Contents - Index

Account Budgets

General Information:

Account budgets are optional. A budget may be spread across as many years as you wish.  You can create budgets based on the following:
  • The previous, or current, year's transactions, plus/minus a percentage adjustment based on the average value of transactions per month.
  • The previous, or current, year's transactions, plus/minus a percentage based on the actual value of transaction per month (this is more realistic if the business is subject to seasonal fluctuations).
  • As above, except that the budget is split into two periods with different rates of change.  Eg, 6 months at 2.5% and another 6 months at 3.5%.  Or you can create a budget that crosses two years, based on similar criteria.
  • A set amount for each period (month, 3 months, 6 months, etc) of the budget.
  • No set amount.  The amount varies - enter budget amounts after the budget record has been created.

    Budgets enable the creation of a business plan and to compare expected expenditure and income with actual. If budgets are created they are included on various reports beside the transaction totals.

    Creating multiple year budgets is sensible to model a steady increase/decrease. Entering budget figures for multiple years is somewhat time consuming. You should only bother if your bank is demanding the figures, or you have another pressing business need.

    Manual entry requires you enter the budgeted amount for each period - usually a month.  

    Transaction totals of the ledger account the budget is for may be viewed. The Account Statistics panel displays the total amount and the average monthly value of transactions, by date, to assist in creating the new budget.

    If you do not use the manual entry option you have two options:

    1. Create budgets based on the average monthly figures and adjust those by a percentage. Check the Use current year figures  box to use the monthly values of the current year (useful if this is the first year you have used Professionals Retail Business).  Other wise the previous year's average monthly figures are used.

    2. Using actual monthly figures from the year's (previous or current) transactions.  This method results in more accurate budgets when dealing with seasonal variations.

    You may create three budgets for a ledger account - trial, active, inactive.  

    When creating a new budget, delete the currently inactive budget, make the currently active budget inactive and the trial budget active. Then create a new trial budget.  Or, even simpler, have one budget at a time.

    To view all budgets for a department, click the "Print Budget" button, and select "By Department".  A preview copy appears that sums the budget figures for each account.  If you want to compare monthly figures with actual, print off the "Budgets - actual vs budget" from the report menu. 

    Once the budget has been created it is possible to modify the budget amounts further.

    You may create trial budgets as a form of "what if". Trial budgets are not used in comparing actual account totals with budgeted amounts.  When you are happy with a trial budget you may change its status to "Active" or "Inactive". 

    Creating a Budget

    Editing Budgets 

    Changing the Active Budget:

    If you no longer wish to use budgets delete them or various reports will include no longer relevant budget figures.