Line-by-line comparison
Every budget line against actuals.
All management reporting & budgeting services
Management Reporting & Budgeting
Budget vs Actuals and Variance Analysis
Every month, FinAura sets each line of your budget against the actual result, highlights the variances that matter by size and direction, and writes down the reason for each one after checking with the person who owns it. Small timing differences are noted and set aside; real shortfalls and overspends are followed up.
- Chartered Accountant-led
- Bangalore and across India
- Reply within one business day
What is covered
What Budget vs Actuals and Variance Analysis Covers
Where the year is off plan, and why.
Materiality
Only the gaps that matter, highlighted.
Timing vs real
Phasing differences set apart.
Explanations
Reasons from the budget owners.
Forecast link
What it means for the year.
Actions
Owners and dates for fixes.
How the month runs
How It Works
Compare, filter, ask, report.
Step 1
Compare
- Budget loaded
- Actuals closed
- Variances computed
Step 2
Filter
- Material gaps
- Timing differences
- One-offs
Step 3
Ask
- Owners consulted
- Reasons noted
- Fixes agreed
Step 4
Report
- Variance note
- Forecast updated
- Actions tracked
Your part
What We Need From You
- 01Your budget
- 02Access to closed books
- 03Budget owners' availability
- 04Context on one-off events
Our part
What You Get
- A monthly variance report
- Reasons, not just differences
- A forecast that reflects them
- Actions with owners
A common question
How do you read a variance report?
Look first at the few lines with the largest variances, then ask whether each is timing (it will catch up), one-off (it will not recur) or a real change in the business.
Only the real changes need action, and they should flow into the forecast for the rest of the year.
See budgeting and forecastingVarianceExplained and acted on
ActualsFrom the books
BudgetThe plan
Who it is for
Who It Is For
Companies with a budget
That nobody checks.
Department heads
Owning their lines.
Boards and investors
Expecting explanations.
Businesses off plan
Needing to know why.
The rules, in plain English
What the Law Asks of Your Books
Companies Act, 2013
Section 128
Every company keeps books of account that give a true and fair view of its affairs, at its registered office or another place the Board decides, and preserves them for at least the eight financial years before the current one.
Official source: mca.gov.inCompanies (Accounts) Rules, 2014
Rule 3
Books kept electronically must stay accessible in India at all times, with a daily back-up on servers physically in India. For financial years starting on or after 1 April 2023, the accounting software must keep an audit trail of every change that cannot be switched off.
Official source: mca.gov.inCGST Act, 2017
Sections 35 and 36
Every GST-registered business keeps its accounts and records at its principal place of business and retains them for 72 months from the due date of the annual return for that year, or longer while an appeal or proceeding is open.
Official source: cbic-gst.gov.inIncome-tax law
Books and tax audit
Businesses and professions above the prescribed limits must keep books of account, and a tax audit follows above further limits. The limits change from time to time, so we confirm which apply to you before the year starts.
Official source: incometax.gov.inThis is general information, not advice for your situation; we confirm what applies to you before any work starts.
Questions we get asked
Budget vs Actuals and Variance Analysis: Questions, Answered
What is variance analysis?
Comparing actual results with the budget, line by line, and explaining the significant differences.
What counts as a material variance?
One large enough, by amount or percentage, to change a decision. We agree the threshold with you.
Can you do this if our budget is rough?
Yes. A rough budget is still a yardstick, and the first variance reports show where the next budget needs more care.
Is this part of the monthly MIS?
It can be: the variance summary sits in the MIS, with the detail behind it.
Often Taken Together
All 9 Management Reporting & Budgeting services01Management Reporting & BudgetingBudgeting and ForecastingAn annual budget built with your team, rolling forecasts updated monthly, and variance analysis that explains the gaps.02Management Reporting & BudgetingMonthly MIS ReportingA management information report you can read in ten minutes: P&L, cash, receivables, payables and the KPIs that matter in your business, with commentary.03Accounting & FinanceVirtual CFOA Chartered Accountant reading your numbers, planning cash and guiding decisions.04Accounting & FinanceFinance OperationsReconciliations, payables, receivables and a predictable month-end close.