INDUSTRY

Budget Realization Report: Definition and How to Make

The definition of a budget realization report (LRA) is a report that presents information related to the financial budget. What are the elements, benefits, and how to make a budget realization report? Find out all the answers on the Mekari Journal Blog!

In fulfilling the obligations as regulated in the law, the government must make financial reports, one of which is the budget realization report.

Businesses or companies should also have this report in order to match the budget and the amount that has been realized in the field.

To fulfill the benefits of financial reports, the budget realization report serves as a provider of information related to the budget and the realization of reporting entities in a certain period.

What is a Budget Realization Report?

The definition of a budget realization report is a report that provides various information on budget realization, financing, expenditures, and so on and compares it with the total budget in a period.

In general, the report presents a variety of matters relating to the financial budget.

Among them are related the allocation, sources, and use of financial resources which are usually managed by the central and regional governments.

In addition, the company also compiled this report with more or less the same purpose. This report can show whether the financial statements presented are valid and in accordance with the reality on the ground.

Budget Realization Report Elements

The budget realization report itself includes several elements, namely LRA income, transfers, expenditures, and financing.

Here’s the full explanation:

1. LRA income

The first element is the income from the budget realization report or interpreted as revenue from the Regional/State General Treasurer.

It could also be from other government entities by adding balances for more budgets in the intended budget period and becoming the rights of the government, meaning that they do not have to be paid back.

2. Shopping

The next element is expenditure which includes all expenditures from the Regional/State General Treasurer.

This expenditure activity generally reduces the budget balance in excess of the relevant budget period.

All transactions in shopping activities will not be paid back by the government.

3. Transfer

The transfer is the receipt and disbursement of money from one entity to another.

This includes revenue-sharing and balancing funds for a project.

4. Financing

Financing or financing is any type of transaction of expenditure or receipt that will not affect the wealth of an entity.

All types of financing must be paid and will be received again based on a predetermined period.

In the government budget, this element aims to cover the deficit.

 

The budget realization report presents a lot of information related to revenues, transfers, expenditures, deficits, surpluses, and financing of an entity.

This information can later be used as a reference for evaluating various types of decision-making.

Among others, including the allocation of economic resources, compliance with reporting entities to the budget, and accountability.

Based on these facts, it can be concluded that the budget realization report has a number of benefits, including:

  1. Presenting information regarding the allocation, source, and use of economic resources.
  2. Can be used to predict economic resources for funding the activities of the central and local governments in the next period.
  3. With the report data, it can be used to evaluate the report users on the decisions that will be made. Where the decision is taken when using economic resources, accountability, and obedience in the reporting entity so that the money management process runs smoothly.
  4. The presence of the report on the realization of these funds provides details on the overall financial condition record. So that this can be used as the most accurate source of information to determine the effectiveness of income generation and realization of economic resources.
  5. The report can also be used to compare the income from the use of the budget whether it is in accordance with the laws and regulations or not. This report is useful for making decisions about the allocation of economic resources complete with accountability in the coming period.

It should be noted that the LRA can also provide information related to various acquisitions and uses of economic resources that have been implemented, whether the use is effective, efficient, economical, and in accordance with the budget and regulations in the law or not.

How to Make a Budget Realization Report

A good and correct report must certainly be understood by anyone who sees it or reads it.

In addition, the report must be informative. Examples of reports that are comfortable and easy to read are reports in the form of charts/graphs.

With a report made in the form of a graph, of course, it will be easier for readers to understand and understand it because the numbers presented are in the form of structured images.

The ways to make a budget realization report include the following:

Comparing budget and financial realization

The main thing in the budget realization report is the comparison between the SKPD’s Financial Realization and the SKPD’s Budget.

Reports presented in the form of graphs and tables are very important.

Because the report is an illustration of the performance of the SKPD where the report has always been the priority of the Regional Head.

Comparing the cash budget with financial realization / ppt

By definition, a cash budget is created to plan for the typical inflows and outflows.

The cash budget is very important because it supports the smooth operation of an organization.

This cash budget includes information on planned cash flows out and used for shopping or other purposes as well as cash inflows obtained from other sources of income.

Comparison of budget composition and financial realization per expenditure

This comparison is a form of real financial data processing that can be reported to superiors.

This comparison process is carried out by presenting a comparison of the budget for each type of expenditure.

So that this can be used as a consideration for preparing a budget for the next budget reporting period.

Graph of monthly financial realization per program

The graph intended to determine the trend of budget absorption or financial realization in each period.

Based on this graph, a reference for planning activities for the next budget reporting period can be taken.

Comparison of financial realization with physical progress of activities

In the explanation above, it has been stated that the budget report is one measure of performance.

However, it becomes more complete if the financial realization report is accompanied by a progress report on the physical activities.

So from there, it will be clear how the progress of the ongoing activities.

In making a budget realization report, a clear identification must be included on each page of the report.

For example, the name of the entity or entity’s facilities, the currency used, the scope of the reporting entity, the coverage period, and the numerical unit used.

Compiling Budget Realization Reports Is Easier with Journals

For those of you who are still confused about how to make a good and correct budget realization report, you can use the Mekari Journal accounting software.

With the Journal, you can make financial reports and also prepare a budget so that later it will be easier to make budget realizations.

The features in budget management include:

  • Operational costs are more controlled and monitored.
  • Track all expenses paid or payable by category you need.
  • Set a budget for the next few months automatically.

You can also compare the budget that you have created with the number of real transactions on the income statement budget.

Here you will get interesting services regarding budget realization reports and applications to make it easier for you to complete tasks quickly.

If this budget realization report cannot be presented or is not even available within the stipulated timeframe, it can reduce the benefits of the report itself.

Also, learn how android bookkeeping apps can help your work.

For more details, you can immediately try the Journal application for free for 14 days, or contact our sales directly by pressing the button below!

Comparison of budget composition and financial realization per expenditure

This comparison is a form of real financial data processing that can be reported to superiors.

This comparison process is carried out by presenting a comparison of the budget for each type of expenditure.

So that this can be used as a consideration for preparing a budget for the next budget reporting period.

Graph of monthly financial realization per program

The graph intended to determine the trend of budget absorption or financial realization in each period.

Based on this graph, a reference for planning activities for the next budget reporting period can be taken.

Comparison of financial realization with physical progress of activities

In the explanation above, it has been stated that the budget report is one measure of performance.

However, it becomes more complete if the financial realization report is accompanied by a progress report on the physical activities.

So from there, it will be clear how the progress of the ongoing activities.

In making a budget realization report, a clear identification must be included on each page of the report.

For example, the name of the entity or entity’s facilities, the currency used, the scope of the reporting entity, the coverage period, and the numerical unit used.

Compiling Budget Realization Reports Is Easier with Journals

For those of you who are still confused about how to make a good and correct budget realization report, you can use the Mekari Journal accounting software.

With the Journal, you can make financial reports and also prepare a budget so that later it will be easier to make budget realizations.

The features in budget management include:

  • Operational costs are more controlled and monitored.
  • Track all expenses paid or payable by category you need.
  • Set a budget for the next few months automatically.

You can also compare the budget that you have created with the number of real transactions on the income statement budget.

Here you will get interesting services regarding budget realization reports and applications to make it easier for you to complete tasks quickly.

If this budget realization report cannot be presented or is not even available within the stipulated timeframe, it can reduce the benefits of the report itself.

Also, learn how android bookkeeping apps can help your work.

For more details, you can immediately try the Journal application for free for 14 days, or contact our sales directly by pressing the button below!

Well, that’s a complete explanation of what a budget realization report is, its elements, benefits, and how to make this report, I hope it’s useful!

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