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Who should be the people required to do a budget in a small business company. Every Department Manager?

Hi Nelly, thanks for your question! I would think, in the best case scenario, department heads would submit their individual budgets, revenue and cost estimates, or at least requests, in concert with an overall plan. It depends somewhat too on the leadership of a small company as to how much department managers contribute. In some cases, there is some flexibility, but in others, a department head may be handed a budget, based on historical data and/or trends, in which to then operate. The more managers that are part of the budget creation, the more the budget can be used as a plan and a tool for cost control.

Jay Hollowell

I beleive that only keys postion managers like admission,human ressourses and fincance should submit their department budgets ,the other departments for me should only submit requests in order to avoid being overwelmed by too many ideas to be incorporated in the final budget. Combining keys dept budgets ,all the dept requests and the goals set by the senior management of the company should be able to provide a very solid tool for management.

Although budgetary responsibilities can be assigned to managers according to their locus of control, effective budget development should include input from as many sources as necessary to develop a clear and accurate picture of operations. Budget transparency not only endows participants with a sense of ownership as the budget term begins, it also provides each with an idea of how their individual activities contribute toward overall business objectives.

I could not agree more with the reply posted by Thomas. In constructing a complete budget many questions arise as to individual needs for specific locations or departments. It's important to gain the perspective of as many managers and non-managers as needed. Additionally, the partipation aspect will help all those managers involved hold themselves accountable to individual outcomes.

I say every manager on each department has to make a budget then we have to put together in order to relevance according with the company activities, besides all of the managers has to be in communication to get the better results in our master budget.

Yes, I believe in order to have the most effective budget and essential tool for cost control, head individuals from every department should weigh in. Incorporating the budget from every aspect of a company can catch loose ends for the head of the company to consider. For a small company, there is more flexibility for individuals to contribute.

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