PRESENTING ANALYSED CASH BOOK INFORMATION IN A GRAPH
KNOW? Many
Did You
banks provide budgeting software and spending
analysis graphs as part of their online banking options.
€760
Presenting the information from an analysed cash book in a visual form can provide a clear picture of any patterns in the account.
For example, consider the information from the McDermott family’s credit side analysis columns presented in a pie chart.
Pie Chart Showing the McDermott Household Expenses November 2016 €20
€210 €70
Other
Groceries Car expenses Household bills
This pie chart shows, at a glance, how the McDermott family spent money in November.
• The highest expenditure was on household bills. • The lowest expenditure was on other outgoings.
If the family want to reduce spending in future, they should look at ways of reducing their household bills.
Presenting analysed cash book information in a graph A
Go to page 49 of your Activities and Accounts Book to present the information from an analysed cash book in a graph.
BUDGET COMPARISON STATEMENTS
When the analysed cash book for a period is complete, the actual income and expenditure figures it contains should be compared to the planned figures in the budget for the same period.
Looking at the two sets of information together will show a household if its budget is realistic or if it needs to be revised to reflect the household’s actual finances.
A budget comparison statement makes it easy to compare budgeted and actual figures. The difference between planned and actual income and expenditure is calculated by subtracting the budgeted figures from the actual figures.
Difference = actual income and expenditure – budgeted income and expenditure
