budgeting graphic Oak Hill II

Budgeting and Financial Management in Golf Course Operations

Budget essentials

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.

    Once these three criteria have been established, an electronic spreadsheet can be constructed to help work out the details of allocating funds based on the goals you have decided on, the constraints of the the accounting system and a clear set of assumptions.

    But first, let's review these three criteria....


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