Journal voucher: recording adjustments your auditor can follow
A journal voucher documents a manual accounting entry — what was posted, why, and who approved it. What it must contain, when you need one, and the controls that stop errors.
Knowing you missed the number by fifteen per cent is not information. Variance analysis splits that miss into price, volume and mix — and each of the three implies a different action.
Variance analysis is the practice of decomposing the difference between what you expected and what happened into its causes. A month that came in fifteen per cent under plan tells you only that something went wrong. The same month split into price, volume and mix tells you which lever moved, and therefore what to do — and those are three different conversations with three different people.
The habit it replaces is the one where somebody explains the month narratively — it was quiet, the big customer went slow — and everybody nods. Sometimes that story is right. Variance analysis is how you find out.
Favourable variances deserve the same examination as adverse ones, and almost never get it. A month that beat plan because a customer ordered early has not beaten plan — it has borrowed from next month, and next month will look like a problem that needs solving. Unexamined good news is how businesses respond to a phantom decline by cutting something that was working.
Variance analysis is the analytical half of the monthly pack described in management accounts, and it needs a plan to compare against — the forecast side is covered in financial projections template. Ettex Books provides the actuals, and the decomposition itself belongs in Ettex Sheets, where the split into price, volume and mix stays visible rather than being asserted.
The simpler monthly comparison that most small businesses should start with, before decomposing anything, is covered in budget vs actual.
Splitting the difference between plan and actual into its causes — typically price, volume and mix — so that each part points to a specific action.
The effect of selling a different combination of products than planned. It is why revenue can meet target while margin misses, and it is the variance most often missed.
Yes. A beat caused by an order pulled forward is not a beat, and treating it as one produces a false problem next month.
Set a threshold in money rather than percentage, sized so that a handful of items get examined each month rather than everything or nothing.
A journal voucher documents a manual accounting entry — what was posted, why, and who approved it. What it must contain, when you need one, and the controls that stop errors.
Consolidated accounts present a group as one entity. Who must prepare them, what gets eliminated, and the reconciliations that decide how long it takes.
Fund accounting tracks money by the restrictions attached to it. Who needs it, how restricted funds work, and the reporting it makes possible.