Budgets and Variance

Budgets in Udyot let you set a plan for income and expenses, then compare it to what actually happened — so you can spot overspending early and hold your business to its targets.

Before you begin

Open Budgeting → Budgets. You set budgets per ledger for a fiscal year.

Creating and locking a budget — step by step

1. New budget: Choose the fiscal year and add a budgeted amount for each income and expense ledger.
2. Lock it: Locking makes the budget the official plan to measure against and stamps who locked it and when.
3. Track variance: As you trade, the Variance report compares actual to budget per ledger.
4. Close it at year-end.

Reading the variance

Udyot applies the right sign for you: for income, beating the budget is favourable; for expenses, spending less than budget is favourable. Each line is flagged favourable, on-target (within 5%), or unfavourable, and rows are sorted by the biggest deviation so problem areas surface first.

Tips & common questions

Can I budget per branch? Combine budgets with cost centres to plan and review by segment.

Related: Financial Reports, Closing the Financial Year.