To review your budget

If you haven't already read the Month-end Procedures Overview, see Reviewing and adjusting budgets for more information.

When reviewing the Balance Sheet (Budget Analysis) or Profit & Loss (Budget Analysis) report, begin by looking at the £ Difference column on the right side of the report. This column shows the difference between the amount you budgeted to spend during the month and the amount you actually recorded for each account in your accounts list. Many accounts will have a slight variation from the amount you've budgeted-that's normal. What you're concerned with is an unusually large departure from the amount you've budgeted.

Here are some differences that should be of particular concern to you:

Any significant variation from the amount you've budgeted deserves further investigation, but these are key areas for you to consider.

Idea: If you need to change your budgets

Make a note on the report of any changes that are needed to your budgets for future periods. That will make your next task-adjusting the budgets-easier.