Control and Monitoring


By analyzing actual results against the budget, the business can maintain control over its business.


Was turnover lower than budget and if so why?

  • Was sales volume down?
  • Did some customers receive larger volume discounts?
  • Will subsequent month’s turnover be similar?
If turnover was higher than budget what was the cause of this?
  • Sales prices higher?
  • Sales volumes higher?
  • If volumes were higher, has this been achieved by pulling forward future demand or is the demand higher than expected?
  • Was the increase achieved by a ‘one off’ large order?
  • Were sales of any individual product lines significantly different from the budget and what were the reasons behind it?  Are some products becoming outdated?
  • Are there other more competitive products coming on to the market?
  • Is there a need to focus on or improve the marketing and promotion of certain products?

How does the month end cash balance compare to the budget and what has caused the differences?

  • Has turnover changed substantially from the budget?
  • Are costs different? E.g. higher costs for repairs and maintenance.
  • Did the timing of cash inflows or outflows differ substantially e.g. were there delays in customers paying and what were the cause of the delays (Was there problems in deliveries, incomplete or not on time, were there errors in invoicing, were there delays in invoicing etc)
  • Was there unforeseen capital expenditure e.g. a new machine was required for a specific contract to be undertaken?
We have spent many years developing budgeting systems and producing management accounts and can provide the expertise that a business needs to quickly produce budgets and forecasts.







  • How do actual costs differ from the budget?
  • Are there any significant variances from the budget, either higher or lower?
  • Were these variances one off or will they be ongoing at the new level?
  • How has the variable costs compared with the budget - for example if a business expects to spend $1,000 in material to produce 1000 widgets but it has spent $1,100, has the price of raw materials increased by 10% or has the waste level increased by 10%?