{"id":10815,"date":"2024-01-09T15:00:00","date_gmt":"2024-01-09T14:00:00","guid":{"rendered":"https:\/\/beebole.com\/blog\/?p=10815"},"modified":"2026-07-09T11:38:37","modified_gmt":"2026-07-09T09:38:37","slug":"budget-to-actuals-variance-analysis","status":"publish","type":"post","link":"https:\/\/beebole.com\/blog\/budget-to-actuals-variance-analysis","title":{"rendered":"Project cost control made easy: Mastering budget-to-actual variance analysis"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">To deliver a product or service within a specified time and budget, you have to juggle a variety of activities, responsibilities, and stakeholders. Estimating the project&#8217;s cost and keeping tabs on actual spending are two crucial aspects for project managers. <strong>Budget-to-actual variance analysis is the comparison of the budgeted and the actual cost of the project as it progresses.<\/strong><\/p>\n\n\n<div  class=\"position-relative bbl-summarize-w-ai-block\">\n    <div class=\"bbl-swa-inner \">\n        <div class=\"bbl-swa-inner-top\">\n                            <div class=\"bbl-swa-title\">\n                    TL;DR: What you&#8217;ll learn in this article:                <\/div>\n            \n                            <div class=\"bbl-swa-quote montserrat-font\">\n                    <p class=\"font-claude-response-body break-words whitespace-normal\">Budget-to-actuals variance analysis compares what a project was projected to cost against what it actually cost, so you can catch overruns before they derail the project. Here&#8217;s what we cover:<\/p>\n<ul class=\"[li_&amp;]:mb-0 [li_&amp;]:mt-1 [li_&amp;]:gap-1 [&amp;:not(:last-child)_ul]:pb-1 [&amp;:not(:last-child)_ol]:pb-1 list-disc flex flex-col gap-1 pl-8 mb-3\">\n<li class=\"font-claude-response-body whitespace-normal break-words pl-2\"><strong>Budgets vs. actuals:<\/strong> the difference between planned project costs and real spending, walked through with a worked example<\/li>\n<li class=\"font-claude-response-body whitespace-normal break-words pl-2\"><strong>How to calculate variance:<\/strong> the formula for budget variance, and how to break it down into rate variance and volume variance<\/li>\n<li class=\"font-claude-response-body whitespace-normal break-words pl-2\"><strong>Why it matters:<\/strong> how tracking budget vs. actuals supports forecasting, spotting inefficiencies, and communicating with stakeholders<\/li>\n<li class=\"font-claude-response-body whitespace-normal break-words pl-2\"><strong>How to structure a variance report:<\/strong> the sections a finance team or project manager should include, from summary to recommendations for action<\/li>\n<li class=\"font-claude-response-body whitespace-normal break-words pl-2\"><strong>How to track it in Beebole:<\/strong> setting billing, cost, and hours budgets per project, then comparing them to actuals in real time via Excel or Google Sheets<\/li>\n<\/ul>\n                <\/div>\n                    <\/div>\n\n        <div class=\"bbl-swa-actions d-flex justify-content-between\">\n                                                <div\n                        class=\"bbl-swa-actions-label montserrat-font bbl-wider-label\"\n                    >Go deeper with AI:<\/div>\n                            \n            <div class=\"bbl-swa-logos-outer d-flex\">\n                                <div class=\"bbl-swa-logos\">\n                                            <a\n            class=\"bbl-summarize-w-chatgpt\"\n            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mask=\"url(#mask0_1578_5676)\">\n                    <path d=\"M10.9449 9.46396V6.99394C10.9449 6.78592 11.023 6.62986 11.2049 6.52598L16.171 3.66598C16.847 3.276 17.6531 3.09409 18.4849 3.09409C21.6049 3.09409 23.581 5.51214 23.581 8.08603C23.581 8.26799 23.581 8.47602 23.555 8.68404L18.4069 5.66798C18.095 5.48608 17.7828 5.48608 17.4709 5.66798L10.9449 9.46396ZM22.5409 19.084V13.1819C22.5409 12.8178 22.3848 12.5578 22.0729 12.3759L15.5469 8.57989L17.6789 7.35781C17.8609 7.25393 18.0169 7.25393 18.1989 7.35781L23.165 10.2178C24.5951 11.0499 25.557 12.8178 25.557 14.5337C25.557 16.5097 24.3871 18.3297 22.5409 19.0838V19.084ZM9.41092 13.8841L7.27892 12.6361C7.09702 12.5323 7.01893 12.3761 7.01893 12.1681V6.44817C7.01893 3.66625 9.15093 1.5601 12.037 1.5601C13.1291 1.5601 14.1429 1.92419 15.0011 2.57416L9.87915 5.53826C9.56725 5.72016 9.41119 5.98015 9.41119 6.34429V13.8843L9.41092 13.8841ZM14 16.536L10.9449 14.82V11.1802L14 9.46423L17.0548 11.1802V14.82L14 16.536ZM15.963 24.4401C14.8709 24.4401 13.8571 24.076 12.9989 23.4261L18.1208 20.462C18.4328 20.2801 18.5888 20.0201 18.5888 19.6559V12.1159L20.7469 13.3639C20.9288 13.4677 21.0069 13.6238 21.0069 13.8319V19.5518C21.0069 22.3337 18.8488 24.4399 15.963 24.4399V24.4401ZM9.8009 18.6421L4.83475 15.7822C3.40464 14.95 2.44277 13.1822 2.44277 11.4662C2.44277 9.46423 3.63879 7.67025 5.48467 6.91618V12.8442C5.48467 13.2082 5.64079 13.4682 5.95269 13.6502L12.4528 17.4201L10.3208 18.6421C10.1389 18.746 9.98281 18.746 9.8009 18.6421ZM9.51507 22.9061C6.57704 22.9061 4.41898 20.6961 4.41898 17.9661C4.41898 17.7581 4.44504 17.55 4.47089 17.342L9.59288 20.3061C9.90478 20.4881 10.217 20.4881 10.5289 20.3061L17.0548 16.5363V19.0063C17.0548 19.2143 16.9768 19.3704 16.7948 19.4742L11.8288 22.3342C11.1527 22.7242 10.3467 22.9061 9.51479 22.9061H9.51507ZM15.963 26C19.109 26 21.7349 23.7641 22.3331 20.8C25.2451 20.0459 27.1171 17.3159 27.1171 14.534C27.1171 12.7139 26.3372 10.946 24.9331 9.67198C25.0631 9.12594 25.1411 8.57989 25.1411 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27.5237L8.95428 26.8137L11.8295 23.1563L13.5636 20.8897L14.6832 19.5808L14.6754 19.3916H14.6091L6.97246 24.3501L5.61289 24.5256L5.02771 23.9775L5.09988 23.0783L5.37687 22.7857L7.67273 21.2057L7.66493 21.2135L7.66688 21.2213Z\" fill=\"#262C54\"\/>\n            <\/svg>\n        <\/a>\n                                                            <\/div>\n            <\/div>\n        <\/div>\n    <\/div>\n<\/div>\n\n\n<p class=\"wp-block-paragraph\">Alright, let&#8217;s dive in and start right at the beginning. <\/p>\n\n\n\n<h2 id=\"budget-definition\" class=\"wp-block-heading\">What is a budget?<\/h2>\n\n\n\n<div  class=\"montserrat-font my-5 mx-auto bbl_definition_snippet\">\n  <div class=\"mb-4\">\n    <div class=\"bbl-ds-item question mb-3\">\n      <h2 class=\"h4 mb-0 mt-0\">What is a budget?<\/h2>\n    <\/div>\n    <div class=\"bbl-ds-item answer\">\n      <p>A budget is a financial blueprint or a roadmap of how a project is expected to materialize over its lifetime. It provides a basis for monitoring and controlling project expenses.<\/p>\n    <\/div>\n  <\/div>\n<\/div>\n\n\n<p class=\"wp-block-paragraph\">Budgeting involves financial planning and creating an estimate of the associated project costs. That could include costs like materials, labor costs, equipment, and overhead and then comparing these estimates to the amount of funding available. <strong>This ensures the project can be completed within the available time and financial constraints. <\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Budget is also an essential tool for both project managers and finance teams to assess the financial viability of a project. It helps identify potential cost overruns before they occur. This ensures efficient and effective use of resources.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In a tool like Beebole, this translates into <a href=\"https:\/\/beebole.com\/project-financials\">a budget set directly on the project<\/a>: a billing amount, a cost amount, an hours cap, or any combination of the three.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"700\" height=\"490\" src=\"https:\/\/beebole.com\/blog\/wp-content\/uploads\/2026\/07\/setting-up-billing-and-costs-in-Beebole-700x490.png\" alt=\"Beebole allows you set easily set up billing, costs, and hours\" class=\"wp-image-14747\" title=\"\" srcset=\"https:\/\/beebole.com\/blog\/wp-content\/uploads\/2026\/07\/setting-up-billing-and-costs-in-Beebole-700x490.png 700w, https:\/\/beebole.com\/blog\/wp-content\/uploads\/2026\/07\/setting-up-billing-and-costs-in-Beebole-768x538.png 768w, https:\/\/beebole.com\/blog\/wp-content\/uploads\/2026\/07\/setting-up-billing-and-costs-in-Beebole-1536x1076.png 1536w, https:\/\/beebole.com\/blog\/wp-content\/uploads\/2026\/07\/setting-up-billing-and-costs-in-Beebole.png 1600w\" sizes=\"auto, (max-width: 700px) 100vw, 700px\" \/><figcaption class=\"wp-element-caption\">Beebole allows you to split budgets by person or sub-project, so you can see whether it&#8217;s the whole engagement or just one contributor&#8217;s allocation driving the number. <a href=\"https:\/\/beebole.com\/help\/documentation\/budgets\">See how to set up budgets in Beebole<\/a>.<\/figcaption><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\">Example:<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Let&#8217;s say we are working with a company in technology business operations among other high growth companies. And we are looking at a mobile application development project. We have a team of four people working on this project, including a project manager, a frontend developer, a backend developer, and a designer. Let&#8217;s say this is a six-month project. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">We can do some rough financial modeling and come up with an estimate of the time each team member will spend on this project.<\/p>\n\n\n\n<figure data-wp-context=\"{&quot;imageId&quot;:&quot;6a5a1500b7cdb&quot;}\" data-wp-interactive=\"core\/image\" data-wp-key=\"6a5a1500b7cdb\" class=\"wp-block-image aligncenter size-large wp-lightbox-container\"><img loading=\"lazy\" decoding=\"async\" width=\"700\" height=\"164\" data-wp-class--hide=\"state.isContentHidden\" data-wp-class--show=\"state.isContentVisible\" data-wp-init=\"callbacks.setButtonStyles\" data-wp-on--click=\"actions.showLightbox\" data-wp-on--load=\"callbacks.setButtonStyles\" data-wp-on--pointerdown=\"actions.preloadImage\" data-wp-on--pointerenter=\"actions.preloadImageWithDelay\" data-wp-on--pointerleave=\"actions.cancelPreload\" data-wp-on-window--resize=\"callbacks.setButtonStyles\" src=\"https:\/\/beebole.com\/blog\/wp-content\/uploads\/2023\/03\/estimate-for-number-of-hours-spent-for-budget-vs-actual-analysis-700x164.png\" alt=\"To get an estimated budget, you can start by estimating the number of hours that will be spent by each role each month.\" class=\"wp-image-10803\" title=\"\" srcset=\"https:\/\/beebole.com\/blog\/wp-content\/uploads\/2023\/03\/estimate-for-number-of-hours-spent-for-budget-vs-actual-analysis-700x164.png 700w, https:\/\/beebole.com\/blog\/wp-content\/uploads\/2023\/03\/estimate-for-number-of-hours-spent-for-budget-vs-actual-analysis-768x180.png 768w, https:\/\/beebole.com\/blog\/wp-content\/uploads\/2023\/03\/estimate-for-number-of-hours-spent-for-budget-vs-actual-analysis.png 975w\" sizes=\"auto, (max-width: 700px) 100vw, 700px\" \/><button\n\t\t\tclass=\"lightbox-trigger\"\n\t\t\ttype=\"button\"\n\t\t\taria-haspopup=\"dialog\"\n\t\t\tdata-wp-bind--aria-label=\"state.thisImage.triggerButtonAriaLabel\"\n\t\t\tdata-wp-init=\"callbacks.initTriggerButton\"\n\t\t\tdata-wp-on--click=\"actions.showLightbox\"\n\t\t\tdata-wp-style--right=\"state.thisImage.buttonRight\"\n\t\t\tdata-wp-style--top=\"state.thisImage.buttonTop\"\n\t\t>\n\t\t\t<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"12\" height=\"12\" fill=\"none\" viewBox=\"0 0 12 12\">\n\t\t\t\t<path fill=\"#fff\" d=\"M2 0a2 2 0 0 0-2 2v2h1.5V2a.5.5 0 0 1 .5-.5h2V0H2Zm2 10.5H2a.5.5 0 0 1-.5-.5V8H0v2a2 2 0 0 0 2 2h2v-1.5ZM8 12v-1.5h2a.5.5 0 0 0 .5-.5V8H12v2a2 2 0 0 1-2 2H8Zm2-12a2 2 0 0 1 2 2v2h-1.5V2a.5.5 0 0 0-.5-.5H8V0h2Z\" \/>\n\t\t\t<\/svg>\n\t\t<\/button><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The hourly rate for each of the roles is as below:<\/p>\n\n\n\n<figure data-wp-context=\"{&quot;imageId&quot;:&quot;6a5a1500b7f4b&quot;}\" data-wp-interactive=\"core\/image\" data-wp-key=\"6a5a1500b7f4b\" class=\"wp-block-image aligncenter size-full wp-lightbox-container\"><img loading=\"lazy\" decoding=\"async\" width=\"386\" height=\"211\" data-wp-class--hide=\"state.isContentHidden\" data-wp-class--show=\"state.isContentVisible\" data-wp-init=\"callbacks.setButtonStyles\" data-wp-on--click=\"actions.showLightbox\" data-wp-on--load=\"callbacks.setButtonStyles\" data-wp-on--pointerdown=\"actions.preloadImage\" data-wp-on--pointerenter=\"actions.preloadImageWithDelay\" data-wp-on--pointerleave=\"actions.cancelPreload\" data-wp-on-window--resize=\"callbacks.setButtonStyles\" src=\"https:\/\/beebole.com\/blog\/wp-content\/uploads\/2023\/03\/hourly-rate-per-role-for-budget-variance-analysis-budget-vs-actuals.png\" alt=\"Defining an hourly rate for the budget\" class=\"wp-image-10806\" title=\"\"><button\n\t\t\tclass=\"lightbox-trigger\"\n\t\t\ttype=\"button\"\n\t\t\taria-haspopup=\"dialog\"\n\t\t\tdata-wp-bind--aria-label=\"state.thisImage.triggerButtonAriaLabel\"\n\t\t\tdata-wp-init=\"callbacks.initTriggerButton\"\n\t\t\tdata-wp-on--click=\"actions.showLightbox\"\n\t\t\tdata-wp-style--right=\"state.thisImage.buttonRight\"\n\t\t\tdata-wp-style--top=\"state.thisImage.buttonTop\"\n\t\t>\n\t\t\t<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"12\" height=\"12\" fill=\"none\" viewBox=\"0 0 12 12\">\n\t\t\t\t<path fill=\"#fff\" d=\"M2 0a2 2 0 0 0-2 2v2h1.5V2a.5.5 0 0 1 .5-.5h2V0H2Zm2 10.5H2a.5.5 0 0 1-.5-.5V8H0v2a2 2 0 0 0 2 2h2v-1.5ZM8 12v-1.5h2a.5.5 0 0 0 .5-.5V8H12v2a2 2 0 0 1-2 2H8Zm2-12a2 2 0 0 1 2 2v2h-1.5V2a.5.5 0 0 0-.5-.5H8V0h2Z\" \/>\n\t\t\t<\/svg>\n\t\t<\/button><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">By multiplying the estimated hours with the hourly rate, we come up with the budgeted cost for the project as below.<\/p>\n\n\n\n<figure data-wp-context=\"{&quot;imageId&quot;:&quot;6a5a1500b8150&quot;}\" data-wp-interactive=\"core\/image\" data-wp-key=\"6a5a1500b8150\" class=\"wp-block-image aligncenter size-large wp-lightbox-container\"><img loading=\"lazy\" decoding=\"async\" width=\"700\" height=\"163\" data-wp-class--hide=\"state.isContentHidden\" data-wp-class--show=\"state.isContentVisible\" data-wp-init=\"callbacks.setButtonStyles\" data-wp-on--click=\"actions.showLightbox\" data-wp-on--load=\"callbacks.setButtonStyles\" data-wp-on--pointerdown=\"actions.preloadImage\" data-wp-on--pointerenter=\"actions.preloadImageWithDelay\" data-wp-on--pointerleave=\"actions.cancelPreload\" data-wp-on-window--resize=\"callbacks.setButtonStyles\" src=\"https:\/\/beebole.com\/blog\/wp-content\/uploads\/2023\/03\/estimated-budgeted-project-cost-for-variance-analysis-700x163.png\" alt=\"Before you can do your variance report when looking at budget vs. actuals, you first must have an estimated budgeted project cost\" class=\"wp-image-10804\" title=\"\" srcset=\"https:\/\/beebole.com\/blog\/wp-content\/uploads\/2023\/03\/estimated-budgeted-project-cost-for-variance-analysis-700x163.png 700w, https:\/\/beebole.com\/blog\/wp-content\/uploads\/2023\/03\/estimated-budgeted-project-cost-for-variance-analysis-768x179.png 768w, https:\/\/beebole.com\/blog\/wp-content\/uploads\/2023\/03\/estimated-budgeted-project-cost-for-variance-analysis.png 975w\" sizes=\"auto, (max-width: 700px) 100vw, 700px\" \/><button\n\t\t\tclass=\"lightbox-trigger\"\n\t\t\ttype=\"button\"\n\t\t\taria-haspopup=\"dialog\"\n\t\t\tdata-wp-bind--aria-label=\"state.thisImage.triggerButtonAriaLabel\"\n\t\t\tdata-wp-init=\"callbacks.initTriggerButton\"\n\t\t\tdata-wp-on--click=\"actions.showLightbox\"\n\t\t\tdata-wp-style--right=\"state.thisImage.buttonRight\"\n\t\t\tdata-wp-style--top=\"state.thisImage.buttonTop\"\n\t\t>\n\t\t\t<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"12\" height=\"12\" fill=\"none\" viewBox=\"0 0 12 12\">\n\t\t\t\t<path fill=\"#fff\" d=\"M2 0a2 2 0 0 0-2 2v2h1.5V2a.5.5 0 0 1 .5-.5h2V0H2Zm2 10.5H2a.5.5 0 0 1-.5-.5V8H0v2a2 2 0 0 0 2 2h2v-1.5ZM8 12v-1.5h2a.5.5 0 0 0 .5-.5V8H12v2a2 2 0 0 1-2 2H8Zm2-12a2 2 0 0 1 2 2v2h-1.5V2a.5.5 0 0 0-.5-.5H8V0h2Z\" \/>\n\t\t\t<\/svg>\n\t\t<\/button><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">In the above example, the estimated or budgeted cost of the project is roughly ~$50K.<\/p>\n\n\n\n<h2 id=\"what-are-actual-and-budget-to-actual-variance-analysis\" class=\"wp-block-heading\">What are actual and budget-to-actual variance analysis?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Actual are the costs spent on a project as it progresses. <\/strong>It measures the real cost of the project. While doing the budget vs. actual variance analysis, we can then compare the budget to the real cost to see if the project is on track. In the above example, the team ultimately spent more time than anticipated on several roles.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p class=\"wp-block-paragraph\">With Beebole, <a href=\"https:\/\/beebole.com\/help\/documentation\/billing#billing-rates-turn-tracked-time-into-revenue\">you set a billing, cost, and hours budget per project<\/a> \u2014 and optionally split it by person or sub-project \u2014 then track actuals against it as time is logged. Pull that data directly into <a href=\"https:\/\/beebole.com\/integrations\/excel\">Excel<\/a> or <a href=\"https:\/\/beebole.com\/integrations\/google-sheets\">Google Sheets<\/a> for budget vs. actual analysis, and because both integrations reflect up-to-date data from Beebole, the numbers you&#8217;re working with reflect current project data rather than a static export.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"700\" height=\"394\" src=\"https:\/\/beebole.com\/blog\/wp-content\/uploads\/2026\/07\/Beebole-add-in-for-excel-for-further-analysis-700x394.png\" alt=\"Screenshot of the Beebole add-in for Excel\" class=\"wp-image-14740\" style=\"aspect-ratio:1.7767202062264524;width:700px;height:auto\" title=\"\" srcset=\"https:\/\/beebole.com\/blog\/wp-content\/uploads\/2026\/07\/Beebole-add-in-for-excel-for-further-analysis-700x394.png 700w, https:\/\/beebole.com\/blog\/wp-content\/uploads\/2026\/07\/Beebole-add-in-for-excel-for-further-analysis-768x432.png 768w, https:\/\/beebole.com\/blog\/wp-content\/uploads\/2026\/07\/Beebole-add-in-for-excel-for-further-analysis.png 1366w\" sizes=\"auto, (max-width: 700px) 100vw, 700px\" \/><figcaption class=\"wp-element-caption\"><a href=\"https:\/\/beebole.com\/integrations\/excel\">Beebole&#8217;s add-in for Microsoft Excel<\/a> connects your timesheet and budget data directly to a spreadsheet for real-time reporting.<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Here are few reasons you might want to give it a try:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Real-time access to your data<\/li>\n\n\n\n<li>Easily use pivot tables, calculations, graphs, charts, VBA, and everything else the world of Excel has to offer<\/li>\n\n\n\n<li>Integrate other tools with your timesheet data in Excel, such as Google Data, Power BI, BigQuery, SQL Server, Oracle, and many more<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><a href=\"https:\/\/beebole.com\/timesheet-google-sheets\/\"><img loading=\"lazy\" decoding=\"async\" width=\"700\" height=\"440\" src=\"https:\/\/beebole.com\/blog\/wp-content\/uploads\/2025\/03\/Spreadsheets-Google-Sheets-addon-for-Beebole-700x440.png\" alt=\"Beebole&#039;s addon for Google Sheets is a great option for analyzing project time tracking data and looking into project budget variances.\" class=\"wp-image-13627 underlined-link bbl-link-hs bbl-link-hs-v-2\" title=\"\" srcset=\"https:\/\/beebole.com\/blog\/wp-content\/uploads\/2025\/03\/Spreadsheets-Google-Sheets-addon-for-Beebole-700x440.png 700w, https:\/\/beebole.com\/blog\/wp-content\/uploads\/2025\/03\/Spreadsheets-Google-Sheets-addon-for-Beebole-768x482.png 768w, https:\/\/beebole.com\/blog\/wp-content\/uploads\/2025\/03\/Spreadsheets-Google-Sheets-addon-for-Beebole-1536x964.png 1536w, https:\/\/beebole.com\/blog\/wp-content\/uploads\/2025\/03\/Spreadsheets-Google-Sheets-addon-for-Beebole-2048x1286.png 2048w\" sizes=\"auto, (max-width: 700px) 100vw, 700px\" \/><\/a><figcaption class=\"wp-element-caption\"><a href=\"https:\/\/beebole.com\/integrations\/google-sheets\">Beebole&#8217;s add-on for Google Sheets<\/a> allows you to pull time and budget data into Sheets and keep it updated in real time.<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Here are some of the benefits of syncing your time tracking data with this add-on:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Take advantage of real-time analysis with Google Sheets&#8217; capabilities like custom templates, pivot tables, calculations, Explore, Google AI, and more<\/li>\n\n\n\n<li>Google Sheets makes collaboration easy. You can set permissions and collaborate with multiple teams in real time, including by adding comments, suggesting changes, and having a clear record of activity in reports<\/li>\n\n\n\n<li>Set up automated emails with weekly reports to both colleagues and clients<\/li>\n<\/ul>\n\n\n\n    <div class=\"bbl-testimonials set_testimonials-block\">\n                    <div class=\"item\">\n                <div class=\"item-text\"><span data-sheets-root=\"1\">The presence of a time-tracking system like Beebole is crucial for any service company looking to streamline customer billing and cost control. It enables us to effectively manage income and expense budgets and monitor profitability at every operational level\u2014company, client, project, and employee\/contractor \/vendor.<\/span><\/div>\n                <div class=\"item-author\">\n                    Dmitri Savitski                                            ,                         <span class=\"position-company\">\n                            Solutions expert                                                             at                                                         InDataLabs\t                        <\/span>\n                                    <\/div>\n            <\/div>\n            <\/div>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<figure data-wp-context=\"{&quot;imageId&quot;:&quot;6a5a1500b87b8&quot;}\" data-wp-interactive=\"core\/image\" data-wp-key=\"6a5a1500b87b8\" class=\"wp-block-image aligncenter size-large is-resized wp-lightbox-container\"><img loading=\"lazy\" decoding=\"async\" width=\"700\" height=\"490\" data-wp-class--hide=\"state.isContentHidden\" data-wp-class--show=\"state.isContentVisible\" data-wp-init=\"callbacks.setButtonStyles\" data-wp-on--click=\"actions.showLightbox\" data-wp-on--load=\"callbacks.setButtonStyles\" data-wp-on--pointerdown=\"actions.preloadImage\" data-wp-on--pointerenter=\"actions.preloadImageWithDelay\" data-wp-on--pointerleave=\"actions.cancelPreload\" data-wp-on-window--resize=\"callbacks.setButtonStyles\" src=\"https:\/\/beebole.com\/blog\/wp-content\/uploads\/2026\/07\/Multi-dimensional-reports-in-Beebole-700x490.png\" alt=\"Beebole&#039;s reporting dashboard offers multi-dimensional finance and time reports\" class=\"wp-image-14741\" style=\"width:700px;height:auto\" title=\"\" srcset=\"https:\/\/beebole.com\/blog\/wp-content\/uploads\/2026\/07\/Multi-dimensional-reports-in-Beebole-700x490.png 700w, https:\/\/beebole.com\/blog\/wp-content\/uploads\/2026\/07\/Multi-dimensional-reports-in-Beebole-768x538.png 768w, https:\/\/beebole.com\/blog\/wp-content\/uploads\/2026\/07\/Multi-dimensional-reports-in-Beebole-1536x1076.png 1536w, https:\/\/beebole.com\/blog\/wp-content\/uploads\/2026\/07\/Multi-dimensional-reports-in-Beebole-2048x1435.png 2048w\" sizes=\"auto, (max-width: 700px) 100vw, 700px\" \/><button\n\t\t\tclass=\"lightbox-trigger\"\n\t\t\ttype=\"button\"\n\t\t\taria-haspopup=\"dialog\"\n\t\t\tdata-wp-bind--aria-label=\"state.thisImage.triggerButtonAriaLabel\"\n\t\t\tdata-wp-init=\"callbacks.initTriggerButton\"\n\t\t\tdata-wp-on--click=\"actions.showLightbox\"\n\t\t\tdata-wp-style--right=\"state.thisImage.buttonRight\"\n\t\t\tdata-wp-style--top=\"state.thisImage.buttonTop\"\n\t\t>\n\t\t\t<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"12\" height=\"12\" fill=\"none\" viewBox=\"0 0 12 12\">\n\t\t\t\t<path fill=\"#fff\" d=\"M2 0a2 2 0 0 0-2 2v2h1.5V2a.5.5 0 0 1 .5-.5h2V0H2Zm2 10.5H2a.5.5 0 0 1-.5-.5V8H0v2a2 2 0 0 0 2 2h2v-1.5ZM8 12v-1.5h2a.5.5 0 0 0 .5-.5V8H12v2a2 2 0 0 1-2 2H8Zm2-12a2 2 0 0 1 2 2v2h-1.5V2a.5.5 0 0 0-.5-.5H8V0h2Z\" \/>\n\t\t\t<\/svg>\n\t\t<\/button><figcaption class=\"wp-element-caption\"><a href=\"https:\/\/beebole.com\/help\/documentation\/custom-reports#custom-reports-columns-charts-and-matrix\">Beebole&#8217;s reporting dashboard<\/a> lets you toggle between table and chart view \u2014 including bar, stacked bar, line, and 8 other chart types \u2014 to visualize budget vs. actual variance at a glance.<\/figcaption><\/figure>\n\n\n\n<figure data-wp-context=\"{&quot;imageId&quot;:&quot;6a5a1500b899b&quot;}\" data-wp-interactive=\"core\/image\" data-wp-key=\"6a5a1500b899b\" class=\"wp-block-image aligncenter size-large wp-lightbox-container\"><img loading=\"lazy\" decoding=\"async\" width=\"700\" height=\"167\" data-wp-class--hide=\"state.isContentHidden\" data-wp-class--show=\"state.isContentVisible\" data-wp-init=\"callbacks.setButtonStyles\" data-wp-on--click=\"actions.showLightbox\" data-wp-on--load=\"callbacks.setButtonStyles\" data-wp-on--pointerdown=\"actions.preloadImage\" data-wp-on--pointerenter=\"actions.preloadImageWithDelay\" data-wp-on--pointerleave=\"actions.cancelPreload\" data-wp-on-window--resize=\"callbacks.setButtonStyles\" src=\"https:\/\/beebole.com\/blog\/wp-content\/uploads\/2023\/03\/tracking-number-of-hours-for-budgets-vs.-actuals-700x167.png\" alt=\"A key piece of budget vs. actual variance analysis is tracking the number of hours worked\" class=\"wp-image-10810\" title=\"\" srcset=\"https:\/\/beebole.com\/blog\/wp-content\/uploads\/2023\/03\/tracking-number-of-hours-for-budgets-vs.-actuals-700x167.png 700w, https:\/\/beebole.com\/blog\/wp-content\/uploads\/2023\/03\/tracking-number-of-hours-for-budgets-vs.-actuals-768x184.png 768w, https:\/\/beebole.com\/blog\/wp-content\/uploads\/2023\/03\/tracking-number-of-hours-for-budgets-vs.-actuals.png 975w\" sizes=\"auto, (max-width: 700px) 100vw, 700px\" \/><button\n\t\t\tclass=\"lightbox-trigger\"\n\t\t\ttype=\"button\"\n\t\t\taria-haspopup=\"dialog\"\n\t\t\tdata-wp-bind--aria-label=\"state.thisImage.triggerButtonAriaLabel\"\n\t\t\tdata-wp-init=\"callbacks.initTriggerButton\"\n\t\t\tdata-wp-on--click=\"actions.showLightbox\"\n\t\t\tdata-wp-style--right=\"state.thisImage.buttonRight\"\n\t\t\tdata-wp-style--top=\"state.thisImage.buttonTop\"\n\t\t>\n\t\t\t<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"12\" height=\"12\" fill=\"none\" viewBox=\"0 0 12 12\">\n\t\t\t\t<path fill=\"#fff\" d=\"M2 0a2 2 0 0 0-2 2v2h1.5V2a.5.5 0 0 1 .5-.5h2V0H2Zm2 10.5H2a.5.5 0 0 1-.5-.5V8H0v2a2 2 0 0 0 2 2h2v-1.5ZM8 12v-1.5h2a.5.5 0 0 0 .5-.5V8H12v2a2 2 0 0 1-2 2H8Zm2-12a2 2 0 0 1 2 2v2h-1.5V2a.5.5 0 0 0-.5-.5H8V0h2Z\" \/>\n\t\t\t<\/svg>\n\t\t<\/button><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Budget-to-actual variance analysis comes in handy <strong>when you need to understand how or why your budget is off.<\/strong> For example: The hourly rates you&#8217;d budgeted for have changed. Instead of what was estimated above, take a look at what the real hourly rates turned out to be:<\/p>\n\n\n\n<figure data-wp-context=\"{&quot;imageId&quot;:&quot;6a5a1500b8b74&quot;}\" data-wp-interactive=\"core\/image\" data-wp-key=\"6a5a1500b8b74\" class=\"wp-block-image aligncenter size-full wp-lightbox-container\"><img loading=\"lazy\" decoding=\"async\" width=\"378\" height=\"231\" data-wp-class--hide=\"state.isContentHidden\" data-wp-class--show=\"state.isContentVisible\" data-wp-init=\"callbacks.setButtonStyles\" data-wp-on--click=\"actions.showLightbox\" data-wp-on--load=\"callbacks.setButtonStyles\" data-wp-on--pointerdown=\"actions.preloadImage\" data-wp-on--pointerenter=\"actions.preloadImageWithDelay\" data-wp-on--pointerleave=\"actions.cancelPreload\" data-wp-on-window--resize=\"callbacks.setButtonStyles\" src=\"https:\/\/beebole.com\/blog\/wp-content\/uploads\/2023\/03\/actual-hourly-rates-for-budget-vs-actual-analysis.png\" alt=\"Actual hourly rates are important when finding budget variance\" class=\"wp-image-10800\" title=\"\"><button\n\t\t\tclass=\"lightbox-trigger\"\n\t\t\ttype=\"button\"\n\t\t\taria-haspopup=\"dialog\"\n\t\t\tdata-wp-bind--aria-label=\"state.thisImage.triggerButtonAriaLabel\"\n\t\t\tdata-wp-init=\"callbacks.initTriggerButton\"\n\t\t\tdata-wp-on--click=\"actions.showLightbox\"\n\t\t\tdata-wp-style--right=\"state.thisImage.buttonRight\"\n\t\t\tdata-wp-style--top=\"state.thisImage.buttonTop\"\n\t\t>\n\t\t\t<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"12\" height=\"12\" fill=\"none\" viewBox=\"0 0 12 12\">\n\t\t\t\t<path fill=\"#fff\" d=\"M2 0a2 2 0 0 0-2 2v2h1.5V2a.5.5 0 0 1 .5-.5h2V0H2Zm2 10.5H2a.5.5 0 0 1-.5-.5V8H0v2a2 2 0 0 0 2 2h2v-1.5ZM8 12v-1.5h2a.5.5 0 0 0 .5-.5V8H12v2a2 2 0 0 1-2 2H8Zm2-12a2 2 0 0 1 2 2v2h-1.5V2a.5.5 0 0 0-.5-.5H8V0h2Z\" \/>\n\t\t\t<\/svg>\n\t\t<\/button><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Next, let&#8217;s calculate the actual amount spent on the project at the end of the six months. By multiplying the actual hours with the actual rate, we get the actual cost for the project as shown below.<\/p>\n\n\n\n<figure data-wp-context=\"{&quot;imageId&quot;:&quot;6a5a1500b8d50&quot;}\" data-wp-interactive=\"core\/image\" data-wp-key=\"6a5a1500b8d50\" class=\"wp-block-image aligncenter size-large wp-lightbox-container\"><img loading=\"lazy\" decoding=\"async\" width=\"700\" height=\"165\" data-wp-class--hide=\"state.isContentHidden\" data-wp-class--show=\"state.isContentVisible\" data-wp-init=\"callbacks.setButtonStyles\" data-wp-on--click=\"actions.showLightbox\" data-wp-on--load=\"callbacks.setButtonStyles\" data-wp-on--pointerdown=\"actions.preloadImage\" data-wp-on--pointerenter=\"actions.preloadImageWithDelay\" data-wp-on--pointerleave=\"actions.cancelPreload\" data-wp-on-window--resize=\"callbacks.setButtonStyles\" src=\"https:\/\/beebole.com\/blog\/wp-content\/uploads\/2023\/03\/actual-cost-of-project-700x165.png\" alt=\"How to calculate the actual amount spent on a project at the end of six months\" class=\"wp-image-10798\" title=\"\" srcset=\"https:\/\/beebole.com\/blog\/wp-content\/uploads\/2023\/03\/actual-cost-of-project-700x165.png 700w, https:\/\/beebole.com\/blog\/wp-content\/uploads\/2023\/03\/actual-cost-of-project-768x181.png 768w, https:\/\/beebole.com\/blog\/wp-content\/uploads\/2023\/03\/actual-cost-of-project.png 943w\" sizes=\"auto, (max-width: 700px) 100vw, 700px\" \/><button\n\t\t\tclass=\"lightbox-trigger\"\n\t\t\ttype=\"button\"\n\t\t\taria-haspopup=\"dialog\"\n\t\t\tdata-wp-bind--aria-label=\"state.thisImage.triggerButtonAriaLabel\"\n\t\t\tdata-wp-init=\"callbacks.initTriggerButton\"\n\t\t\tdata-wp-on--click=\"actions.showLightbox\"\n\t\t\tdata-wp-style--right=\"state.thisImage.buttonRight\"\n\t\t\tdata-wp-style--top=\"state.thisImage.buttonTop\"\n\t\t>\n\t\t\t<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"12\" height=\"12\" fill=\"none\" viewBox=\"0 0 12 12\">\n\t\t\t\t<path fill=\"#fff\" d=\"M2 0a2 2 0 0 0-2 2v2h1.5V2a.5.5 0 0 1 .5-.5h2V0H2Zm2 10.5H2a.5.5 0 0 1-.5-.5V8H0v2a2 2 0 0 0 2 2h2v-1.5ZM8 12v-1.5h2a.5.5 0 0 0 .5-.5V8H12v2a2 2 0 0 1-2 2H8Zm2-12a2 2 0 0 1 2 2v2h-1.5V2a.5.5 0 0 0-.5-.5H8V0h2Z\" \/>\n\t\t\t<\/svg>\n\t\t<\/button><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">In the above example, the <strong>actual cost of the project<\/strong> is roughly ~$56.6K, which is obviously a different number than the budgeted $50k.<\/p>\n\n\n<div  class=\"mb-4 call_to_action-block\">\n    <div class=\"call_to_action-blockcontent py-5 px-4 text-center border-top border-bottom\">\n                    <h4 class=\"call_to_action-header h2 mt-0\">Confused by Budget Variances?<\/h4>\n                            <p class=\"call_to_action-text\">Beebole removes the guesswork, pinpointing exactly when and where things go off track. <\/p>\n                <div class=\"call_to_action-btns btns-wrap d-block d-lg-flex justify-content-center mx-auto\">\n                            <a\n                    class=\"w-100 w-lg-auto btn btn-outline-primary text-primary link-light me-lg-4 mb-3 mb-lg-0 bbl_cta_block_demo_btn \"\n                    href=\"https:\/\/beebole.com\/sales-call\"\n                    id=\"cta_post_10815_article_demo_1\"\n                >Book a Call<\/a>\n                                        <a\n                    class=\"w-100 w-lg-auto btn btn-primary text-light bbl_cta_block_signup_btn \"\n                    href=\"https:\/\/app.beebole.com\/signup\"\n                    id=\"cta_post_10815_article_sign_up_1\"\n                ><span>Sign Up<\/span><\/a>\n                    <\/div>\n    <\/div>\n<\/div>\n\n\n<h2 id=\"budget-variance-definition\" class=\"wp-block-heading\">What is a budget variance?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A budget variance is the difference between the budgeted amount and the actual amount. It is calculated by subtracting the budgeted amount from the actual amount. Depending on whether the actual numbers are higher or lower than the budgeted amount. It can be expressed as a positive or negative number. <\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>A positive variance<\/strong> indicates the actual spent was lower than the budgeted amount. This is a positive sign of financial performance. <\/li>\n\n\n\n<li><strong>A negative variance<\/strong> indicates the actual amount spent was higher than the budgeted amount. This indicates under-performance and requires further investigation. <\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Whether positive variance or negative variance,<strong> it\u2019s important to analyze the reasons for variances.<\/strong> This helps decision makers identify areas for improvement and better decision making for future budgeting.<\/p>\n\n\n\n<figure data-wp-context=\"{&quot;imageId&quot;:&quot;6a5a1500b92e9&quot;}\" data-wp-interactive=\"core\/image\" data-wp-key=\"6a5a1500b92e9\" class=\"wp-block-image aligncenter size-large wp-lightbox-container\"><img loading=\"lazy\" decoding=\"async\" width=\"700\" height=\"438\" data-wp-class--hide=\"state.isContentHidden\" data-wp-class--show=\"state.isContentVisible\" data-wp-init=\"callbacks.setButtonStyles\" data-wp-on--click=\"actions.showLightbox\" data-wp-on--load=\"callbacks.setButtonStyles\" data-wp-on--pointerdown=\"actions.preloadImage\" data-wp-on--pointerenter=\"actions.preloadImageWithDelay\" data-wp-on--pointerleave=\"actions.cancelPreload\" data-wp-on-window--resize=\"callbacks.setButtonStyles\" src=\"https:\/\/beebole.com\/blog\/wp-content\/uploads\/2026\/07\/project-budget-cost-tracking-in-Beebole-700x438.png\" alt=\"Beebole&#039;s project status report shows current project costs vs. what was planned\" class=\"wp-image-14742\" title=\"\" srcset=\"https:\/\/beebole.com\/blog\/wp-content\/uploads\/2026\/07\/project-budget-cost-tracking-in-Beebole-700x438.png 700w, https:\/\/beebole.com\/blog\/wp-content\/uploads\/2026\/07\/project-budget-cost-tracking-in-Beebole-768x480.png 768w, https:\/\/beebole.com\/blog\/wp-content\/uploads\/2026\/07\/project-budget-cost-tracking-in-Beebole.png 1147w\" sizes=\"auto, (max-width: 700px) 100vw, 700px\" \/><button\n\t\t\tclass=\"lightbox-trigger\"\n\t\t\ttype=\"button\"\n\t\t\taria-haspopup=\"dialog\"\n\t\t\tdata-wp-bind--aria-label=\"state.thisImage.triggerButtonAriaLabel\"\n\t\t\tdata-wp-init=\"callbacks.initTriggerButton\"\n\t\t\tdata-wp-on--click=\"actions.showLightbox\"\n\t\t\tdata-wp-style--right=\"state.thisImage.buttonRight\"\n\t\t\tdata-wp-style--top=\"state.thisImage.buttonTop\"\n\t\t>\n\t\t\t<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"12\" height=\"12\" fill=\"none\" viewBox=\"0 0 12 12\">\n\t\t\t\t<path fill=\"#fff\" d=\"M2 0a2 2 0 0 0-2 2v2h1.5V2a.5.5 0 0 1 .5-.5h2V0H2Zm2 10.5H2a.5.5 0 0 1-.5-.5V8H0v2a2 2 0 0 0 2 2h2v-1.5ZM8 12v-1.5h2a.5.5 0 0 0 .5-.5V8H12v2a2 2 0 0 1-2 2H8Zm2-12a2 2 0 0 1 2 2v2h-1.5V2a.5.5 0 0 0-.5-.5H8V0h2Z\" \/>\n\t\t\t<\/svg>\n\t\t<\/button><figcaption class=\"wp-element-caption\">A look at Beebole&#8217;s budget status report, which helps you see projects&#8217; financial health and status in real-time.<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/beebole.com\/help\/documentation\/budgets\">Beebole&#8217;s budgeting features<\/a> help automate this comparison with its budget status report: Every budgeted project shows up as a progress bar, with a solid segment for actual consumption against what was planned. Instead of running the numbers manually at the end of a period, you get a notification when a project passes 80% of budget, and another if it goes over \u2014 so a negative variance surfaces while there&#8217;s still time to act on it.<\/p>\n\n\n\n<div\n    class=\"montserrat-font my-5 mx-auto p-4 p-lg-5 bbl_customer_story_blurb\"\n  style=\"background-image:url('https:\/\/beebole.com\/blog\/wp-content\/themes\/sage\/public\/images\/block-csb-bk.18ecf3.png')\"\n>\n  <div class=\"position-relative\">\n    \n    <div class=\"bbl-csb-text\">\n      <p><strong>Rancho BioSciences<\/strong> manages over 100+ simultaneous projects, and they faced major challenges with cost control and budget visibility while previously using spreadsheets. By implementing Beebole\u2019s real-time tracking, budget monitoring, and customizable project views, they gained the visibility needed to:<\/p>\n<p>\ud83d\ude80 Accurately track actual costs vs. budgeted estimates<br \/>\n\ud83d\ude80 Avoid project cost overruns<br \/>\n\ud83d\ude80 Improve invoicing and senior leadership reporting<br \/>\n\ud83d\ude80 Centralize data across teams and tools<\/p>\n<p style=\"text-align: left\"><em>\u201cIt sure beats spreadsheets. I love the snapshot views it gives me. I can log in and easily see the status of 130-140 active projects. I can easily see where they\u2019re all at, and if I wanted to dig deep, you know, all the data is there.\u201d<\/em><\/p>\n    <\/div>\n\n          <a\n        class=\"d-inline-block bbl-csb-link mt-2\"\n        href=\"https:\/\/beebole.com\/blog\/how-to-avoid-project-cost-overruns\/\"\n              >\n        Read the case study\n        <svg width=\"14\" height=\"14\" viewBox=\"0 0 14 14\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n          <path d=\"M5.25 10.5L8.75 7L5.25 3.5\" stroke=\"#424240\" stroke-width=\"1.16667\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/>\n        <\/svg>\n      <\/a>\n      <\/div>\n<\/div>\n\n\n<h2 id=\"why-budget-vs-actuals-matters\" class=\"wp-block-heading\">Why is budget vs. actuals important?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Accurate forecasting and tracking of budget vs. actual provides <strong>a clear picture of the financial performance of the project, the department, and organization as a whole. <\/strong> <em>So what&#8217;s the difference between budgeting to forecasting?<\/em> Budgeting involves <strong>planning and allocating<\/strong> resources for a specific period, while forecasting involves <strong>predicting future outcomes<\/strong> based on past data and current trends.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It allows project managers to identify and address any cost overruns or inefficiencies. This information also helps to make informed decisions to bring the project back on track. Accurate tracking also ensures that the project remains on schedule and within budget. It also helps to find cost savings and resource optimization opportunities, which is obviously critical for any project managers or finance teams using this information.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Let\u2019s take a deeper look at why understanding your budget vs. actuals is important:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">1. It provides a clear forecast of the financial performance of a project.<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">This is critical for stakeholders, as it helps assess the financial viability of the project. It also makes room for informed decisions about future projects. The analysis allows project managers to find patterns and trends in the actual costs. They can then make more accurate cost estimates for future projects.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2. It helps to identify any variances in the project costs.<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Variances are an equally important indicator of project performance. It helps identify areas where the project is underperforming or over-performing. This data or information allows project managers to make informed decisions about how the project can be adapted to meet the budget and cash flow.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">3. It facilitates stakeholder communication.<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">By providing stakeholders with accurate and up-to-date information about project finances, project managers and finance teams can build trust and confidence with their team, sponsors, and other stakeholders.<\/p>\n\n\n\n<h2 id=\"how-to-calculate-budget-variance\" class=\"wp-block-heading\">How do you calculate the variance?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The formula for variance in budget vs. actual depends on the context and the data or information being analyzed.<strong> Variance in budget versus actual refers to the difference between the budgeted amount and the actual amount spent in a given period.<\/strong> And it can be used to assess performance and identify areas where adjustments may be needed.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Variance = Actual amount &#8211; Budgeted amount<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Continuing with our example, here is a snapshot of actuals vs. budget variance analysis: <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">We had estimated about 570 hours of time and $5,100 as the total projected cost of the project. Turns out we ended up spending 635 hours and $56,640. That means that we overran our initial estimate by 65 hours and $6,500.<\/p>\n\n\n\n<figure data-wp-context=\"{&quot;imageId&quot;:&quot;6a5a1500b9c4b&quot;}\" data-wp-interactive=\"core\/image\" data-wp-key=\"6a5a1500b9c4b\" class=\"wp-block-image aligncenter size-large wp-lightbox-container\"><img loading=\"lazy\" decoding=\"async\" width=\"700\" height=\"169\" data-wp-class--hide=\"state.isContentHidden\" data-wp-class--show=\"state.isContentVisible\" data-wp-init=\"callbacks.setButtonStyles\" data-wp-on--click=\"actions.showLightbox\" data-wp-on--load=\"callbacks.setButtonStyles\" data-wp-on--pointerdown=\"actions.preloadImage\" data-wp-on--pointerenter=\"actions.preloadImageWithDelay\" data-wp-on--pointerleave=\"actions.cancelPreload\" data-wp-on-window--resize=\"callbacks.setButtonStyles\" src=\"https:\/\/beebole.com\/blog\/wp-content\/uploads\/2023\/03\/snapshot-for-actuals-vs.-budget-variance-analysis-700x169.png\" alt=\"A snapshot of what variance looks like in terms of a number and a percentage\" class=\"wp-image-10809\" title=\"\" srcset=\"https:\/\/beebole.com\/blog\/wp-content\/uploads\/2023\/03\/snapshot-for-actuals-vs.-budget-variance-analysis-700x169.png 700w, https:\/\/beebole.com\/blog\/wp-content\/uploads\/2023\/03\/snapshot-for-actuals-vs.-budget-variance-analysis-768x185.png 768w, https:\/\/beebole.com\/blog\/wp-content\/uploads\/2023\/03\/snapshot-for-actuals-vs.-budget-variance-analysis.png 975w\" sizes=\"auto, (max-width: 700px) 100vw, 700px\" \/><button\n\t\t\tclass=\"lightbox-trigger\"\n\t\t\ttype=\"button\"\n\t\t\taria-haspopup=\"dialog\"\n\t\t\tdata-wp-bind--aria-label=\"state.thisImage.triggerButtonAriaLabel\"\n\t\t\tdata-wp-init=\"callbacks.initTriggerButton\"\n\t\t\tdata-wp-on--click=\"actions.showLightbox\"\n\t\t\tdata-wp-style--right=\"state.thisImage.buttonRight\"\n\t\t\tdata-wp-style--top=\"state.thisImage.buttonTop\"\n\t\t>\n\t\t\t<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"12\" height=\"12\" fill=\"none\" viewBox=\"0 0 12 12\">\n\t\t\t\t<path fill=\"#fff\" d=\"M2 0a2 2 0 0 0-2 2v2h1.5V2a.5.5 0 0 1 .5-.5h2V0H2Zm2 10.5H2a.5.5 0 0 1-.5-.5V8H0v2a2 2 0 0 0 2 2h2v-1.5ZM8 12v-1.5h2a.5.5 0 0 0 .5-.5V8H12v2a2 2 0 0 1-2 2H8Zm2-12a2 2 0 0 1 2 2v2h-1.5V2a.5.5 0 0 0-.5-.5H8V0h2Z\" \/>\n\t\t\t<\/svg>\n\t\t<\/button><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Let&#8217;s analyze budget vs. actual to figure out what caused this overrun: <\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>More time spent by backend developer and product designer<\/li>\n<\/ul>\n\n\n\n<figure data-wp-context=\"{&quot;imageId&quot;:&quot;6a5a1500b9e97&quot;}\" data-wp-interactive=\"core\/image\" data-wp-key=\"6a5a1500b9e97\" class=\"wp-block-image aligncenter size-large wp-lightbox-container\"><img loading=\"lazy\" decoding=\"async\" width=\"700\" height=\"181\" data-wp-class--hide=\"state.isContentHidden\" data-wp-class--show=\"state.isContentVisible\" data-wp-init=\"callbacks.setButtonStyles\" data-wp-on--click=\"actions.showLightbox\" data-wp-on--load=\"callbacks.setButtonStyles\" data-wp-on--pointerdown=\"actions.preloadImage\" data-wp-on--pointerenter=\"actions.preloadImageWithDelay\" data-wp-on--pointerleave=\"actions.cancelPreload\" data-wp-on-window--resize=\"callbacks.setButtonStyles\" src=\"https:\/\/beebole.com\/blog\/wp-content\/uploads\/2023\/03\/analyzing-budget-vs.-actual-overrun-700x181.png\" alt=\"When analyzing budget vs. actuals, you can find discrepancies like this example shows, where there was more time spent than estimated\" class=\"wp-image-10801\" title=\"\" srcset=\"https:\/\/beebole.com\/blog\/wp-content\/uploads\/2023\/03\/analyzing-budget-vs.-actual-overrun-700x181.png 700w, https:\/\/beebole.com\/blog\/wp-content\/uploads\/2023\/03\/analyzing-budget-vs.-actual-overrun-768x198.png 768w, https:\/\/beebole.com\/blog\/wp-content\/uploads\/2023\/03\/analyzing-budget-vs.-actual-overrun.png 975w\" sizes=\"auto, (max-width: 700px) 100vw, 700px\" \/><button\n\t\t\tclass=\"lightbox-trigger\"\n\t\t\ttype=\"button\"\n\t\t\taria-haspopup=\"dialog\"\n\t\t\tdata-wp-bind--aria-label=\"state.thisImage.triggerButtonAriaLabel\"\n\t\t\tdata-wp-init=\"callbacks.initTriggerButton\"\n\t\t\tdata-wp-on--click=\"actions.showLightbox\"\n\t\t\tdata-wp-style--right=\"state.thisImage.buttonRight\"\n\t\t\tdata-wp-style--top=\"state.thisImage.buttonTop\"\n\t\t>\n\t\t\t<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"12\" height=\"12\" fill=\"none\" viewBox=\"0 0 12 12\">\n\t\t\t\t<path fill=\"#fff\" d=\"M2 0a2 2 0 0 0-2 2v2h1.5V2a.5.5 0 0 1 .5-.5h2V0H2Zm2 10.5H2a.5.5 0 0 1-.5-.5V8H0v2a2 2 0 0 0 2 2h2v-1.5ZM8 12v-1.5h2a.5.5 0 0 0 .5-.5V8H12v2a2 2 0 0 1-2 2H8Zm2-12a2 2 0 0 1 2 2v2h-1.5V2a.5.5 0 0 0-.5-.5H8V0h2Z\" \/>\n\t\t\t<\/svg>\n\t\t<\/button><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Overall, the backend developer ended up spending 360 hours on the project vs. the 300 hours estimated. Similarly, the product designer spent 85 hours vs. the budgeted 60 hours.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Higher hourly rate for the Project Manager and Product Designer<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Here are the budgeted hourly rates that were uploaded in Beebole.<\/p>\n\n\n\n<figure data-wp-context=\"{&quot;imageId&quot;:&quot;6a5a1500ba0c4&quot;}\" data-wp-interactive=\"core\/image\" data-wp-key=\"6a5a1500ba0c4\" class=\"wp-block-image aligncenter size-full wp-lightbox-container\"><img loading=\"lazy\" decoding=\"async\" width=\"319\" height=\"168\" data-wp-class--hide=\"state.isContentHidden\" data-wp-class--show=\"state.isContentVisible\" data-wp-init=\"callbacks.setButtonStyles\" data-wp-on--click=\"actions.showLightbox\" data-wp-on--load=\"callbacks.setButtonStyles\" data-wp-on--pointerdown=\"actions.preloadImage\" data-wp-on--pointerenter=\"actions.preloadImageWithDelay\" data-wp-on--pointerleave=\"actions.cancelPreload\" data-wp-on-window--resize=\"callbacks.setButtonStyles\" src=\"https:\/\/beebole.com\/blog\/wp-content\/uploads\/2023\/03\/budgeted-hourly-rates-for-variance-reporting.png\" alt=\"Knowing the budgeted hourly rate is key when starting to look at budget vs. actuals analysis\" class=\"wp-image-10802\" title=\"\"><button\n\t\t\tclass=\"lightbox-trigger\"\n\t\t\ttype=\"button\"\n\t\t\taria-haspopup=\"dialog\"\n\t\t\tdata-wp-bind--aria-label=\"state.thisImage.triggerButtonAriaLabel\"\n\t\t\tdata-wp-init=\"callbacks.initTriggerButton\"\n\t\t\tdata-wp-on--click=\"actions.showLightbox\"\n\t\t\tdata-wp-style--right=\"state.thisImage.buttonRight\"\n\t\t\tdata-wp-style--top=\"state.thisImage.buttonTop\"\n\t\t>\n\t\t\t<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"12\" height=\"12\" fill=\"none\" viewBox=\"0 0 12 12\">\n\t\t\t\t<path fill=\"#fff\" d=\"M2 0a2 2 0 0 0-2 2v2h1.5V2a.5.5 0 0 1 .5-.5h2V0H2Zm2 10.5H2a.5.5 0 0 1-.5-.5V8H0v2a2 2 0 0 0 2 2h2v-1.5ZM8 12v-1.5h2a.5.5 0 0 0 .5-.5V8H12v2a2 2 0 0 1-2 2H8Zm2-12a2 2 0 0 1 2 2v2h-1.5V2a.5.5 0 0 0-.5-.5H8V0h2Z\" \/>\n\t\t\t<\/svg>\n\t\t<\/button><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">And here are the actual hourly rates that were logged in Beebole.<\/p>\n\n\n\n<figure data-wp-context=\"{&quot;imageId&quot;:&quot;6a5a1500ba2a6&quot;}\" data-wp-interactive=\"core\/image\" data-wp-key=\"6a5a1500ba2a6\" class=\"wp-block-image aligncenter size-full wp-lightbox-container\"><img loading=\"lazy\" decoding=\"async\" width=\"394\" height=\"248\" data-wp-class--hide=\"state.isContentHidden\" data-wp-class--show=\"state.isContentVisible\" data-wp-init=\"callbacks.setButtonStyles\" data-wp-on--click=\"actions.showLightbox\" data-wp-on--load=\"callbacks.setButtonStyles\" data-wp-on--pointerdown=\"actions.preloadImage\" data-wp-on--pointerenter=\"actions.preloadImageWithDelay\" data-wp-on--pointerleave=\"actions.cancelPreload\" data-wp-on-window--resize=\"callbacks.setButtonStyles\" src=\"https:\/\/beebole.com\/blog\/wp-content\/uploads\/2023\/03\/actual-hourly-rates-for-budget-variance-analysis.png\" alt=\"These actual hourly rates are plugged into time tracking software like Beebole for accurate budget variance analysis.\" class=\"wp-image-10799\" title=\"\"><button\n\t\t\tclass=\"lightbox-trigger\"\n\t\t\ttype=\"button\"\n\t\t\taria-haspopup=\"dialog\"\n\t\t\tdata-wp-bind--aria-label=\"state.thisImage.triggerButtonAriaLabel\"\n\t\t\tdata-wp-init=\"callbacks.initTriggerButton\"\n\t\t\tdata-wp-on--click=\"actions.showLightbox\"\n\t\t\tdata-wp-style--right=\"state.thisImage.buttonRight\"\n\t\t\tdata-wp-style--top=\"state.thisImage.buttonTop\"\n\t\t>\n\t\t\t<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"12\" height=\"12\" fill=\"none\" viewBox=\"0 0 12 12\">\n\t\t\t\t<path fill=\"#fff\" d=\"M2 0a2 2 0 0 0-2 2v2h1.5V2a.5.5 0 0 1 .5-.5h2V0H2Zm2 10.5H2a.5.5 0 0 1-.5-.5V8H0v2a2 2 0 0 0 2 2h2v-1.5ZM8 12v-1.5h2a.5.5 0 0 0 .5-.5V8H12v2a2 2 0 0 1-2 2H8Zm2-12a2 2 0 0 1 2 2v2h-1.5V2a.5.5 0 0 0-.5-.5H8V0h2Z\" \/>\n\t\t\t<\/svg>\n\t\t<\/button><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">We ended up paying $160\/hour to the project manager vs. $150\/hour in the budget. Similarly, for the project manager we spent $120\/hour vs. the $100\/hour in the budget.<\/p>\n\n\n\n<h2 id=\"examples-budget-variance-types\" class=\"wp-block-heading\">Budget variance types (Examples)<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">To explain the variances, one can break it down into two components: Rate and Volume. Let\u2019s have a deeper look:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">1. Rate variance:<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">This reflects the difference between the actual cost or actual revenue per unit and the budgeted cost or revenue per unit. The formula for price variance is:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Rate variance Formula<\/strong> = (Actual Rate &#8211; Budgeted Rate) x Actual Time spent<\/p>\n\n\n\n<figure data-wp-context=\"{&quot;imageId&quot;:&quot;6a5a1500ba521&quot;}\" data-wp-interactive=\"core\/image\" data-wp-key=\"6a5a1500ba521\" class=\"wp-block-image aligncenter size-large wp-lightbox-container\"><img loading=\"lazy\" decoding=\"async\" width=\"700\" height=\"203\" data-wp-class--hide=\"state.isContentHidden\" data-wp-class--show=\"state.isContentVisible\" data-wp-init=\"callbacks.setButtonStyles\" data-wp-on--click=\"actions.showLightbox\" data-wp-on--load=\"callbacks.setButtonStyles\" data-wp-on--pointerdown=\"actions.preloadImage\" data-wp-on--pointerenter=\"actions.preloadImageWithDelay\" data-wp-on--pointerleave=\"actions.cancelPreload\" data-wp-on-window--resize=\"callbacks.setButtonStyles\" src=\"https:\/\/beebole.com\/blog\/wp-content\/uploads\/2023\/03\/rate-variance-using-rate-variance-formula-700x203.png\" alt=\"A table showing the actual price per hour versus what was budgeted.\" class=\"wp-image-10808\" title=\"\" srcset=\"https:\/\/beebole.com\/blog\/wp-content\/uploads\/2023\/03\/rate-variance-using-rate-variance-formula-700x203.png 700w, https:\/\/beebole.com\/blog\/wp-content\/uploads\/2023\/03\/rate-variance-using-rate-variance-formula-768x223.png 768w, https:\/\/beebole.com\/blog\/wp-content\/uploads\/2023\/03\/rate-variance-using-rate-variance-formula.png 823w\" sizes=\"auto, (max-width: 700px) 100vw, 700px\" \/><button\n\t\t\tclass=\"lightbox-trigger\"\n\t\t\ttype=\"button\"\n\t\t\taria-haspopup=\"dialog\"\n\t\t\tdata-wp-bind--aria-label=\"state.thisImage.triggerButtonAriaLabel\"\n\t\t\tdata-wp-init=\"callbacks.initTriggerButton\"\n\t\t\tdata-wp-on--click=\"actions.showLightbox\"\n\t\t\tdata-wp-style--right=\"state.thisImage.buttonRight\"\n\t\t\tdata-wp-style--top=\"state.thisImage.buttonTop\"\n\t\t>\n\t\t\t<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"12\" height=\"12\" fill=\"none\" viewBox=\"0 0 12 12\">\n\t\t\t\t<path fill=\"#fff\" d=\"M2 0a2 2 0 0 0-2 2v2h1.5V2a.5.5 0 0 1 .5-.5h2V0H2Zm2 10.5H2a.5.5 0 0 1-.5-.5V8H0v2a2 2 0 0 0 2 2h2v-1.5ZM8 12v-1.5h2a.5.5 0 0 0 .5-.5V8H12v2a2 2 0 0 1-2 2H8Zm2-12a2 2 0 0 1 2 2v2h-1.5V2a.5.5 0 0 0-.5-.5H8V0h2Z\" \/>\n\t\t\t<\/svg>\n\t\t<\/button><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\">2. <strong>Volume variance:<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">This reflects the difference between the actual time and the budgeted time. The formula for volume variance is:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Volume variance Formula<\/strong> = (Actual Time &#8211; Budgeted Time) x Budgeted Rate<\/p>\n\n\n\n<figure data-wp-context=\"{&quot;imageId&quot;:&quot;6a5a1500ba73b&quot;}\" data-wp-interactive=\"core\/image\" data-wp-key=\"6a5a1500ba73b\" class=\"wp-block-image aligncenter size-large wp-lightbox-container\"><img loading=\"lazy\" decoding=\"async\" width=\"700\" height=\"203\" data-wp-class--hide=\"state.isContentHidden\" data-wp-class--show=\"state.isContentVisible\" data-wp-init=\"callbacks.setButtonStyles\" data-wp-on--click=\"actions.showLightbox\" data-wp-on--load=\"callbacks.setButtonStyles\" data-wp-on--pointerdown=\"actions.preloadImage\" data-wp-on--pointerenter=\"actions.preloadImageWithDelay\" data-wp-on--pointerleave=\"actions.cancelPreload\" data-wp-on-window--resize=\"callbacks.setButtonStyles\" src=\"https:\/\/beebole.com\/blog\/wp-content\/uploads\/2023\/03\/volume-variance-formula-700x203.png\" alt=\"The volume variance formula shows the difference between actual time and budgeted time.\" class=\"wp-image-10812\" title=\"\" srcset=\"https:\/\/beebole.com\/blog\/wp-content\/uploads\/2023\/03\/volume-variance-formula-700x203.png 700w, https:\/\/beebole.com\/blog\/wp-content\/uploads\/2023\/03\/volume-variance-formula-768x223.png 768w, https:\/\/beebole.com\/blog\/wp-content\/uploads\/2023\/03\/volume-variance-formula.png 799w\" sizes=\"auto, (max-width: 700px) 100vw, 700px\" \/><button\n\t\t\tclass=\"lightbox-trigger\"\n\t\t\ttype=\"button\"\n\t\t\taria-haspopup=\"dialog\"\n\t\t\tdata-wp-bind--aria-label=\"state.thisImage.triggerButtonAriaLabel\"\n\t\t\tdata-wp-init=\"callbacks.initTriggerButton\"\n\t\t\tdata-wp-on--click=\"actions.showLightbox\"\n\t\t\tdata-wp-style--right=\"state.thisImage.buttonRight\"\n\t\t\tdata-wp-style--top=\"state.thisImage.buttonTop\"\n\t\t>\n\t\t\t<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"12\" height=\"12\" fill=\"none\" viewBox=\"0 0 12 12\">\n\t\t\t\t<path fill=\"#fff\" d=\"M2 0a2 2 0 0 0-2 2v2h1.5V2a.5.5 0 0 1 .5-.5h2V0H2Zm2 10.5H2a.5.5 0 0 1-.5-.5V8H0v2a2 2 0 0 0 2 2h2v-1.5ZM8 12v-1.5h2a.5.5 0 0 0 .5-.5V8H12v2a2 2 0 0 1-2 2H8Zm2-12a2 2 0 0 1 2 2v2h-1.5V2a.5.5 0 0 0-.5-.5H8V0h2Z\" \/>\n\t\t\t<\/svg>\n\t\t<\/button><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Of the $6,500 total variance, the difference of $2,450 results from a change in the rate ($\/hr). While the remaining $4,050 is the result of more time spent on the project.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Next let&#8217;s take a look at how to prepare a budget-to-actual variance analysis report.<\/p>\n\n\n\n<h2 id=\"best-practices-for-actual-vs-budget-variance-analysis-report\" class=\"wp-block-heading\">Best practice step-by-step guide to preparing a budget vs. actual variance analysis report<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A budget variance analysis report follows a standard structure, including the following:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>An introduction<\/li>\n\n\n\n<li>Budget vs. actuals report: A summary of the budget and actual results <\/li>\n\n\n\n<li>A breakdown of the variances <\/li>\n\n\n\n<li>Variance analysis in budgeting: Detailed analysis of the variance<\/li>\n\n\n\n<li>Recommendations for action <\/li>\n\n\n\n<li>Conclusion <\/li>\n\n\n\n<li>Appendix and Financial Statements<\/li>\n<\/ol>\n\n\n\n<h3 class=\"wp-block-heading\">Introduction<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Start your budget variance report with a brief introduction of the findings and its purpose. It should explain what the report is about and why it matters.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Budget vs. actual report: Summary of budget-to-actuals expenses<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The summary provides an overview of the budgeted amounts and the actual results.<\/p>\n\n\n\n<figure data-wp-context=\"{&quot;imageId&quot;:&quot;6a5a1500baa6e&quot;}\" data-wp-interactive=\"core\/image\" data-wp-key=\"6a5a1500baa6e\" class=\"wp-block-image aligncenter size-large wp-lightbox-container\"><img loading=\"lazy\" decoding=\"async\" width=\"700\" height=\"233\" data-wp-class--hide=\"state.isContentHidden\" data-wp-class--show=\"state.isContentVisible\" data-wp-init=\"callbacks.setButtonStyles\" data-wp-on--click=\"actions.showLightbox\" data-wp-on--load=\"callbacks.setButtonStyles\" data-wp-on--pointerdown=\"actions.preloadImage\" data-wp-on--pointerenter=\"actions.preloadImageWithDelay\" data-wp-on--pointerleave=\"actions.cancelPreload\" data-wp-on-window--resize=\"callbacks.setButtonStyles\" src=\"https:\/\/beebole.com\/blog\/wp-content\/uploads\/2023\/03\/example-of-budgets-vs.-actuals-report-summary-700x233.png\" alt=\"This table shows an example of a report summary you can include when doing a budget vs. actuals report\" class=\"wp-image-10805\" title=\"\" srcset=\"https:\/\/beebole.com\/blog\/wp-content\/uploads\/2023\/03\/example-of-budgets-vs.-actuals-report-summary-700x233.png 700w, https:\/\/beebole.com\/blog\/wp-content\/uploads\/2023\/03\/example-of-budgets-vs.-actuals-report-summary-768x256.png 768w, https:\/\/beebole.com\/blog\/wp-content\/uploads\/2023\/03\/example-of-budgets-vs.-actuals-report-summary.png 1104w\" sizes=\"auto, (max-width: 700px) 100vw, 700px\" \/><button\n\t\t\tclass=\"lightbox-trigger\"\n\t\t\ttype=\"button\"\n\t\t\taria-haspopup=\"dialog\"\n\t\t\tdata-wp-bind--aria-label=\"state.thisImage.triggerButtonAriaLabel\"\n\t\t\tdata-wp-init=\"callbacks.initTriggerButton\"\n\t\t\tdata-wp-on--click=\"actions.showLightbox\"\n\t\t\tdata-wp-style--right=\"state.thisImage.buttonRight\"\n\t\t\tdata-wp-style--top=\"state.thisImage.buttonTop\"\n\t\t>\n\t\t\t<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"12\" height=\"12\" fill=\"none\" viewBox=\"0 0 12 12\">\n\t\t\t\t<path fill=\"#fff\" d=\"M2 0a2 2 0 0 0-2 2v2h1.5V2a.5.5 0 0 1 .5-.5h2V0H2Zm2 10.5H2a.5.5 0 0 1-.5-.5V8H0v2a2 2 0 0 0 2 2h2v-1.5ZM8 12v-1.5h2a.5.5 0 0 0 .5-.5V8H12v2a2 2 0 0 1-2 2H8Zm2-12a2 2 0 0 1 2 2v2h-1.5V2a.5.5 0 0 0-.5-.5H8V0h2Z\" \/>\n\t\t\t<\/svg>\n\t\t<\/button><figcaption class=\"wp-element-caption\">This table shows an example of a report summary.<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">It includes the budget amount and actual expenses for each line item, as well as the percentage variances. We can use tables or graphs to present the information in a clear and concise way.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Variance breakdown<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">This section breaks down the variances into its components.<\/p>\n\n\n\n<figure data-wp-context=\"{&quot;imageId&quot;:&quot;6a5a1500bac90&quot;}\" data-wp-interactive=\"core\/image\" data-wp-key=\"6a5a1500bac90\" class=\"wp-block-image aligncenter size-large wp-lightbox-container\"><img loading=\"lazy\" decoding=\"async\" width=\"700\" height=\"420\" data-wp-class--hide=\"state.isContentHidden\" data-wp-class--show=\"state.isContentVisible\" data-wp-init=\"callbacks.setButtonStyles\" data-wp-on--click=\"actions.showLightbox\" data-wp-on--load=\"callbacks.setButtonStyles\" data-wp-on--pointerdown=\"actions.preloadImage\" data-wp-on--pointerenter=\"actions.preloadImageWithDelay\" data-wp-on--pointerleave=\"actions.cancelPreload\" data-wp-on-window--resize=\"callbacks.setButtonStyles\" src=\"https:\/\/beebole.com\/blog\/wp-content\/uploads\/2023\/03\/variance-breakdown-example-700x420.png\" alt=\"An example of how you can break down variances into various components\" class=\"wp-image-10811\" title=\"\" srcset=\"https:\/\/beebole.com\/blog\/wp-content\/uploads\/2023\/03\/variance-breakdown-example-700x420.png 700w, https:\/\/beebole.com\/blog\/wp-content\/uploads\/2023\/03\/variance-breakdown-example-768x461.png 768w, https:\/\/beebole.com\/blog\/wp-content\/uploads\/2023\/03\/variance-breakdown-example.png 812w\" sizes=\"auto, (max-width: 700px) 100vw, 700px\" \/><button\n\t\t\tclass=\"lightbox-trigger\"\n\t\t\ttype=\"button\"\n\t\t\taria-haspopup=\"dialog\"\n\t\t\tdata-wp-bind--aria-label=\"state.thisImage.triggerButtonAriaLabel\"\n\t\t\tdata-wp-init=\"callbacks.initTriggerButton\"\n\t\t\tdata-wp-on--click=\"actions.showLightbox\"\n\t\t\tdata-wp-style--right=\"state.thisImage.buttonRight\"\n\t\t\tdata-wp-style--top=\"state.thisImage.buttonTop\"\n\t\t>\n\t\t\t<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"12\" height=\"12\" fill=\"none\" viewBox=\"0 0 12 12\">\n\t\t\t\t<path fill=\"#fff\" d=\"M2 0a2 2 0 0 0-2 2v2h1.5V2a.5.5 0 0 1 .5-.5h2V0H2Zm2 10.5H2a.5.5 0 0 1-.5-.5V8H0v2a2 2 0 0 0 2 2h2v-1.5ZM8 12v-1.5h2a.5.5 0 0 0 .5-.5V8H12v2a2 2 0 0 1-2 2H8Zm2-12a2 2 0 0 1 2 2v2h-1.5V2a.5.5 0 0 0-.5-.5H8V0h2Z\" \/>\n\t\t\t<\/svg>\n\t\t<\/button><figcaption class=\"wp-element-caption\"><em>SOURCE<\/em>: <a href=\"https:\/\/slideplayer.com\/slide\/13428402\/\" target=\"_blank\" rel=\"noopener\">Fundamentals of Cost Accounting, 4th edition Lanen\/Anderson\/Maher<\/a><\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">This could be price variance, quantity variance, mix variance, and volume variance. Again, try using tables or graphs to present the information.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Variance analysis in budgeting: Budget variance analysis<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Here we analyze the variance to identify the factors that contributed to the difference. We also determine the reasons for the variance, like whether the variance is favorable budget variance or unfavorable budget variance. Provide supporting evidence and examples to illustrate your analysis.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Recommendations for action<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Based on the analysis, we can provide recommendations for action to address the variances. This is a chance to identify specific actions that can be taken to improve performance or specify anything else that can be done to achieve better results in the future. We explain how each recommendation can close the gap between budgeted and actual amounts.<\/p>\n\n\n\n<h2 id=\"beebole-reporting\" class=\"wp-block-heading\">How Beebole can help with reporting and analysis<\/h2>\n\n\n\n    <div class=\"bbl-testimonials set_testimonials-block\">\n                    <div class=\"item\">\n                <div class=\"item-text\">Beebole&#8217;s Google Sheets integration is the winner for us. I love that you can easily integrate with Sheets; it makes my reporting an absolute breeze. Two clicks and the latest data is imported and ready for interrogation; it makes Beebole a really powerful tool.<\/div>\n                <div class=\"item-author\">\n                    Sarah G.                                            ,                         <span class=\"position-company\">\n                            Operations director                                                             at                                                         Ostmodern                        <\/span>\n                                    <\/div>\n            <\/div>\n                    <div class=\"item\">\n                <div class=\"item-text\">I generate several reports to look at timesheet data and easily export them to Excel.<\/div>\n                <div class=\"item-author\">\n                    Robert P.                                            ,                         <span class=\"position-company\">\n                            Bookkeeper                                                             at                                                         Apex Analytics                        <\/span>\n                                    <\/div>\n            <\/div>\n                    <div class=\"item\">\n                <div class=\"item-text\">I can&#8217;t say enough about how easy and effective Beebole is for tracking time on projects. It is incredibly powerful yet simple to use. No one wants a &#8220;solution&#8221; that takes more time than the time-saving it is supposed to provide. For tracking projects and different scopes within a project, this is the easiest and most efficient use of my time. It gives us accurate and detailed information to include with client billing.<\/div>\n                <div class=\"item-author\">\n                    Philip N.                                            ,                         <span class=\"position-company\">\n                            Owner                                                             at                                                         Philip Neumann Energy Design                        <\/span>\n                                    <\/div>\n            <\/div>\n            <\/div>\n\n\n\n<h3 class=\"wp-block-heading\">Conclusion<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Finally, here we summarize the key points of the report. Also, we emphasize the importance of taking action to improve performance. And provide a clear call to action and encourage stakeholders to implement the recommendations.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Appendices<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">These include any supporting information, such as tables, graphs, or detailed calculations and financial statements. It specifies instructions on how often to run a budget-to-actuals report, and it also shares guidelines and tips on budget vs. actuals: how to control variance.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The appendices should be well-organized and easy to understand. When writing the report, we must keep in mind the audience and their expertise level. We should also use clear and concise language, and avoid technical jargon (unless it is absolutely necessary.) Don\u2019t forget that the use of visuals, such as tables and graphs, helps explain complex information. Finally, proofread the report carefully to ensure it is error-free and well-structured.<\/p>\n\n\n\n<h2 id=\"conclusion\" class=\"wp-block-heading\">Final thoughts on budget-to-actuals variance analysis<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">We hope that after reading this article you feel well-versed in the differences between budgets and actuals, and what a budget vs. actual variance is. Furthermore, we hope you can take that information and not only understand when it\u2019s favorable and unfavorable variances. But how to present this information to stakeholders, finance teams, and more. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Budget-to-actual analysis is a critical aspect of the project management team. It helps project managers assess the financial viability of their projects and control fixed costs and variable costs by monitoring and analyzing expense variances between actual and budgeted costs. When done properly and efficiently, project managers can identify inefficiencies, make necessary adjustments, and ensure project success.<\/p>\n\n\n\n<div  class=\"mx-auto bbl_suggested_post_block my-5\">\n\t<a class=\"bbl_sp_block-blockcontent align-items-center d-flex flex-column flex-md-row justify-content-center\" href=\"https:\/\/beebole.com\/blog\/budget-vs-actuals-template-microsoft-excel\" title=\"Mastering budget vs. actuals analysis: Excel Power Query tutorial + FREE template\">\n\t\t<img\n\t\t\talt=\"Mastering budget vs. actuals analysis: Excel Power Query tutorial + FREE template\"\n\t\t\tclass=\"d-block h-auto\"\n\t\t\tloading=\"lazy\"\n\t\t\theight=\"153\"\n\t\t\tsrc=\"https:\/\/beebole.com\/blog\/wp-content\/themes\/sage\/public\/images\/suggested-post.cad3bf.png\"\n\t\t\twidth=\"233\"\n\t\t\/>\n\t\t<div class=\"bbl_sp_block-text-col\">\n\t\t\t\t\t\t\t<div class=\"mb-1\"><div class=\"bbl_sp_block-label mb-3\">RELATED POST<\/div><\/div>\n\t\t\t\t\t\t<div class=\"bbl_sp_block-title\">Mastering budget vs. actuals analysis: Excel Power Query tutorial + FREE template<\/div>\n\t\t\t\t\t\t\t<div class=\"bbl_sp_block-button mt-3\">\n\t\t\t\t\tRead more\t\t\t\t\t<svg width=\"14\" height=\"14\" viewBox=\"0 0 14 14\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n\t\t\t\t\t\t<path d=\"M5.25 10.5L8.75 7L5.25 3.5\" stroke=\"white\" stroke-width=\"1.16667\" stroke-linecap=\"round\" stroke-linejoin=\"round\" \/>\n\t\t\t\t\t<\/svg>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/a>\n<\/div>\n\n\n<p class=\"wp-block-paragraph\">\u2014<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Photo by firmbee.com on Unsplash<\/p>\n<div class=\"bbl-post-disclaimer\">The experts who have written or contributed to this article are independent from Beebole, and their contribution doesn't serve as endorsement for our company\/tool or their past\/present organizations, employers, or associates.<\/div>","protected":false},"excerpt":{"rendered":"<p>To deliver a product or service within a specified time and budget, you have to juggle a variety of activities, responsibilities, and stakeholders. Estimating the project&#8217;s cost and keeping tabs on actual spending are two crucial aspects for project managers. Budget-to-actual variance analysis is the comparison of the budgeted and the actual cost of the [&hellip;]<\/p>\n","protected":false},"author":50,"featured_media":14743,"comment_status":"open","ping_status":"open","sticky":true,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4011],"tags":[1468],"class_list":["post-10815","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-project-management","tag-finance"],"acf":[],"_links":{"self":[{"href":"https:\/\/beebole.com\/blog\/wp-json\/wp\/v2\/posts\/10815","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/beebole.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/beebole.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/beebole.com\/blog\/wp-json\/wp\/v2\/users\/50"}],"replies":[{"embeddable":true,"href":"https:\/\/beebole.com\/blog\/wp-json\/wp\/v2\/comments?post=10815"}],"version-history":[{"count":69,"href":"https:\/\/beebole.com\/blog\/wp-json\/wp\/v2\/posts\/10815\/revisions"}],"predecessor-version":[{"id":14782,"href":"https:\/\/beebole.com\/blog\/wp-json\/wp\/v2\/posts\/10815\/revisions\/14782"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/beebole.com\/blog\/wp-json\/wp\/v2\/media\/14743"}],"wp:attachment":[{"href":"https:\/\/beebole.com\/blog\/wp-json\/wp\/v2\/media?parent=10815"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/beebole.com\/blog\/wp-json\/wp\/v2\/categories?post=10815"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/beebole.com\/blog\/wp-json\/wp\/v2\/tags?post=10815"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}