"In todays uncertain economy, when every manager is being held accountable for the bottom line, you have to be finance-savvy," said American Management Association President and CEO Edward T. Reilly. "Youve got to know how to justify a request, quantify your contributions to the company and spot profit-drains immediately. No matter how effective your management style or how innovative your ideas, your performance will be measured in dollars and cents." Reilly offers the following advice on how to manage a budget:

·  Your budget is your business plan in dollars and cents. It must reflect everything you contemplate doing. If the numbers dont add up, it may not be a budget problem-you may need to go back and re-examine your business plan.

·  Build in a contingency fund. Allow for the unforeseen. Anything and everything may cost more than you expect. Overtime and last-minute delivery charges have been known to derail many a budget.

·  Document everything. Ideally, get all cost information, and possible alternatives, in writing. Keep careful notes of the assumptions, reasoning and calculations behind your numbers.

·  Know your costs. Dont guesstimate. If you cant get the actual figures, then its better to overestimate expenses and underestimate revenue.

·  Continually monitor spending against budget, ruthlessly. The amount on an expense invoice should never come as a surprise. If expenses are out of line, dont put your head in the sand and hope that things will work out. Take immediate action. Curb spending until you are sure the budget is running smoothly again.

·  Establish checks and balances. Set spending limits for line managers and specific tasks. Require approval or sign-off for all exceptions.

·  Money talk. Dont keep anyone in the dark. Continually communicate with all stakeholders about the status of the budget. Thats the best way to prevent being blind-sided at the eleventh hour.