Budget variance

Budget variance is the difference between the budgeted or planned total amount of revenue or expense and the actual amount of revenue or expense. Budget variance helps a business owner to fix an achievable target amount in a year after evaluating last years budget difference.

Budget variance occurred due to unplanned or poorly planned budgeting also due to some external and uncertain actors.

A business owner needs to analyze budget variance properly in order to set a near achievable budget for the upcoming year also to avoid any future fund issues.

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