(Answered) : Q63 What is a Quarterly Budget Analysis? [1 Mark]

Q63

What is a Quarterly Budget Analysis? [1 Mark]

Expert Answer

A quarterly budget analysis is the financial analysis tool that is used to compare your projected cash flow statement with your business’s actual performance. Its purpose is to show you whether or not you are operating within your projections and to help you maintain control of all phases of your business operations. When your analysis shows that you are over or under budget in any area, it will be necessary to determine the reason for the deviation and implement changes that will enable you to get back on track.