Revised Budget

Brian D

At work we have an original budget at the start of the year. Six months into the year, we have an additional column called "Revised Budget". With the revised budget, i need to know that this is the budget that we can change to reflect new information that has become available. At work, the revised budget shows a deficit of £8k but actual shows a surplus of £480k!! I take it I would need to go back and change the revised budget so that it more or less reflects actual?

Thanks,
Brian

paulstafford

I suggest the "revised budget" should show what you anticipate the year end position to be taking into account the events of the first 6 months.

Paul C

I'd take a step back and look at the actual entries for the year to date. It sounds like a big variance. Something may have been incorrectly coded & a journal may be needed to correct it. Which may leave the revised budget correct at 8k.

You could also be missing some entries that you need to chase up.

Also have a look at the budget profile - what happened last year & especially at the same point in the year. It may correctly show actuals of 480k at this point in the year with some big entries due later in the year to clear it back to 8k.

Of course the 8k could just be wrong........but only change it if you know that the entries in the actuals are correct or can explain why is it 480k and not 8k