Budgets
Create budgets and compare them against actual performance with variance analysis.
The Budgets page lets you create financial budgets and compare them against your actual results. This helps you track whether your business is performing above or below expectations and identify areas that need attention.
BudgetsOverview
The page has a two-column layout:
- Left column — A list of all your budgets, each showing its name, period, and status
- Right column — When you select a budget, a detailed comparison of budget versus actual figures appears
Creating a budget
Click New Budget
Click the New Budget button at the top of the page.
Enter the budget details
Fill in:
- Budget Name — A descriptive name (e.g. "Q1 2026 Operating Budget", "Annual Budget 2026")
- Type — Choose the budget period type: Annual, Quarterly, or Monthly
- Start Date — The first day of the budget period
- End Date — The last day of the budget period
Create
Click Create. The budget is created in Draft status, ready for you to add budget amounts.
Budget statuses
| Status | Meaning |
|---|---|
| Draft | The budget is being prepared — amounts can still be adjusted |
| Active | The budget is finalised and being used for variance analysis |
Budget vs Actual comparison
When you select a budget from the list, the right column shows a line-by-line comparison:
| Column | Description |
|---|---|
| Account | The general ledger account name |
| Budget | The budgeted amount for the period |
| Actual | The actual amount from your posted journal entries |
| Variance | The difference between budget and actual. A positive variance (spending below budget or revenue above budget) is shown in green. A negative variance (overspending or underperformance) is shown in red with a trending icon. |
At the bottom, the Total Variance summarises the overall difference.
Understanding variance
Variance tells you how reality compares to your plan:
- Favourable variance (green, down-trending icon) — For expenses, this means you spent less than budgeted. For revenue, it means you earned more than expected.
- Unfavourable variance (red, up-trending icon) — For expenses, this means you spent more than budgeted. For revenue, it means you earned less than expected.
Regular monitoring
Review your budgets monthly to catch variances early. Small unfavourable variances are easier to correct than large ones discovered at year-end.
Tips
- Start with a simple annual budget for your main expense categories, then add more detail over time
- Use previous year actuals as a starting point for next year's budget
- Create separate budgets for different time periods (quarterly budgets give more granular tracking than annual)
- Share budget variance reports with department heads so they can manage their spending