ON TREND
On Trend with Budgets by Lisa Gunderson, Bristol Development
Budgeting is like a game of Tetris: You fit all the
with three periods instead of two. Work with HR to
pieces together, but sometimes you have to make
identify when these will hit your financials (not just
some tough choices. Let’s turn that frown upside
occur) so that you plan correctly. Look for what is
down. I know, I know – I can hear the groans…
missing. There is always something that did not make
you have so much to do this summer. This is one
it into round one. Check not just your operational
more thing, and it takes time to do it right. Here is
expenses but taxes, insurance, and debt service. Ask
the good news: You have control over your mindset.
questions about those things if you are not involved
You are the expert in your property. No one knows
in them regularly.
your day-to-day operational needs, challenges, and opportunities better. This is your opportunity to shine.
What am I looking for as an owner’s representative? I am looking for thoughtfulness in making your plan.
You are developing your plan for next year; this is an
Attention to detail – ensuring you did not just copy
estimate and forecast of what you expect to happen.
and paste. I want you to make your case. Why do we
However, life has a funny way of disrupting some of
need to invest in that capital project? Why did you
the best-laid plans. For example, you cannot budget
budget for X to increase by Y? Photos, articles, and
for unexpected pipe breaks or a pandemic. Budgeting
competitive property information go a long way to
can get emotional. The key is to remember this is just
help show an owner the why behind your decisions.
an approximation of next year, and things can and will change.
Finally, find your focus to finish the budget sessions. A quiet place with little distraction is the best way to
Here are some common things that come up during
speed through those reviews. Flip that mindset to
the first round of budget reviews. Are you just
an expert with evidence to work on all those details.
repeating expenses from last year? Take out that
There might be some tough choices in the end, but
one-time event this year that was copied into the
you will have a winning plan.
budget template. Payroll has two months twice a year
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