Get Actual Versus Budget Ytd

actual" is shorthand for budget to actual variance analysis. It refers to the process of comparing estimated results to actual results. Businesses study budget to actual to evaluate their performance, forecast future income and identify any operational centers that are performing differently than expected.

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.

A budget to actual variance analysis is a process by which a company's budget is compared to actual results and the reasons for the variance are interpreted. The purpose of all variance analysis is to provoke questions such as: Why did one division, product line or service perform better (or worse) than the others?

To calculate YTD, subtract its value on January 1st from its current value. Divide the difference by the value on January 1st. Multiply the result by 100 to convert the figure to a percentage. YTD is always of interest, but three-year and five-year returns tell you more.

Your year-to-date (YTD) total balance (the amount of payments made by your employer since the start of the financial year) is located on the right side of your payslip: The YTD taxable gross total shown on your last payslip can sometimes be different from the gross amount shown on your income statement.

Budget - an estimate of revenues and expenses for an account for a fiscal year. Actuals - the actuals reflect how much revenue an account has actually generated or how much money an account has paid out in expenditures at a given point in time during a fiscal year.

The Year-to-Date (YTD) Budget Report option shows expenses relative to revenue and expense accounts (for which budgets were defined) for the period selected and year-to-date. It allows you to compare the prior year-to-date, the current period, the current year-to-date and annual budget (or year-to-date) amounts.

The term budget vs. actual refers to the difference between your static budget and the actual figures for your company's income and expenses.

Budgeting quantifies the expectation of revenues that a business wants to achieve for a future period, whereas financial forecasting estimates the amount of revenue or income that will be achieved in a future period.

The key difference between a budget and a forecast is that a budget lays out the plan for what a business wants to achieve, while a forecast states its actual expectations for results, usually in a much more summarized format. In essence, a budget is a quantified expectation for what a business wants to achieve.