The Business of Parking

As we are preparing for the onset of another fall semester at Old Dominion University, we are also fresh into a new budget year, anxiously awaiting to hear the final budget decisions.

Budgets are critical to running a business operation and therefore should be recognized as an on-going function and not simply a once-a-year exercise. Equally important to the budget process is the engagement of the management team in the planning and the continuous maintenance of a budget. A budget serves as an organization’s financial roadmap.

Budgets serve as a foundation for making strategic business decisions. The benefits of implementing a well-defined budget plan include money management by tracking performance; informed decision making; appropriate allocation of funding for operating requirements and capital projects; and problem identification where there may be an inefficiency in the operation.

Creating an effective budget will facilitate strategic business decisions which aid in reaching operational goals.

• Gather and analyze data from current and historical financial statements. Were the projections on target?
• Form objectives and develop strategic goals to provide the framework for planning a budget.
• Meet regularly with cross-functional work areas to ensure all contributing factors are considered when establishing an accurate and effective budget plan.
• Create a preliminary budget; review it; and revise it until you have an effective and fiscally responsible budget that meets pre-determined objectives and strategic goals.

Budget planning is a series of hurdles, each one getting you closer to the finish line. It is important, however, to monitor the operation’s progress as the budget period jumps its financial hurdles. Budget planners and stakeholders should regularly review the current position of the budget to ensure the organization is making the mark. Operating in the black is a fiscally sound practice for crossing the finish line. ◆