What are the best practices for tracking expenses during a budget revision?

1 Use a budget tracking tool

A budget tracking tool can help you monitor your expenses and compare them with your original and revised budget. You can use a spreadsheet, a software, or an online platform that suits your needs and preferences. A budget tracking tool should allow you to enter your expenses, categorize them by budget line items, and generate reports and charts. You should update your budget tracking tool regularly and reconcile it with your bank statements and receipts.

2 Follow the grantor's guidelines

Before you submit a budget revision, you should review the grantor's guidelines and requirements. Some grantors may have specific rules or limits on how much you can change your budget, what types of expenses are allowable or unallowable, and how you should document and report your expenses. You should follow the grantor's guidelines and communicate with them if you have any questions or issues. You should also keep a copy of the approved budget revision and any correspondence with the grantor for your records.

3 Review your expenses for accuracy and eligibility

As you track your expenses, you should review them for accuracy and eligibility. You should check that your expenses are correctly recorded, calculated, and allocated. You should also verify that your expenses are eligible for the grant and match the budget line items. If you find any errors or discrepancies, you should correct them as soon as possible and document the reasons for the changes. You should also keep all the receipts, invoices, and other supporting documents for your expenses.

4 Analyze your budget performance

Tracking your expenses can help you analyze your budget performance and identify any issues or opportunities. You should compare your actual expenses with your original and revised budget and calculate the variance and percentage of spending. You should also evaluate how your expenses relate to your project goals, outputs, and outcomes. You should use your budget performance analysis to inform your decision-making, planning, and reporting.

5 Share your budget information with stakeholders

Tracking your expenses can also help you share your budget information with stakeholders, such as your team, partners, beneficiaries, and grantor. You should communicate your budget information in a clear, concise, and timely manner. You should use appropriate formats, such as tables, graphs, or narratives, to present your budget information. You should also explain the reasons for your budget revision, the impact of your expenses on your project, and any challenges or lessons learned.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?