There are some common budgeting blunders that plague many companies, and these blunders are often associated with well-meaning individuals who unintentionally bring some bad budgeting practices to the table.
Let me introduce you to Calculator Cindy, Sneaky Smith, and Sandbagging Sally.
Calculator Cindy: Calculator Cindy appears to be really organized when she comes to the budget meeting. She has her line numbers memorized. She knows each account and the amount spent from that account thus far this budget year.
But when questioned about her budgeting numbers, it is discovered that she simply takes the current spending and annualizes that for the year. What’s wrong with that?
How can you avoid this budgeting blunder?