FP&A for Startups: Budget vs Actual Analysis
Written by Harry Prabandham
Curated by Rubric Financial
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Setting Up Budget vs Actual Reporting
- Start with an approved annual budget broken down by month: revenue, COGS, and operating expenses by department (Engineering, Sales, Marketing, G&A)
- Each month, compare actuals to budget at the line-item level and calculate both dollar variance and percentage variance
- Flag material variances (typically >10% or >$10K) for investigation. Not every variance needs explanation, but the big ones do
- Use a consistent template month over month so trends become visible and the board can track performance against plan over time
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About the author
Harry PrabandhamFounder & CEO
Founder and CEO of StartupCFO. MBA from Wharton, MS in Computer Science, and decades of experience building and advising venture-backed startups.
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