Budget variance in Zoho Projects is the difference between the project’s planned budget and the actual cost accumulated to date. A positive variance means you have spent less than planned (under budget). A negative variance means you have spent more than planned (over budget).
Zoho Projects calculates budget variance automatically based on logged hours and billing rates compared to the project’s budget setting. The project overview and budget reports display remaining budget and variance percentage in real time.
When budget variance turns negative, investigate whether it is due to scope creep (additional work added without corresponding budget), poor estimates, or inefficiency. The corrective action differs for each cause: scope creep requires a change request; estimate errors require re-baselining; inefficiency requires process improvement.
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