Understanding Budgeted versus Actual Expenses

Remarkably offers users the opportunity to track budgeted as well as actual expenses as part of its Channel Analysis reporting.

The intent of offering users both budgeted versus actual is to account for how different teams project and track expenses. Additionally, Remarkably aims to offer the option for maximized efficiency via leveraging budgeted expenses that typically are set for a year and don’t change and therefore can serve as good leading indicators with the option for maximized accuracy via true actuals that are typically captured monthly and are lagging indicators.

To learn more please read the following:

• Budgeted values reflect marketers’ planned investments for the year, possibly adjusted each quarter
• Actual values reflect marketers’ actual costs as invoiced by their vendors – likely slightly different from budgeted values when, for example, pay for performance-based vendors and channels underperform when compared to budget/plan, unexpected savings are captured via scope reduction or special offers, or when SEO consultants go on vacation for a week and don’t bill all their hours.
• The purpose of displaying both budgeted and actual values is to provide marketers with the opportunity to:
  • Identify deltas between budgeted and actual costs during a specific time period across all paid sources. For example, a marketer may see that their budgeted expenses for all paid sources were $1500 higher than actual expenses in Q4 2021, demonstrating $500 in savings over plan.
  • Identify deltas between budgeted and actual costs during a specific time period for a single paid source. For example, a marketer may see that their budgeted expense for ApartmentList in February 2022 is $200 and actual expenses came in at $300 Q4 2021, identifying a $100 variance they may need to account for in March or Q2 2022.
  • Long term, the goal is to help markers identify any financial risks and opportunities across paid marketing and advertising efforts, and to help them create the most informed and accurate budgets possible.