In this video we will walk through General Ledger budgets, a tool that lets you enter budgets for specific GL accounts and compare them against your actual amounts.
Edit or Delete General Ledger Budgets
GL Budgets allow you to enter budgeted amounts for specific GL accounts and compare them against actual activity to track your firm's financial performance. To access GL budgets:
Navigate to the Accounts page from the left-hand menu.
Select the Budget tab.
Each row represents a budget for a specific account and year.
Columns represent each month, with a Total column on the far right.
Use the pencil icon on the right of a budget to edit it.
Use the trash icon on the right of a budget to delete it.
Manually Enter GL Budgets
This process is best for a small number of accounts. To manually enter a GL budget:
Navigate to the Accounts page from the left-hand menu.
Select the Budget tab.
Click the Add Account Budget button.
Enter the budget details.
Click Save.
Import Budgets via CSV
Navigate to the Accounts page from the left-hand menu.
Select the Budget tab.
Click the Import Account Budgets from CSV button.
Download the template file.
Template includes columns for Account, Year, and each month.
Fill out the template or format your own file to match.
Click the Choose File button to upload the file.
Click the Import button.
Review and Analyze Budgets
Use the Profit and Loss with Budget report to compare actual revenue and expenses against budgeted projections for a selected period, giving you a clear picture of your firm's financial performance.
Navigate to the Reports page from the left-hand menu.
Select the Accounting tab.
Click on the Profit and Loss with Budget report.
Click the All Filters button to filter the report to your needs.
Accounting Method: Accrual or Cash
Division: Filter by office, department, or practice group
Billing Class: Filter by how work is categorized or billed
Exclude Zero Balance Accounts: Hide accounts with no activity
Year and Month: Defaults to the current period; adjust as needed
Click the Apply Filters button.
Optional: Click Export to PDF to save a copy of the report.
Optional: Click Print to print directly from the screen.
Report Layout
The report follows a standard Profit and Loss structure:
Income accounts appear at the top, with Total Income at the bottom of that section.
Expense accounts follow, with Total Expenses at the bottom of that section.
Net Income (Total Income minus Total Expenses) appears at the very bottom of the report.
Key Notes
Total and Net Budget values are aggregated from all underlying accounts.
Net Income is calculated as Total Income minus Total Expenses, for both actuals and budgets.
Understanding Columns
When analyzing the Profit and Loss with Budget report, it is important to understand the Month-to-Date (MTD) and Year-to-Date (YTD) data presented.
Month-to-Date (MTD) Data
MTD Actual: This shows the actual amounts for the current month.
MTD Budget: This indicates the budgeted amounts for the same month.
MTD Variance: The difference between MTD Actual and MTD Budget, highlighting whether you are over or under budget.
% Over/Under Budget: This percentage reflects how actual performance compares to the budget, providing a quick visual cue for performance evaluation.
Year-to-Date (YTD) Data
YTD Actual: Total actual amounts accumulated from January 1 through the end of the selected month.
YTD Budget: Total budgeted amounts for the same period.
YTD Variance: The difference between YTD Actual and YTD Budget, indicating overall performance for the year.
% Over/Under Budget: Similar to MTD, this percentage shows how YTD performance aligns with the budget.
Color Coding for Performance Insights
The report uses color coding to enhance readability:
Red indicates unfavorable results (e.g., expenses over budget).
Black indicates favorable results (e.g., income above budget).