Budget vs Actual Variance Analysis Template

What is a Budget vs Actual Variance Analysis Template?

Managing budget vs actual spending is a key element of running a business. With revenue, costs and operating expenses, monitoring spending against budget helps forecast performance against your business goals.

The purpose of the variance analysis template is to measure actual spend against the budget you set. It shows how your finances compare to your predicted figures and provides an easy way to understand business expenditures. With an overall performance indicator for the year, the budget vs actual template provides you with complete control over your finances. Based on your figures, the analysis is in British pounds and includes a variance percentage.

It will provide valuable insights about your business to help you plan more precisely. It will enable you to establish what product lines or services performed positively/negatively, which expenses were higher/lower and what variances could affect business performance. For example: If you spent x on advertising but your actual spend was twice this, what was the impact on your business? The budget vs actual variance template will show how your finances compare to your predicted figures and make measuring business performance easier.

Use this template to include:

• Your revenue (a breakdown of your sales figures)
• Costs of goods sold (from raw materials, direct labour, and overhead costs)
• Operating expenses (e.g., insurance, repairs, travel, wages, advertising)

What will the benefits be if you complete this analysis?

• Gives you better control over your business finances

• Enables you to make sensible, realistic decisions for your business

• Provides a visual reflection for your business performance over the period in review

• Clearly indicates how you could change specific components to more accurately forecast for the future.

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About Fleximize

Fleximize is a multi-award-winning digital business lender dedicated to providing UK SMEs with flexible finance, done correctly. Since launching in 2014, we’ve supported thousands of small businesses with over £350 million in funding.

As well as funding the underserved, we’re on a mission to drive transparency and demystify commercial finance. Business funding is improving, and we’re proud to be part of the revolution.

Disclaimer

Fleximize does not provide accounting, tax, business, or legal advice. This template has been provided for information purposes only. You should consult your professional advisors for advice directly about your business.