Budget

How Do People React in Budgets and Variances

Posted by on May 23, 2009 at 11:10 pm

Now consider the budget and the underlying process. This is one of the most internal controls in any company. The budget, in fact, is your primary financial control. The information that you get from variances can help you save money for the company in very direct and immediate ways. Ignoring variances is like failing to [...]

Determining Reporting Periods

Posted by on May 15, 2009 at 10:42 pm

One point you must address in setting budget variances report¬ing policy is frequency. Should you report monthly variances only, or year to date? The argument in favor of month variance reporting is that you won’t need to repeat explanation from previous periods. This is true. But year-to-date reporting still makes more sense. Under the monthly [...]