Many small business owners think of budgeting as a non-essential task, something they'll get to when they have time. These leaders, who operate their businesses without a formal strategic financial plan, are doing themselves a major disservice, as it can be impossible to consider how far their company has come, when they have no starting point or means of tracking progress.
Actual Expenditure means such sum as a Purchaser spends with STV in respect of Airtime during the Term after deduction of VAT and any other sales tax or duty payable in respect of the purchase of Airtime; Sample 1 Sample 2 Based on 2 documents. Capital expenditure is the money used to buy, improve, or extend the life of fixed assets in an organization, and with a useful life for one year or more. Such assets include things like property, equipment, and infrastructure. Capital expenditures usually take two forms: acquisition expenditures and expansion expenditures. Actual Expenditure means such sum as a Purchaser spends with STV in respect of Airtime during the Term after deduction of VAT and any other sales tax or duty payable in respect of the purchase of Airtime; Sample 1 Sample 2 Based on 2 documents. The comparison of actual vs. Budget often shows a difference, or 'variance,' that can be either favorable or unfavorable. For example, in a cost budget, a lower actual number than the budgeted figure would be considered favorable, while in a sales budget, a higher actual number than the budgeted figure would be seen as favorable. A planned expenditure is what you think is needed to achieve a particular objective, and the actual expenditure is the reality of what it really costs. Part of the difference might be because of risks and uncertainties, and the rest might be due to oversights or mistakes.
Rather than fly by the seat of their pants, these business leaders need to conduct a budget vs. actual comparison. This process involves using financial data to assess how closely a company's spending and generated revenue meets the financial forecasting projections included in its budget. By taking the time to conduct this comparison, business leaders can determine the following: whether there are areas that need more funding; whether the budget is realistic; and whether they are on pace to meet their long-term objectives.
Below are a few tips for understanding budget vs. actual comparison.
What are reasons for the variances?
There are several reasons why there will discrepancies between the budget and the actual amount for expenditures and revenues. These differences can occur because of the strength of the economy, consumer needs or preferences and the actions of competitors. Because these factors can be unpredictable, it's important for small businesses to reflect on the exact cause or causes that resulted in the variance.
How can small business owners interpret the variances?
Creating a budget vs. actual comparison is extremely important for small businesses because it allows them to alter their future financial forecasts based upon the numbers collected in the monthly reports. Small business owners can see where the budget can be improved, as well as parts of the budget that were very accurate. Through better planning, monitoring, evaluating and controlling, small business owners can improve their processes after analyzing the budget vs. actual comparison.
What can be done about the variances?
Depending upon how the actual results compared to the budget, small business owners can make the necessary adjustments to their budget. Whether it be modifying ongoing expenditures or strategies, or cutting back spending on marketing and advertising, small business owners need to use this informative data to improve their budgeting strategies and enhance their operations. However, small business owners should be sure not to overreact and change their budget drastically based on temporary factors that will affect a business for only a short period of time.
var addthis_config = {services_compact: ‘facebook,twitter,linkedin’}
Any other information the university may wish to furnish.PLACE : RegistrarDATE : (Seal) ANNEXURE – XII-A PROGRESS REPOST OF EXPENDITURE Non recurring :University Sanction Letter No. & Date Statement of Actual Expenditure during Sl.NO.Item(s)Grant approved by UGCGrant released by UGC sofarActual expenditure as on (Date)Unspent balanceRemarks1.
The amount that the Bank shall be liable to pay under this Bank Guarantee shall be reduced every Calendar Quarter by the amount of Actual Expenditure incurred by the Lessee in such period, of which the Bank shall receive notice from the Lessor.
Actual Expenditure Vs Planned Expenditure
Final Budget to Actual Expenditure ratio(Rs. in million) ParticularsFY2017-18FY2016-17Budget (Revised)1,020,956934,455Actual Expenditure936,327863,363Difference between budget and actual expenditure (%)-8.29%-7.61% The deviation of actual expenditure from revised budget represents the government’s final effort to adjust budget variations that could not be assessed inoriginal budget.
Further details are available in Appendix 3, comparing the Budget Estimates and Actual Expenditure Payments at the MDA Level and also providing Spending Analysis by Object Code.
Actual Expenditure Vs Budget
The total amount of Le936,528 million (Le657, 585 million – FY2016) for Domestic Development Expenditure represents the Government‟s contribution to various Development Projects.Further details are available in Appendix 4, with Actual Expenditure Payments at the MDA Level.