Three figures that answer different questions
The budget describes what you expected to spend. Commitments capture purchases or work already agreed. Actual costs reflect what has been recorded under your company’s rules. Looking only at invoices can leave out materials awaiting invoicing or contracted work that has not yet been carried out.
Agree on a common cost structure
Define how work sections and cost items are organised, and apply the same approach to purchasing, work reports and accounting. If each team uses different categories, comparing figures requires manual reclassification. Start with a structure that the team can maintain consistently.
Review variances in context
A difference does not always mean a project is going badly. It may reflect the timing of a record, an approved change or an incorrect allocation. The report should let you trace back to the source document and distinguish these situations before drawing conclusions.
Make reporting part of the working routine
Set a reporting cut-off date and a short meeting with named owners. Review missing information, variances requiring analysis and decisions made. A dashboard’s value depends on the figures leading to action and being updated regularly.