Daniels BudgetWorks Advisory · Sample Work
Budget vs. actual report
A clear explanation of a $264,000 earnings shortfall, with a traceable variance bridge and an AI-assisted management review.
Illustrative sample · Fictional business data · No client information
Operating performance
| Line item | Budget | Actual | Profit impact |
|---|---|---|---|
| Revenue | 6,600 | 6,420 | (180) U |
| Cost of goods sold | 4,026 | 4,050 | (24) U |
| Gross profit | 2,574 | 2,370 | (204) U |
| Payroll & benefits | 1,280 | 1,320 | (40) U |
| Other operating expenses | 620 | 640 | (20) U |
| EBITDA | 674 | 410 | (264) U |
Gross profit and EBITDA are subtotals. Do not add their variances to the individual expense and revenue variances.
From planned earnings to actual earnings
The direct bridge above holds each reported line at its budget amount. To separate sales scale from gross-margin performance, apply the planned 39% gross margin to the $180k sales shortfall: $70.2k of lost gross profit. The remaining $133.8k gross-profit gap comes from the aggregate margin-rate difference; product mix, price, and unit costs are possible explanations to investigate.
From a flagged pattern to a management action
Prepared example of an AI-assisted review. The observations below are tied to the fictional report. This is a fixed demonstration, not a live AI service.
1. Observation supported by the data
Sales are 2.7% below plan, while EBITDA is 39.2% below plan. Cost of goods sold is $24k over plan despite lower revenue.
2. Hypothesis to investigate
Lower-margin sales mix, discounting, supplier increases, or inventory adjustments could explain part of the margin gap. The summary report alone cannot identify which.
3. Review and validation
Check invoice-level pricing, SKU margins, purchase-price changes, returns, and inventory adjustments. Reconcile payroll and overhead to the ledger before concluding that costs are structural.
4. Decision and follow-through
Finance and operations review the top 20 margin exceptions within 10 business days. Assign corrective actions and track gross margin against the 39% reference each month.
Action register
| Action | Accountable role | Timing | Measure |
|---|---|---|---|
| Investigate margin exceptions | Finance + Sales | 10 business days | Gross margin |
| Reconcile overtime and vacancies | Operations | Next close | Payroll vs. plan |
| Review discretionary spending | Department leads | 30 days | Overhead vs. plan |
Put this kind of analysis to work.
Discuss the financial questions, reporting gaps, or planning decisions facing your organization.