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Financial Politics. As you prepare the budget, be aware of whether money is tight or reasonably plentiful this year. Sometimes, there is end-of-the-year money that must be spent or lost. Know whether these pockets of money exist and if so, be prepared to capture them.
If you have discretion on when you can make purchases, it is usually wise to make your expenditures early before any retrenchment occurs. Major expenditures can and should be spent as soon as you have the money. Travel and professional development often become targets for reversion if not committed early.
Take your business manager to lunch. Interpreting the various rules and regulations surrounding fiscal transactions can be easier with a friend in court.
Consider alternatives to hiring staff. Many objectives can be accomplished by purchasing outside services or by using temporary staff.
Make or Buy Decisions. Think carefully before deciding to perform a service or create a system that might be purchased. Often (even usually) the specialist provider can do it more economically.
Cross organization lines for support. Consider whether you might join forces with another unit for increased bargaining strength or to make scarce dollars go further.
Advisory Group. An advisory committee or customer support group can provide the means to marshall powerful support. When selecting folks for the group, consider the rising stars in the organization and the opinion leaders.
Scrutinize all charges to your budget. Know what you are being charged for and what the basis of the charge is. Some charges are formulaic, e.g., based on number of square feet or head count. If the basis doesn't seem equitable, question it.
Distinguish between controllable and uncontrollable expenses. These are sometimes called fixed and variable expenses, although there is a difference. Divide your budget into two parts and demonstrate that you are controlling what can be controlled.
Know where the latitude is in your budget. In most organizations, there is flexibility in managing the budget as long as you stay within the bottom line. Sometimes the flexibilty only extends to certain categories of expenditures, know what they are. Know when you need to notify the boss of a deviation and when he/she would consider it major and when he/she would consider it minor.
Speak the language, walk the talk. Learn the terms that the upper level of the organization use when they discuss budgetary matters and use these terms. Do your homewalk and be prepared to demonstrate that you understand what is going on, that you have evaluated all the alternatives, and can justify your budget in terms that are persuasive to the your boss and the bean counters.
