Google Sheets Formula for Daily Budget Tracking

Overview

To create a budget that is automatically updated with daily entries, you will need to set up a Google Sheets formula that compares actual expenses against the budgeted amounts. This will allow you to track whether you are within your budget or exceeding it.

Formula Explanation

The following formula will compute the difference between your budgeted amounts and the actual expenses recorded daily. This way, you can see if you have met, exceeded, or are under budget.

Example Setup

1. Columns Setup:

   • Column A: Date
   • Column B: Budget Amount
   • Column C: Actual Amount
   • Column D: Variance (this will be computed)

2. Assumptions:

   • You have budgeted amounts in cells B2:B31 (representing 30 days).
   • Actual amounts are input into cells C2:C31 (daily entries).
   • You will calculate the variance in Column D.

Example Formula

In cell D2, input the following formula:

=B2-C2

Apply to Multiple Rows

To apply this for multiple rows (days), you can drag the fill handle from D2 down to D31. This will automatically adjust the references for each day (e.g., D3 will contain =B3-C3).

Complete Steps

1. Create Google Sheet with headings in Row 1:

   • A1: "Date"
   • B1: "Budget"
   • C1: "Actual"
   • D1: "Variance"

2. Input Data:

   • Fill A2:A31 with the respective dates.
   • Fill B2:B31 with your budgeted amounts for each day.
   • Enter daily actual expenses in C2:C31 as they are incurred.

3. Variance Calculation:

   • Enter the formula in D2 and drag down to D31.

Result Interpretation

• Positive Value in Variance (Column D): indicates you are under budget.
• Negative Value in Variance: indicates you have exceeded the budget.

Additional Considerations

• Conditional Formatting: You may want to apply conditional formatting to Column D to quickly visualize under or over budget situations (e.g., green for positive, red for negative).
• SUM Functions: To calculate total budgets, actuals, and variance across the month, you can use:
  • Total Budget: =SUM(B2:B31)
  • Total Actual: =SUM(C2:C31)
  • Total Variance: =SUM(D2:D31)

Conclusion

This setup allows for efficient daily tracking of your budget versus actual expenses within Google Sheets, providing clear visibility into your financial management. For further learning on advanced budgeting and data analysis techniques, consider exploring courses on the Enterprise DNA Platform.