Budgeting and Financial Management
in Golf Course Operations
A budget is a presentation of a projected operating plan expressed in financial terms. Budgets can be developed for any period of time; however, most operating budgets cover a twelve-month period, while capital-equipment and project budgets typically cover longer (or sometimes shorter) periods. This lesson will deal specifically with the development and subsequent uses of an operating budget covering a full calendar year.
There are three essential things needed for developing a budget. The first is a clear understanding of the goals of an operation and the requirements for achieving those goals. The second is a working knowledge of the accounting system with which the budget must conform. And the third is a carefully developed set of assumptions upon which the budget is constructed.