Most budget-vs-actual reports compare the wrong two numbers. Budget minus spent tells you what's gone — not what's coming.
The column everyone forgets
Committed costs. Signed purchase orders and subcontracts are money you've already promised, even if no invoice has arrived. A report without committed costs always looks healthier than the job really is.
The honest report
- Budget — what you planned
- Committed — what you've promised
- Actual — what you've been billed
- Projected at completion — committed plus actuals plus estimate to finish
Keep it live
When change orders update the budget the day they're approved, variance stops being a surprise at month end.
