Budget vs. Actuals Reporting
5 mins
Hi, I'm Alex, the COO of Air CFO. In this Loom, I'll be introducing you to our new set of tools that will help you set and track your budget for the next 12 to 18 months. With these tools, you can easily set a plan and ensure that your spending is sticking to that plan, so you can understand how your financials are performing against it. I'll be walking you through three different workbooks, including a budget build workbook that pulls directly from QuickBooks to give you the context you need to set your forward-looking budget. We'll also use a set of assumptions that we build out through a one-hour working session with our client to help set both the account level revenue budget, as well as the account level expense budget. We'll combine this with your hiring plan to budget out your headcount-related expenses for the next 12 to 18 months. All of this information is consolidated inside of our full budget workbook, which will help you see your P&L budget, headcount budget, and operating metrics. We'll also show you how to report out on variances against your budget within our new month-end reporting package.
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Hi, my name is Alex. I'm the COO of Air CFO and on this video I'm going to walk you through a new set of tools that we developed at Air CFO to help our clients set and track against a budget for the next 12 to 18 months.
In these times it's really important to, set a plan and ensure that your spending is sticking to that plan so that you can understand how your financials are performing against that plan.
And so I'm going to walk through three different workbooks today. The first one being a budget build workbook, which is a tool that we will, use in order to help you set the budget that you will load into our other views in order to track your actuals against.
So the great thing about this budget build workbook is that it pulls directly from our QuickBooks. In order to give you the context that you need in order to set your forward looking budget.
So, here on the budget summary tab, you can see a summary level view of your historical financial performance for the last 12 months, both from a cash per, from a perspective and from a summary P&L perspective.
If you want to go into a deeper level of granularity, you can look at the profit and loss detail tab and you can see your spend in individual accounts for a specific, specific month and then you can also see the transactions that fed into those accounts for the month.
Going even deeper, you can see this vendor drill down worksheet where we can drill into individual accounts, see the vendor spend by month.
For each of those accounts and then view the transactions that made up the spend for a given month. So, for example, we're going to look at February here and we should see the.
13, 5, 6, 8 spread across these four vendors, ah, right here. So these three tabs can help set the stage for the budget setting process.
And then we use a set of assumptions that we build out through. Through a one hour working session with our client to help set both the account level revenue budget, as well as the account level expense budget.
We combine this assumptions tab with your hiring plan, which we, with load into your new data HQ so that we can budget out your headcount related expenses for the next 12 to 18 months.
And then all of that information is consolidated inside of this full budget work. Cheat. So you can see we have our budget going out for the horizon of the budget.
And we can look at your P and L budget as well as your headcount budget and operating metrics. Once we've set our budget inside of this budget build workbook, we will feed it in to our data HQ.
And then we can report out on our variances against that budget within our new month end reporting. Ah, the new month end reporting package.
So we will be sharing a lot more about this new month end reporting package in separate communications. But just to highlight the places that you can see the budget versus actuals inside of this workbook.
You can see that here in a couple of. Different areas. So here we have our BVA for the revenue side down below.
You can see our BVA for the, ah, department level spend. And then, ah, down below we can also see a BVA for our payroll specific.
Expenses as well. Lastly, if we want to go into even greater detail with our budget versus actuals, have our BVA for each month of the budget timeframe, and you can look at all of your variances at the rolled up level, and then you can drill down into individual.
Individual departments as well. The BVA detail will let you look at a specific month and view all of the account level variances so that when you see variances at the department level, you can drill down into, into to see which individual accounts are contributing to those variances.
And then going even further, you can see the account or the vendors that we spent on within an individual. Individual accounts that you can start to understand the driving causes of some of those variances amongst accounts.
So we hope that this set of tools will help to give you better visibility into your actual financial performance relative to your.
Plan so that we can help you make better financial decisions, extend your runway and increase your chances of startup success.
Please don't hesitate to reach out if you would like us to build this budget for you and help you track.
And if you have any questions or feedback we would love to hear that as well. Thank you.
Transcript
Show Transcript
Hi, my name is Alex. I'm the COO of Air CFO and on this video I'm going to walk you through a new set of tools that we developed at Air CFO to help our clients set and track against a budget for the next 12 to 18 months.
In these times it's really important to, set a plan and ensure that your spending is sticking to that plan so that you can understand how your financials are performing against that plan.
And so I'm going to walk through three different workbooks today. The first one being a budget build workbook, which is a tool that we will, use in order to help you set the budget that you will load into our other views in order to track your actuals against.
So the great thing about this budget build workbook is that it pulls directly from our QuickBooks. In order to give you the context that you need in order to set your forward looking budget.
So, here on the budget summary tab, you can see a summary level view of your historical financial performance for the last 12 months, both from a cash per, from a perspective and from a summary P&L perspective.
If you want to go into a deeper level of granularity, you can look at the profit and loss detail tab and you can see your spend in individual accounts for a specific, specific month and then you can also see the transactions that fed into those accounts for the month.
Going even deeper, you can see this vendor drill down worksheet where we can drill into individual accounts, see the vendor spend by month.
For each of those accounts and then view the transactions that made up the spend for a given month. So, for example, we're going to look at February here and we should see the.
13, 5, 6, 8 spread across these four vendors, ah, right here. So these three tabs can help set the stage for the budget setting process.
And then we use a set of assumptions that we build out through. Through a one hour working session with our client to help set both the account level revenue budget, as well as the account level expense budget.
We combine this assumptions tab with your hiring plan, which we, with load into your new data HQ so that we can budget out your headcount related expenses for the next 12 to 18 months.
And then all of that information is consolidated inside of this full budget work. Cheat. So you can see we have our budget going out for the horizon of the budget.
And we can look at your P and L budget as well as your headcount budget and operating metrics. Once we've set our budget inside of this budget build workbook, we will feed it in to our data HQ.
And then we can report out on our variances against that budget within our new month end reporting. Ah, the new month end reporting package.
So we will be sharing a lot more about this new month end reporting package in separate communications. But just to highlight the places that you can see the budget versus actuals inside of this workbook.
You can see that here in a couple of. Different areas. So here we have our BVA for the revenue side down below.
You can see our BVA for the, ah, department level spend. And then, ah, down below we can also see a BVA for our payroll specific.
Expenses as well. Lastly, if we want to go into even greater detail with our budget versus actuals, have our BVA for each month of the budget timeframe, and you can look at all of your variances at the rolled up level, and then you can drill down into individual.
Individual departments as well. The BVA detail will let you look at a specific month and view all of the account level variances so that when you see variances at the department level, you can drill down into, into to see which individual accounts are contributing to those variances.
And then going even further, you can see the account or the vendors that we spent on within an individual. Individual accounts that you can start to understand the driving causes of some of those variances amongst accounts.
So we hope that this set of tools will help to give you better visibility into your actual financial performance relative to your.
Plan so that we can help you make better financial decisions, extend your runway and increase your chances of startup success.
Please don't hesitate to reach out if you would like us to build this budget for you and help you track.
And if you have any questions or feedback we would love to hear that as well. Thank you.
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