Guides › Finance & Accounting
Explain why actual costs differ from the budget
Turn a budget-versus-actual table into clear, short commentary managers understand, with questions to confirm before it goes out.
When to use it
Each month after the books close
Step by step
Export budget versus actual
Export a report from your accounting or budgeting tool showing budget, actual and variance for each line for the month and year to date.
Add what you already know
Jot down known reasons for big differences, such as a delayed project or a one-off repair. The AI writes better commentary when it has the real story.
Draft the commentary
Attach the report to your AI assistant and use this prompt.
Prompt to copyHere is the budget versus actual report for [department / company] for [month], plus my notes on known reasons. Write variance commentary for managers who aren't accountants. Include: 1) A three-sentence headline on overall performance. 2) A table of the lines that differ by more than [10]% or [£2,000]: Line | Budget | Actual | Variance | Likely reason | Timing or permanent? 3) Lines where I haven't given a reason, marked [ASK]. Use plain English, no jargon, and don't speculate beyond my notes. My notes: [paste]Confirm the reasons
Check each reason with the budget holder, especially any marked [ASK]. Change anything that isn't right before you send it.
Send it with the report
Paste the final commentary into Word or your report pack next to the figures.
What you get
Headline: Spending was £14,200 under budget for October, mostly timing. Marketing £6,000 under (campaign moved to November, timing). Repairs £3,400 over (emergency roof repair, permanent). IT software £1,900 over [ASK].
Tips
- Ask for a short version for a slide and a longer one for the finance pack from the same chat.
- Don't paste client personal data, full account numbers or payroll details into a public AI tool unless your organisation allows it. Use your work-approved assistant if you have one.