are done over a period that is specified. The budget acts as a plan of action that is used by any business in the implementation of its set of financial goals and the objectives. This purpose of this memo is to show the projected costs of managing the office buildings of the project management company that are likely to be incurred in the coming. The projected cost figures are very essential in planning and coping with unforeseen circumstances.
Format
The staff preparing the budget should submit it in the form of a PowerPoint presentation. The PowerPoint is very useful in the presentation programs as it helps individuals to portray information in the slide-based format. The staff should make sure that they make 20 slides on the preparation of a good budget that will be used to show the projected amount of money that will be used in managing the company in the next year. There should also be detailed speaker notes which range from 120-150 words. The presentation should also be made appealing by employing the use of graphs, graphics and also pie charts where necessary. The font used should also be big enough such that it is readable from a distance of about 18 meters away.
Date
The PowerPoint slides presentation once completed should be submitted to my office on or before Thursday 24th of March 2016. All the parties involved must ensure that they have completed and submitted the presentation before 10:00am on that day.
Information
The information concerning the budgets should be broken down annually. The presentation should express the costs annually to take into account the administrative costs, property taxes, utilities, insurance expenses, contract services, cleaning expenses and also the repair and maintenance costs that are likely to be incurred the whole year. Annual projection of the costs will help the company to prepare for handling the unforeseen events.
Cost
To ensure accountability and transparency, every cost that is made use of in the composition of the financial projections should be explained briefly irrespective of the amount that it will account for in the budget.
Types of Cost and Income
One of the types of costs that should be put into account when preparing the budget for the company is the fixed cost. This refers to the costs that do not vary with the changes in the output produced. Examples of the fixed costs that should be included I the budget is the legal bills and the insurance cover. The other cost that should be considered is the variable costs. This type of cost depends on the output that is produced. In the preparation of the budget, the staff members should consider the amount of revenue received from the renting of the different office room. By income, the type of income that I would like the managers to consider when formulating the budget for the property management company is the passive income. This entails the money that is earned as a result of purchasing an asset. In this case, the manages should take into account the amount of profit earned by the company as a result of purchasing the office rooms and renting them out for more money than the cost incurred in the payment of the mortgages and other expenses.
Conclusion
By focusing on the outlined information concerning the details of the information required, the period that the budget is supposed to cover and the various types of costs and income, the managers will be in a position to come up with an effective and reliable budget. All instruction should be followed to the letter and must be delivered within the specified time.
References
Shim, Jae K. & Siegel, Joel G. & Shim, Allison I.. (2012).Budgeting basics and beyond, fourth edition. [Books24x7 version] Available from http://common.books24x7.com.ezproxy1.apus.edu/toc.aspx?bookid=44987.
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memo.docx
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