By analyzing actual results against
the budget, the business can maintain control over its business.
Sales
Was turnover lower than budget and if so why?
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 Are some products becoming outdated?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?
Cash
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.
