Some companies like to have a different Budget set up for each Division so they can track profitability based on that Division alone rather than the company as a whole. For example, you may want a different Budget for your maintenance division than for your installation, and that is possible with LMN through Divisional Budgets.
To set up Divisional Budgets, you will first need your full company Budget built. You will then follow these steps :
- Make a copy of your company Budget, editing the name to reflect the Division you are creating the Budget for.
- Once in the copied Budget, you will want to clean up each section and delete the irrelevant information - starting with the Sales tab, simply remove the sales income lines that are unrelated to this Division. If you are creating a Maintenance Divisional Budget, then your Construction income will not be relevant sales information for this Budget.
- Repeat the same for each section (Field Labor, Equipment, Materials, Subs)
- For splitting your Overhead, we have created an article to help you consider the Overhead expenses - click here to learn how to split your Overhead for Divisional Budgets.
- Once completed, saved and activated, you have now created a Divisional Budget for that Division - you can then go back to the original Company Budget, make another copy, and follow these instructions again to consider the next Division within your company.