Build a Budget vs Actuals Model
This guide explains how to create a Budget vs Actuals view in Model Reef by treating the budget and the actuals as separate models and comparing their outputs.
Model Reef focuses on generating clean forward budgets and importing actuals. Comparison is done across models rather than storing multiple states inside a single model.
Before you start
You should have:
A budget model representing your planned financial year or period.
An actuals model linked to your accounting system, or a model populated with historical results via import.
A clear mapping between budget categories and actual accounts.
If you do not have a budget yet, build one with your chosen planning guides first.
What you will build
A Budget model containing planned revenue, costs, capex and funding.
An Actuals model containing realised results.
A comparison view for key metrics such as:
Revenue.
Gross margin.
EBITDA.
Cash and debt.
A process for updating the Actuals model as new data arrives.
Prepare the Budget model
Your Budget model should:
Represent the full planning period (for example a financial year).
Include all expected revenue streams.
Include detailed cost, staffing and capex plans.
Reflect initial capital structure.
Name it clearly, for example Company - Budget FY25.
Make sure budget assumptions are documented within the model so you can interpret variances later.
Prepare the Actuals model
Your Actuals model should:
Connect to your accounting system (for example Xero or QuickBooks) or use imported historicals.
Map chart of accounts to appropriate types and categories.
Reflect actual results for the same period you plan in the Budget model.
Name it clearly, for example Company - Actuals FY25. You will refresh this model as new periods are closed.
Ensure structural alignment between Budget and Actuals models
For a meaningful comparison:
Use a similar branch structure in both models, or at least align the top level entity.
Use consistent categories and naming where possible.
Align model periodicity and fiscal year settings.
Perfect alignment is not required, but the closer the structures, the easier it is to interpret differences.
Extract key metrics from both models
For each model, record key outputs at matching granularity, for example monthly or quarterly:
Revenue by major line.
COGS and gross profit.
Opex and staff costs.
EBITDA.
Cashflow from operations.
Capex.
Closing cash and debt.
Export or copy these series into a comparison sheet or summary document.
Build Budget vs Actuals tables and charts
Using the extracted series, create:
Tables that show, for each period and category:
Budget.
Actual.
Variance (Actual minus Budget).
Variance percentage.
Charts for:
Revenue Budget vs Actuals.
EBITDA Budget vs Actuals.
Cash Budget vs Actuals.
This builds a clear view of where performance is ahead of or behind plan.
Interpret variances and feed back into planning
Use the Budget vs Actuals comparison to:
Identify which drivers were mis estimated:
Volume.
Price.
Cost per unit.
Timing of revenue or costs.
Decide whether to:
Update the budget model mid year.
Adjust future period assumptions.
Re calibrate next year planning.
Model Reef provides the engine for budget and actuals; the comparison and interpretation are often done in reports or external tools.
Check your work
Budget and Actuals models cover the same periods and use consistent definitions.
Variances are calculated using the same sign convention for all categories.
The comparisons highlight real performance differences, not mapping issues.
Insights from variances are fed back into the planning process.
Troubleshooting
Related guides
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