Glossary
Financial Reporting

Budget‑to‑Actual Report

By: Alec Hollingsworth
Updated:  
June 2, 2025

DEFINITION:

A Budget-to-Actual Report compares an organization’s planned budget to its actual financial results, highlighting variances over a set period.
A Budget-to-Actual Report is a financial statement that compares an organization’s projected budget amounts to actual financial results over a specific period. By displaying both the planned and actual income and expenses side by side, this report helps nonprofits identify variances—areas where performance exceeded or fell short of expectations. Regular review of budget-to-actual reports enables organizations to monitor financial health, adjust spending, and make informed decisions. This report is a crucial tool for leadership, boards, and grant funders to evaluate the effectiveness of financial planning and stewardship.

Key Takeaways

  • Compares budgeted and actual financial data
  • Highlights variances for better decision-making
  • Supports financial transparency and accountability
  • Essential for nonprofit management and reporting

Why It Matters

It helps nonprofits monitor financial performance, control spending, and ensure accountability to stakeholders.

Real World Example

Imagine a nonprofit budgeted $50,000 for fundraising events during the year, but the actual expenses totaled $60,000. The Budget-to-Actual Report would display a $10,000 unfavorable variance. This insight prompts staff and board members to investigate the reasons for overspending and adjust future budgets or spending. Conversely, if actual expenses were $45,000, the $5,000 positive variance could indicate cost savings or underinvestment. Such reports guide leadership in making timely, strategic decisions to ensure the organization’s resources are used effectively and responsibly.

How Aplos Helps

In Aplos, users can easily generate Budget-to-Actual Reports to track organizational performance against budgeted expectations. The platform allows for flexible reporting by fund, department, or project, enabling nonprofits to quickly spot trends and make data-driven adjustments for better financial management.
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Frequently Asked Questions

What is the purpose of a Budget-to-Actual Report?

It helps organizations compare their planned budget to actual financial outcomes, identifying variances for better financial management.

How often should nonprofits review these reports?

Nonprofits should review Budget-to-Actual Reports monthly or quarterly to stay on top of financial trends and make timely adjustments.

Can Aplos generate Budget-to-Actual Reports?

Yes, Aplos enables users to easily create and customize Budget-to-Actual Reports for funds, departments, or projects.

Related Terms

Pledge
Accrual Basis
Statement of Activities
Project Tracking
Mission Trip Fund
Board‑Designated Fund

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