Introduction to budgets
Budgets are extremely useful for estimating the future financial performance of the business. You can use a budget to set a plan for the future, and compare current results against budget for performance measurement.
We highly recommend importing a budget for each company in Fathom to get the most insight into your business performance.
You are able to import an external budget from your source accounting system into Fathom. This includes:
You can also choose to import a budget via Excel at any time. This is useful if you use other forecasting tools for creating your budgets, or if you are importing your financial data from Excel, QuickBooks Desktop, or MYOB AccountRight.
Using your budgets in Fathom
You can use budgets in a number of different ways within Fathom.
Easily set targets for financial KPIs
In 'Step 5 - Targets' of the company settings, Fathom allows you to set targets for your KPIs. If you have any active default KPIs (ie. KPIs that draw data from the P&L or Balance Sheet), you can choose to automatically use your imported budget figures as targets.
Perform 'Budget vs Actual' variance analysis
Importing a budget allows you to compare your actual results against your budget figures. Some examples of where you can use this within Fathom include (but are not limited to):
- Add your budget as a comparative trend line in our Trend analysis tool, or for Trend charts in reports.
- View 'Actuals vs Budget' variance columns in our Financials analysis tool, or in financial tables in reports.
Perform forward projections
Combine your actual and budget results to create a projection of the entire financial year. This is available for:
Can I create a budget within Fathom?
Fathom does not have a dedicated budgeting/forecasting feature at this time - we are only able to import an external budget.
How many budgets can I import?
You can only have a single budget imported for a company in Fathom at any given time.
Can I import a budget for a division/tracking category/class/job?
Budgets can only be imported for individual entities in Fathom.
If you wish to add a budget for a division, you will first need to import the division as a standalone entity in Fathom. Note that this would then be considered as a separate entity for billing purposes.
More information on this process is in the following help article: Adding Budgets for Divisions
Can I import a budget for a consolidated group?
Right now, you're not able to directly import a budget for the consolidated group.
Fathom will automatically 'roll up' the budgets of each underlying entity within the group. This will then will be available to use in the consolidated group.
If you wish to apply a budget directly to the consolidated group, a workaround would be to import that budget directly for an underlying company, and remove budgets for any other underlying companies. This budget will then flow through into the consolidation.