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Developing job budgets

11:32am Apr 18, 2003 PST

Developing Job Budgets

I am trying to streamline our job budgeting process. Can you forward to me how your shops develop budgets specifically in terms of who is assigned to the task of developing a budget. For example do you have account executives develop the job budgets or accounting personnel develop the budgets or a combination of various departments?

Thank you,

Michael Thomas
Controller
FUSE Inc.

It's a group effort here - Client, AE & Production

Christine Wardwell

We have the account executive develop the budget and key it in as an estimate in C&P. We have templates set up for each job type; some AEs use them, some don't. The key for accounting, though, is to have the estimates entered in C&P in order to track costs as well as bill.

-- Cathy J. Smith
Controller
Young Isaac, Inc.

Our production manager will prepare an estimate for jobs. He will gather time estimates from the various departments and he will pull together the outside cost estimates. If you don't have a production manager then an AE can gather the time estimates.

Bill Scarpa

We're a new, small shop and the account execs usually develop the job budgets. I'd be interested in the results of your enquiry.

Anne Hardy Richardson
Marlin Advertising & Design

Michael,

Our production manager is primarily responsible for estimating jobs. She receives the job order and specifications from the AE, develops the initial budget and, if necessary, gets creative department manager's concurrence with time or buy-out budget allotted for each creative task.

The budget, with resulting cost to client in the form of an estimate, is forwarded to the AE to review and compare to client's budget. If necessary, confers with client and, if necessary, adjusts scope of project to fit client's budget. Production manager is notified by AE of changes to be made, or of approval as first presented.

Creative could be left out of the process if the production manager is very knowledgeable of how much time each task should take and probable costs of buy-outs. Of course, it helps if the AE is thorough in getting as much detail as possible in the job specifications.

I hope this is helpful to you.

Valerie Sexton
Buzzsaw Advertising & Design

In our office the Production Manager is typically responsible for estimating any jobs that involve the creative department and their related tasks.

Jobs that are account service oriented are estimated by the account executive.

However, if the client has a budget figure in mind the two departments work together to allocate the money as appropriate.

Kay Rangel, Project Manager
The Thompson Agency

The AE is responsible for generally determining the budget based on client needs and what's appropriate for the job, and then a more complete and detailed estimate is developed by the production manager once the nature of the job has been fleshed out.

At Benton Newton, we have established templates, with pre-determined specs, hours and pricing. We have based this on past worked, billed, closed jobs. Each job may possess unique specs and requirements, and we customized the template at that time. But, whatever we determine the hours to be per task, that is the budget. You can set each staff code to not allow overages.

Good luck, you are welcome to call me for further details at 1-800-xxx-xxxx.

Felica Henry Benton
Newton Advertising