www.stma.org June 2015 | SportsTurf 23
UNDERSTANDABLE FOR OTHERS
Have a system that works for you and is
understandable when explanations are
required. I find that spread sheets are basic
and are usually clear to most people, but
don't get too involved in accounting termi-
nology. It is a piece of paper with columns
and rows whether it is a purchased com-
puter based budgeting software program,
a system of your own design such as one
might develop with Excel or similar sys-
tems, or even as simple as a sheet of paper.
Make a budget for the entire year with
columns as "months" and rows as "items,"
which can be delineated as materials or
labor (personnel) costs. This system gives
you a "visual" on "sub-categories" for
allocated costs like equipment amortiza-
tion or operational expenses (materials)
such as gas, parts, repairs etc. These
items (called variable costs) include such
necessities as seed, fertilizer, pest control,
calcined clay, chalk/paint and even water
if fees are allocated into potable and
non-potable, heating, electrical and other
utilities, if metered separately.
There are also fixed costs which hap-
pen whether there is any activity or not at
your facility. These are items like insur-
ance, taxes and similar overhead items
including your salary. Labor costs can
also have a variable and fixed component.
This is especially true with larger seasonal
crews versus a "skeleton"/full time staff.
An annual budget has rows for items even
if only used for part of a year.
HOW TO USE IT
Now the useful part of effective budget-
ing. It becomes useful for analysis and
future planning if you record actual
expenses alongside your "educated
guesses." Be diligent to record actual
expenses as they occur. You might even
"breakout" the monthly column into
weekly segments and/or "event" segments.
Each day, record actual site expenses
and revenues as they occur so nothing is
forgotten. This daily activity is helping
you also make necessary adjustments in
cash flow and improves your creditability
as well as efficiency. When you compare
"actual" to your budget you are in effect
creating the start of the next year's budget.
I strongly advise that you make a
daily log/journal to accompany the
budget format. Keep rows as your basic
system, but now columns can be daily,
for the month, and even a weekly period.
This daily activity is helping
you also make necessary
adjustments in cash flow
and improves your
creditability as well as
efficiency.
