The comparison of differences between actual and planned results
The comparison between actual and planned results is known as variance and it appears on periodic budget reports. Every company’s success can be partly credited to healthy record up keeping practices and crystal clear control protocols in order to conduct the business efficiently.
Internal control is key and to ensure that internal control is smooth, a budget report is extremely essential.
A budget report helps the management to compare the projections with the current state of the organization and record the deviation for further corrections. A periodic budget enumerates the major differences between what the planned results were and whether the company has exceeded or has fallen below its expectations.