All chapters
Chapter 11
Owning a Budget You Didn't Build
I inherited someone else's budget. It was wrong before I arrived.
18 min read
This is real
"Tom is $67,000 over budget on headcount. His predecessor budgeted for 6 staff. He has 7. He's owning a variance he didn't create."
— Tom, Head of Operations
Key concepts
Concept 1
30-day budget audit
Pull 6 months of actuals. Compare to budget. Find the gaps before they become your variances.
Concept 2
Reforecasting
If the inherited budget is wrong, reforecast in week three. After that, you own it.
Concept 3
5 lines to watch
Headcount, contractors, software, marketing, allocations. Most inherited problems live here.
Flashcard deck
Tap a card to flip.
Knowledge check
Q1
When should a new manager audit their budget?
Q2
Which line is most likely to hide an inherited problem?
Q3
An allocated cost is:
Red flag alert
First 30 days in a new role — audit the budget before you own the variances.
Questions to ask your finance team
- 1.Can I get six months of actuals for my cost centre, line by line?
- 2.What is the process for requesting a budget reforecast?
- 3.Are there costs allocated to my budget that I'm not directly controlling?