How to Set Up and Use Budget vs. Actual Revenue Reports?
- Anna Branquinho |
- 17 steps |
- 2 minutes
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Click "Finance" module.
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Click "Revenue Groups" tab.
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Click "+ ADD »"
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Give your Revenue Group a name.
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Click "SAVE"
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Click "Ledgers" tab.
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Link your revenue group to an existing ledger or create a new ledger to link the new ledger to a revenue group.
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Click "SAVE"
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Click "Reports" module.
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Click "Yearly Metrics" tab.
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Click "Budget vs Actual revenue" to view your actual revenue performance. This will show you either your total revenue or the revenue according to specified groups.
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Located on the right of the “actual” revenue amount is an editable box where you can insert budgets or targets for forecasting and measuring your actual revenue.
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The actual revenue will be measured against the budget and represented as a percentage on the right side of the budget. If the percentage is negative (e.g., 19.9%), the actual revenue has underperformed against the target. If the percentage is positive (e.g., 80%), then the actual revenue has exceeded the budget by that percentage.
Budgets can be edited anytime, and budgets can be set according to the month or revenue group.
How to use and read the Budget vs. Actual revenue report?
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The year selected to forecast and measure is the existing year (2023). This can be changed in the year selector dropdown situated above the report.
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The screenshot below shows that the report displays the total revenue, the room revenue (a revenue group), and the beach bar’s (another revenue group) performance over January and February of 2023.
By setting a budget for each month (a target), you can measure the changes in revenue performance over the months of a year.
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For example, if we look at the total revenue for February 2023, a budget (target) has been set for R323, 950, 40. The “actual” revenue performance was just over R40 million meaning the hotel overperformed by roughly 28 percent.
