Budget & Variance Analysis

Plan your spending by account, then compare real numbers against the plan throughout the year. Catch overspending before it becomes a problem.

Setting Up a New Budget

A budget in BizBooks Pro is a named spending plan tied to a fiscal year. You decide how much you expect to earn and spend in each account, and the system measures your actual performance against those targets.

  1. Navigate to Budgets from the sidebar
  2. Click Create Budget
  3. Give the budget a Name (e.g., "2026 Operating Budget" or "Q2 Marketing Plan")
  4. Select the Fiscal Year this budget covers
  5. Click Next to proceed to the period and amount entry screen
Tip: You can maintain more than one budget for the same year. This is useful when you want separate plans for different departments or when you want to keep a "best case" and "conservative" version side by side.

Choosing Your Period

BizBooks Pro supports three budgeting intervals:

Interval Columns Shown Best For
Monthly 12 columns (Jan–Dec) Detailed tracking with seasonal variation
Quarterly 4 columns (Q1–Q4) High-level planning with less data entry
Annual 1 column (Full Year) Simple targets when monthly detail is unnecessary

Select your interval during budget creation. The entry grid adjusts automatically to display the correct number of columns.

Filling In Amounts

The budget entry screen lists every income and expense account from your chart of accounts. For each account, enter the dollar amount you plan to earn or spend in each period.

The grid shows running totals at the bottom of each column and a row total on the right side so you can see the full picture as you type.

Tip: If most months share the same target, enter the amount in the first month and use the Copy Across button to fill all remaining periods instantly. Then adjust individual months as needed.

Saving Your Budget

Click Save Budget when you have finished entering amounts. BizBooks Pro stores the data and makes it available for variance analysis immediately. You can return to edit amounts at any time before the period closes.

Once saved, the budget appears in your budget list with its name, fiscal year, and status (Draft or Active). Mark a budget as Active to designate it as the official plan used in variance reports.

Running the Variance Report

The variance report compares your budgeted amounts against actual figures pulled directly from your general ledger.

  1. Go to Budgets and select the budget you want to analyze
  2. Click View Variance Report
  3. Choose the Date Range to compare (a single month, a quarter, or year-to-date)
  4. The report generates instantly, showing budgeted, actual, and variance columns for every account

Reading the Variance Table

Each row in the variance report represents one account and displays three key columns:

Column Meaning
Budget The amount you planned for that period
Actual The real amount recorded in the ledger
Variance The difference (Actual minus Budget)

Color Coding

BizBooks Pro color-codes variance cells so you can scan the report quickly:

Tip: Pay attention to large red values in expense accounts. A single account that is significantly over budget can erode profitability even when most other categories are on track.

Managing Budgets

From the budget list, you can perform several actions on existing budgets:

Tip: At the start of a new fiscal year, duplicate last year's budget and adjust the numbers rather than building from scratch. This preserves your account structure and gives you a realistic baseline to work from.