Your budgeting process must therefore:<\/p>\n\n\n\n
- \n
- Be clearly structured<\/li>\n\n\n\n
- Support regular monitoring<\/li>\n\n\n\n
- Allow comparison of actual spending against planned spending<\/li>\n\n\n\n
- Demonstrate that reserves are appropriate<\/li>\n<\/ul>\n\n\n\n
Easy PC Accounts is designed to support this requirement.<\/p>\n\n\n\n
\n\n\n\nRegulatory Context<\/h2>\n\n\n\n
The NALC Model Financial Regulations state:<\/p>\n\n\n\n
The RFO shall regularly provide the council with a statement of receipts and payments to date under each head of the budgets, comparing actual expenditure to the appropriate date against that planned as shown in the budget. These statements are to be prepared at least at the end of each financial quarter and shall show explanations of material variances. For this purpose \u201cmaterial\u201d shall be in excess of \u00a3250 or 5% of the budget, whichever is the greater.<\/p>\n\n\n\n
To meet this requirement effectively, your budget must be structured correctly from the outset.<\/p>\n\n\n\n
\n\n\n\nAccount Names and Account Codes<\/h2>\n\n\n\n
You may see references to both Account Codes<\/strong> and Account Names<\/strong>. In Easy PC Accounts, these terms are interchangeable.<\/p>\n\n\n\n
Traditionally, accounting systems refer to \u201caccount codes.\u201d However, we use the term Account Name<\/strong> throughout the system because it is clearer and easier to understand, particularly for councillors and clerks without a formal accounting background.<\/p>\n\n\n\n
Each Account Name:<\/p>\n\n\n\n
- \n
- Represents a specific income or expenditure heading<\/li>\n\n\n\n
- Sits within an Account Group<\/li>\n\n\n\n
- Has a budget attached to it<\/li>\n\n\n\n
- Appears on budget reports<\/li>\n<\/ul>\n\n\n\n
Using meaningful names instead of numeric codes makes reports more transparent and easier to follow at council meetings.<\/p>\n\n\n\n
\n\n\n\nProfiled Budgeting Explained<\/h2>\n\n\n\n
Easy PC Accounts uses profiled budgeting<\/strong>, a method also used in accounting packages such as QuickBooks and Sage.<\/p>\n\n\n\n
Profiled budgeting means:<\/p>\n\n\n\n
- \n
- The annual budget is split into monthly segments<\/li>\n\n\n\n
- Income and expenditure are allocated to the months when they are expected to occur<\/li>\n\n\n\n
- Reports compare actual transactions against what should have happened by that point in the year<\/li>\n<\/ul>\n\n\n\n
This approach provides:<\/p>\n\n\n\n
- \n
- More accurate comparisons<\/li>\n\n\n\n
- Clearer quarterly reporting<\/li>\n\n\n\n
- Fewer unexplained variances<\/li>\n\n\n\n
- Better financial oversight for councillors<\/li>\n<\/ul>\n\n\n\n
Without profiling, a simple annual total can make spending appear over or under budget simply because of timing.<\/p>\n\n\n\n
\n\n\n\nBefore You Start: Budget Structure<\/h2>\n\n\n\n
Budget reports are driven by two main factors:<\/p>\n\n\n\n
- \n
- The Account Names you create<\/li>\n\n\n\n
- The budgets assigned to those Account Names<\/li>\n<\/ol>\n\n\n\n
If Account Names are not structured clearly, your reports will not present information in a way that councillors can easily understand.<\/p>\n\n\n\n
For this reason, budget planning should begin with reviewing your Account Groups and Account Names.<\/p>\n\n\n\n
\n\n\n\nStep 1 \u2013 Create or Review Account Names<\/h2>\n\n\n\n
Each income and expenditure heading must have its own Account Name.<\/p>\n\n\n\n
When creating or editing an Account Name, you can:<\/p>\n\n\n\n
- \n
- Assign it to the correct Account Group<\/li>\n\n\n\n
- Set whether it relates to income or expenditure<\/li>\n\n\n\n
- Enter the annual budget amount<\/li>\n\n\n\n
- Profile the budget across the financial year<\/li>\n<\/ul>\n\n\n\n
Clear and logical Account Names make budget reports easier to read and understand.<\/p>\n\n\n\n
Examples of expenditure Account Names:<\/p>\n\n\n\n
- \n
- Staff Costs<\/li>\n\n\n\n
- Grounds Maintenance<\/li>\n\n\n\n
- Insurance<\/li>\n\n\n\n
- Street Lighting<\/li>\n\n\n\n
- Grants<\/li>\n<\/ul>\n\n\n\n
Examples of income Account Names:<\/p>\n\n\n\n
- \n
- Precept<\/li>\n\n\n\n
- Allotment Rents<\/li>\n\n\n\n
- Grants Received<\/li>\n\n\n\n
- VAT Reclaim<\/li>\n<\/ul>\n\n\n\n
![\"Account](\"https:\/\/documentation.easypcaccounts.co.uk\/wp-content\/uploads\/2026\/03\/Account-Names-with-circle-1024x419.png\")
<\/figure>\n\n\n\n
\n\n\n\nStep 2 \u2013 Enter the Annual Budget<\/h2>\n\n\n\n
Once Account Names are in place:<\/p>\n\n\n\n
- \n
- Open the relevant Account Name.<\/li>\n\n\n\n
- Enter the total annual budget amount.<\/li>\n\n\n\n
- Save the changes.<\/li>\n<\/ol>\n\n\n\n
![\"example](\"https:\/\/documentation.easypcaccounts.co.uk\/wp-content\/uploads\/2026\/03\/Budget-menu.png\")
<\/figure>\n\n\n\nThis establishes the total budget allocated for that heading.<\/p>\n\n\n\n
\n\n\n\nStep 3 \u2013 Profile the Budget<\/h2>\n\n\n\n
After setting the annual amount, you should profile it across the months of the financial year.<\/p>\n\n\n\n
Example of a spread budget.<\/p>\n\n\n\n
![\"Budget](\"https:\/\/documentation.easypcaccounts.co.uk\/wp-content\/uploads\/2026\/03\/Budget-entry-1024x419.png\")
<\/figure>\n\n\n\nYou can:<\/p>\n\n\n\n
- \n
- Spread the amount evenly across 12 months<\/li>\n\n\n\n
- Allocate larger amounts to specific months<\/li>\n\n\n\n
- Set one-off payments in a single month<\/li>\n\n\n\n
- Reflect seasonal income or expenditure<\/li>\n<\/ul>\n\n\n\n
Examples:<\/p>\n\n\n\n
- \n
- Insurance may be allocated to a single month<\/li>\n\n\n\n
- Grounds maintenance may be spread between April and October<\/li>\n\n\n\n
- Precept income may be split between April and September<\/li>\n<\/ul>\n\n\n\n
Example of a single annual budgetary item.<\/p>\n\n\n\n
![\"\"](\"https:\/\/documentation.easypcaccounts.co.uk\/wp-content\/uploads\/2026\/03\/budget-with-single-item-1024x484.png\")
<\/figure>\n\n\n\nProfiling ensures that quarterly budget reports reflect expected activity rather than simply dividing by twelve.<\/p>\n\n\n\n
\n\n\n\nStep 4 \u2013 Review Budget Reports<\/h2>\n\n\n\n
Once budgets are entered and profiled, you can produce budget reports showing:<\/p>\n\n\n\n
- \n
- Annual budget<\/li>\n\n\n\n
- Budget to date (based on profile)<\/li>\n\n\n\n
- Actual receipts and payments<\/li>\n\n\n\n
- Variance<\/li>\n\n\n\n
- Percentage of budget used<\/li>\n<\/ul>\n\n\n\n
You may find that using spreadsheet software allows you to highlight specific items.<\/p>\n\n\n\n
These reports should be presented to council at least quarterly.<\/p>\n\n\n\n
Material variances (over \u00a3250 or 5% of the budget, whichever is greater) should be explained to councillors.<\/p>\n\n\n\n
\n\n\n\nGood Practice When Setting Budgets<\/h2>\n\n\n\n
When preparing your annual budget:<\/p>\n\n\n\n
- \n
- Base figures on previous years\u2019 actual spending<\/li>\n\n\n\n
- Consider known increases such as contracts, utilities, and staffing<\/li>\n\n\n\n
- Review reserves and earmarked funds<\/li>\n\n\n\n
- Ensure income projections are realistic<\/li>\n\n\n\n
- Agree the final budget formally at a council meeting<\/li>\n<\/ul>\n\n\n\n
The precept requirement should clearly derive from this approved budget.<\/p>\n\n\n\n
\n\n\n\nWhy This Matters<\/h2>\n\n\n\n
A properly structured and profiled budget:<\/p>\n\n\n\n
- \n
- Supports compliance with Financial Regulations<\/li>\n\n\n\n
- Makes quarterly reporting straightforward<\/li>\n\n\n\n
- Reduces confusion at meetings<\/li>\n\n\n\n
- Demonstrates sound financial management<\/li>\n\n\n\n
- Supports the AGAR internal audit process<\/li>\n<\/ul>\n\n\n\n
Budget setup is not just data entry \u2014 it forms the foundation of your council\u2019s financial governance.<\/p>\n\n\n\n
If you would like further guidance on structuring account codes or reviewing your current budget setup, please refer to the related documentation pages or contact support.<\/p>\n","protected":false},"excerpt":{"rendered":"
The budget is one of the most important financial documents presented to councillors. One of the key requirements in the Annual Governance and Accountability Return (AGAR) Internal Audit report states: D. The precept or rates requirement resulted from an adequate budgetary process; progress against the budget was regularly monitored; and reserves were appropriate. Your budgeting … Continue reading “Setting Up a Budget in Easy PC Accounts”<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-3680","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/documentation.easypcaccounts.co.uk\/index.php\/wp-json\/wp\/v2\/pages\/3680","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/documentation.easypcaccounts.co.uk\/index.php\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/documentation.easypcaccounts.co.uk\/index.php\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/documentation.easypcaccounts.co.uk\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/documentation.easypcaccounts.co.uk\/index.php\/wp-json\/wp\/v2\/comments?post=3680"}],"version-history":[{"count":7,"href":"https:\/\/documentation.easypcaccounts.co.uk\/index.php\/wp-json\/wp\/v2\/pages\/3680\/revisions"}],"predecessor-version":[{"id":3697,"href":"https:\/\/documentation.easypcaccounts.co.uk\/index.php\/wp-json\/wp\/v2\/pages\/3680\/revisions\/3697"}],"wp:attachment":[{"href":"https:\/\/documentation.easypcaccounts.co.uk\/index.php\/wp-json\/wp\/v2\/media?parent=3680"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}