AUDIT

BUDGETING AND EXPENSE CONTROL

  1. Are the expenditures of your firm based on allocations established by a budgeting system?

  1. Are your budgets tied to set time periods, performance standards, and incentives?

  1. Do you require a budget proposal with any proposal for future business operations?

  1. Are budgets used to control the amount and rate of expenditures?

  1. Do your budgets provide a record for improved performance?

  1. When you set your budgets, do you discuss them with key employees?

  1. Have you analyzed the costs of your business that are fixed for a period, such as rent and salaries of clerical and supervisory personnel?

  1. Have you attempted to construct a break-even model for your business?

  1. Have you compared your cost, revenue, and profit figures against industry data from your trade association?

  1.   At the end of each accounting period, do you review your actual operations and your forecast together?

Source: U.S. Small Business Administration, Management Audit for Small Service Firms, Small Business Management Series No. 38, Washington, D.C., 1979; John B. Kline, U.S. Small Business Administration, Management Audit for Small Manufacturers, Small Business Management Series No. 29, Washington, D.C., 1979, Small Business Administration, Management for Small Retailers, Small Business Management Series No. 31, Washington, D.C., 1979.

CHECKLIST EVALUATION RESOURCES AUDIT FEEDBACK HOUSE
Before You Start:
A Basic Checklist 		Business Plan
Evaluation Scale 		Small Business
and Entrepreneurship
Resources 		Small Business
Management Audit 		Feedback H o m e



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