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Budgeting Success

Todd Falcone

Budgeting is a critical factor in every business, as this allows organizations to plan and meet their goals. Although all organizations benefit from proper budgets, those with limited or fixed funding typically rely most heavily on budgets. Educational institutions face particular challenges, many of which can be remedied by proper budgeting.

Determining the Income

Unlike for-profit businesses that sell a product or a service to make money, most educational institutions rely on fixed income from taxes and/or student tuition. There are other sources of income such as donors, interest income from endowments, and various forms of sponsorships, but many of these things could change drastically from year to year. This means that revenue is limited and often puts a constraint on spending.

Identifying Projects

Schools have many fixed expenses such as salaries, building costs, and standard supplies. However, each year schools also set new objectives and plans, which typically require funding.
One of the best ways to ensure that programs are implemented in an educational institution is to properly allocate funds in a budget. Budgets help to identify what programs are possible and what actions can realistically be taken in a given year.

Facilitating a Systematic Plan

Budgets are also a way to instill con¬fidence. The community, parents, and students who are invested in the school want to know where the money is being used and ensure that there is a plan in place. Identifying projects, setting a bud¬get, and adhering to the budget will help to achieve educational objectives while maintaining a good relationship with the school's leadership and general management.

If you have questions about budgeting or ways to help your educational institution run more smoothly, please give me a call.