Budgeting

6. Actual Sales

Your budget is only an educated guess about the future. But once you have started trading, comparing your actual monthly sales and costs with the budget will let you know what is really happening. Begin with sales.

6.1 Was turnover lower than budget? Why?

• If prices or volumes were lower, why? Are prices or volumes likely to be lower than forecast in future months, too?

6.2 If turnover was higher than budget, why?

• Were sales brought forward from future months?
• Was the increase in sales caused by large one-off orders?

6.3 Were sales of any individual product lines significantly different from forecast levels?

• Is one product becoming outdated?
• Is another product growing more popular?
• Do you need to focus your marketing or production plans on different products?