Organisations are required to ensure that there is sufficient control over its spend in line with approved budgets. Variances to budgets can arise for a variety of reasons including lack of monthly reconciliation processes to ensure all costs are accurately captured. Such variances can then have a consequence on cash flows and covenant compliance. We have worked with a number of clients to identify how budgetary variances have incurred including the accuracy of the management accounts and forecasts back to supporting documentation. This has allowed these clients to have greater budgetary control over spend going forward.
