Tag Archive
Variance Reporting Of Budgeting
When you consider that budgeting is nothing more than the best possible informed guess about the future, you have to expect some variance to arise. It’s inevitable. But it is not a sign of failure. The variance itself is not the problem. Variances can be positives if used correctly-to discover and reverse unfavorable trends. When [...]
How Do People React in Budgets and Variances
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
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 [...]
