Budgeting plays a vital role in understanding and growing your business. But, if you're not comparing your budget to what is actually happening in your business, how will you know what to iterate? Use our template to build a highly powerful budget variance model customized to fit your business.
How to use this model:
- Complete the form to the right to download the financial model in an .xlsx file.
- Input your Budget P&L into the Profit & Loss - Budget Input tab.
- Input your actual P&Linto the Profit & Loss - Actuals Input tab.
- Make sure that the Budget tab, Actuals tab, and two Variance tabs all have the exact same line items; otherwise, the model will not work.
- Evaluate your budget-to-actuals variance by dollar amount and by percentage.
- Compare: budgeted profit and expenses as a percentage of revenue, actual profit and expenses as a percentage of revenue, and how those percentages differ. This is key to determining whether the ratio you budgeted was correct, even if the actuals weren't.
- Rinse and repeat quarterly, or even better, monthly!
Questions, comments, or general confusion? We’ve got your back. Email us at firstname.lastname@example.org.