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Chapter 27. Budgeting > Troubleshooting

Troubleshooting

Earnings Versus Budget

My company earned more than I budgeted for last month. Do I change the budget to reflect the additional earnings?

You don’t have to change the budget every time there is a difference between the budgeted amounts and the real life amounts. The budget, in fact, provides you with an opportunity to see how you thought the company would perform and to compare that with how it actually performed. If you change the budget, you lose the opportunity to note the difference between the two. On the other hand, if you think the net increase in revenue marks the beginning of a trend, you might want to consider revising your budgeted revenue for future months, so that you can better plan how the rest of the year will proceed economically.


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