Do I need to really look that close at the budget? Do I need training in accounting and management? We make enough.
For most department managers in business, there is a set budget of money they can use in their department. The budget is used for various items like hiring staff, events, and upgrades to the department just to name a few. Most get promoted within, but are not properly taught how to deal with a budget. Remember accounting is the language of business.
Most managers are hired from within and from lower positions. At clinics nurses may become clinic managers and it’s a great fit, the nurse managing a clinic, it fits!!!. All my nurses, how much business management did you learn in college or nursing school? Which accounting classes did you take in nursing school? Most nurses may say “I’ve never taken a business class in my life” and that’s ok, but you want this person to be in charge, upon other things, a budget without knowing how to read it? Is this manager going to know when to cut cost and bring the business into a net profit?
Most managers look at the inflow, but not the outflow. The outflow tells you where your money is going. A business could be a cash machine, but if the money is going out as fast as going in the business is making nothing or worse at a negative. Managers must understand this and get control over their budgets because there paychecks are reliant of that budget.
It is my opinion that businesses should have a tuition assistance (not a whole degree) on management and accounting classes. It is money out of their pocket, but in the long-run, it will pay to have a business competent manager.
www.accountingshit.com has many resources for accounting including books that can be purchased and free videos.