Actuals

What are Actuals?

Actuals in accounting refer to actual financial results or transactions that have taken place. In other words, actuals represent the actual income, expenses, and other financial transactions that have occurred, as opposed to budgeted or forecasted amounts.

For example, if a company has budgeted to spend £50,000 on marketing expenses in a given month, the actual marketing expenses incurred for that month would be considered the actuals. If the actual marketing expenses turn out to be £48,000, then the actuals are £48,000 and the budget was not met.

Information for Actuals

To calculate actuals, you will need the following information:|

1. Financial statements: This includes the income statement, balance sheet, and cash flow statement, which provide a record of all financial transactions.
   
   

2. Bank statements: This provides a record of all transactions processed through the company's bank accounts, including deposits, withdrawals, and other transactions.
   
   

3. Invoices: This includes all invoices for goods and services that have been purchased, which are essential for calculating actual expenses.
   
   

4. Receipts: This includes all receipts for goods and services that have been sold, which are essential for calculating actual revenue.

5. Time tracking records: If the company operates on an hourly basis, time tracking records can be used to calculate actual labor costs.

6. Payroll records: This includes all payroll records, including employee salaries and benefits, which are essential for calculating actual labor costs.
   
   

By gathering this information and calculating actual amounts, you can determine the actual financial performance of a company, which is essential for decision making and planning.

Calculate Actuals

To calculate actuals, you can follow these steps:

1. Gather financial information: Collect all relevant financial information, such as financial statements, bank statements, invoices, receipts, time tracking records, and payroll records.
   
   

2. Review financial statements: Review the income statement, balance sheet, and cash flow statement to ensure that all financial transactions are recorded accurately.
   
   

3. Calculate actual revenue: Use the receipts for goods and services that have been sold to calculate the actual revenue for a given period.
   
   

4. Calculate actual expenses: Use invoices for goods and services that have been purchased, as well as payroll records, to calculate the actual expenses for a given period.
   
   

5. Compare actuals to budget or forecast: Compare the actual revenue and expenses to the budgeted or forecasted amounts to determine how well the company performed in a given period.
   
   

6. Record the actuals: Document the actual revenue and expenses in your financial records to provide an accurate record of the company's financial performance.
   
   

By following these steps, you can calculate the actual financial performance of a company, which is essential for decision making and planning.

Check for Differences

To check differences in actuals, you can follow these steps:

1. Compare actual results to budget or forecast: Compare the actual revenue and expenses to the budgeted or forecasted amounts to determine any differences.
   
   

2. Investigate the cause of differences: If there are differences, investigate the cause by reviewing the financial records, bank statements, invoices, and receipts.
   
   

3. Make necessary adjustments: If the differences are due to errors in the financial records, make the necessary adjustments to correct them.
   
   

4. Reconcile accounts: Reconcile the accounts by ensuring that all transactions have been recorded correctly and that the balances match the bank statements.
   
   

5. Document the differences: Document any differences and the steps taken to resolve them to provide an accurate record of the company's financial performance.
   
   

By following these steps, you can identify and resolve any differences in the actual financial performance of a company. This is essential for ensuring the accuracy of the financial records and for making informed decisions about the future of the business.