Beruflich Dokumente
Kultur Dokumente
Jarmila Pencikova
Manager, Accounting
Osler, Hoskin & Harcourt LLP
Fantasy or Reality?
Budgeting
*
*
*
*
*
*
Analysis
Terminology
Operating Budget
Capital Budget
Budgeting for Projects
Reporting
Osler, Hoskin & Harcourt LLP
IT Spending Analysis
-
2002
2001
2000
1999
1998
1997
1996
in $'000
Actuals
Budget
Actuals
Actuals
Actuals
Actuals
Actuals
Actuals
Operating Expenditures:
Salaries and Related
Outside Consulting and Related
Telecom
Other Expenses
Software Depreciation, Licences & Maintenance
Hardware Depreciation, Leases & Maintenance
Outside Consulting Related to Capital Projects
TOTAL OPERATING EXPENDITURES
$
$
$
$
$
$
$
$
6,100
680
2,170
1,740
3,900
7,950
1,650
24,190
$
$
$
$
$
$
$
$
1,300
90
350
420
1,100
1,250
250
4,760
$
$
$
$
$
$
$
$
1,200
80
300
400
1,000
1,200
400
4,580
$
$
$
$
$
$
$
$
1,100
120
290
350
1,000
1,300
160
4,320
$ 1,100
$
270
$
350
$
320
$
650
$ 1,350
$
300
$ 4,340
$ 1,000
$
100
$
350
$
270
$
500
$ 1,400
$
380
$ 4,000
$
900
$
100
$
420
$
200
$
350
$ 1,500
$
360
$ 3,830
$
800
$
10
$
460
$
200
$
400
$ 1,200
$
50
$ 3,120
CAPITAL EXPENDITURES
Hardware
Software
TOTAL CAPITAL EXPENDITURES
$ 2,565
$ 1,170
$ 3,735
$
$
$
650
150
800
$
$
$
600
250
850
$
$
$
380
230
610
$
$
$
$
$
$
$
$
$
$
$
$
TOTAL EXPENDITURES
$ 27,925
5,560
5,430
4,930
Statistical Ratios
Expenditures per partner
Expenditures per lawyer
Expenditures per tim ekeeper
Expenditures per staff mem ber
Expenditures to Revenue
$
$
$
$
$
$
$
$
262
150
118
50
5.0%
106.7
186.7
236.7
555.0
$ 93,333
46
27
22
9
4.6%
120
205
255
625
$ 120,000
$
$
$
$
47
27
22
9
4.9%
115
200
250
600
$ 110,000
$
$
$
$
45
26
21
9
4.9%
110
190
240
575
$ 100,000
160
270
430
300
200
500
225
170
395
900
50
950
$ 4,770
$ 4,500
$ 4,225
$ 4,070
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
43
25
20
8
5.0%
110
190
240
575
$ 95,000
43
24
19
8
5.0%
105
185
235
550
$ 90,000
42
23
18
8
5.0%
100
180
230
530
$ 85,000
41
23
18
8
5.1%
100
175
225
500
$ 80,000
Capital vs Expense
Capital Expenditures/Assets
are the tangible or intangible properties that meet
certain criteria.
Tangible properties: land, building, equipment
Intangible properties: software
Osler, Hoskin & Harcourt LLP
Capital Expenditures/Assets
Criteria
- held for use in the provision of services, for
admin purposes, etc.
- acquired to be used on a continuing basis
- not intended for sale in the ordinary course
of operations
- have a value and useful life (normally more
than 1 year)
Osler, Hoskin & Harcourt LLP
Capital Expenditures/Assets
Categories
- Hardware
- Software
- Equipment
- Furniture
- Leaseholds Improvements
- etc.
Osler, Hoskin & Harcourt LLP
Prepaid Expenses
Expenses over a certain limit (set by the
Firm) that cover period of more than 1
month are usually expensed over the period
they cover.
Examples:
Equipment Maintenance
Software Maintenance& Licenses
Insurance
Osler, Hoskin & Harcourt LLP
Budget
Summary of the expected financial
consequences of the organization/units
short-term operating activities.
Focus on 2 types of Budgets:
- Operating
- Capital
Osler, Hoskin & Harcourt LLP
Operating Budget
Find out how many people will be hired in
the new year throughout the Firm
Operating Budget
Find out what the Firms business plan is
(expansion, merger plans, office relocation)
Operating Budget
* For known expenses (amount & timing),
budget the amount in appropriate month.
* For general expenses budget 1/12 of the
annual amount in each month.
Operating Budget
You can prepare budget based on:
-
Attending a Conference
Conference Attendance
- Registration
- Airfare/Train/Bus
- Meals
- Hotel
- Taxi
- Car Rental
- Other (parking, long distance calls, gas, etc.)
Osler, Hoskin & Harcourt LLP
Attending a Conference
Example: Conference @ end of August
Registration & Airfare
Meals, Hotel & other
May/June
Aug/Sept
Maintenance Contracts
Equipment/Software Maintenance & Licenses
Annual Contract where cost < Prepaid Limit
- budget full amount in the appropriate
month
Annual Contract where cost > Prepaid Limit
- budget 1/12 of the annual cost for each
month of the year
Osler, Hoskin & Harcourt LLP
Equipment Maintenance
Example: Existing contract @ $60,000/year
for period July 2002 to June 2003.
This cost will go up to $90,000/year
for
period July 2003 to June 2004.
Budget for 2003:
$30,000 for Jan to June 2003 ($5,000/month)
$45,000 for July to Dec 2003 ($7,500/month)
$75,000 total for 2003
Payment in 2003 - $90,000 in July
Osler, Hoskin & Harcourt LLP
Capital Budget
You can prepare budget based on:
-
Asset category
Project
Capital Project
* One or more capital expenditures with or
without related operating expenses.
* Budget is prepared for each Project.
* Each Project will have its own Capital
Project number.
Osler, Hoskin & Harcourt LLP
(Hardware, Software,
Equipment, Furniture)
* Operating
Reporting
* Listing of all Projects
* Statement per Project summarized by
expense category
Project
Name
100
101
102
103
104
105
HR Information System
Audio/Visual Equipment
Online Training
Document Management System
Microsoft Word XP Upgrade
Litigation Support Software
YTD
Actual
YTD
Budget
YTD
Variance
Unspent
Amount
Annual
Budget
$
$
$
$
$
$
180,000
75,000
1,000
395,000
325,000
118,000
$
$
$
$
$
$
200,000
65,000
20,000
400,000
300,000
120,000
$
-$
$
$
-$
$
20,000
10,000
19,000
5,000
25,000
2,000
$
$
$
$
$
$
70,000
25,000
49,000
5,000
175,000
32,000
$
$
$
$
$
$
250,000
100,000
50,000
400,000
500,000
150,000
1,094,000
1,105,000
11,000
356,000
1,450,000
$
$
1,065,000
29,000
$
$
1,080,000
25,000
$
-$
15,000
4,000
$
$
235,000
121,000
$
$
1,300,000
150,000
1,094,000
1,105,000
11,000
356,000
1,450,000
YTD
Actual
YTD
Budget
YTD
Variance
Unspent
Amount
Annual
Budget
Capital Expenditures
Hardware
Software
Equipment
$
$
$
91,000
205,000
18,000
$
$
$
100,000
200,000
20,000
$
-$
$
9,000
5,000
2,000
$
-$
$
9,000
5,000
2,000
$
$
$
100,000
200,000
20,000
314,000
320,000
6,000
6,000
320,000
Operating Expenditures
Consultants
Training Cost
Travel Cost
$
$
$
60,000
15,000
6,000
$
$
$
50,000
20,000
10,000
-$
$
$
10,000
5,000
4,000
-$
$
$
10,000
5,000
4,000
$
$
$
50,000
20,000
10,000
81,000
80,000
-$
1,000
-$
1,000
80,000
395,000
400,000
5,000
5,000
400,000
Contact Information
Jarmila Pencikova
Manager, Accounting
jpencikova@osler.com
416.862.5891
Osler, Hoskin & Harcourt LLP
First Canadian Place, P.O. Box 50
Toronto, Ontario M5X 1B8 Canada
Questions