Discuss the most important thing you would do to minimize variances in this report. Support your answer.

Actual vs. Budget Report

Figure 1 - Image of Craig's Design and Landscaping Services June 2016 Budget vs. Actuals Report, reproduced in table below.

Craig's Design and Landscaping Services Budget vs. Actuals: Budget - FY16 P&L June 2016

ACTUALBUDGETTOTAL OVER BUDGET% OF BUDGET IncomeDesign income12751300-2598.08%Discounts given-89.5 -89.5 Landscaping Services4324.0832751049.08132.03%Pest Control Services70 70 Sales of Product Income912.751000-87.2591.28%Services503.555003.55100.71Total Income$6,995.88 $6,075.00 $920.88 115.16%Cost of Goods SoldCost of Goods Sold4054005101.25%Total Cost of Goods Sold$405.00 $400.00 $5.00 101.25%Gross Profit$6,590.88 $5,675.00 $915.88 116.14%ExpensesAdvertising74.8675-0.1499.81%Automobile312.813057.81102.56%Equipment Rental1127537149.33%Insurance241.232410.23100.10%Job Expenses602.6353567.63112.64%Legal & Professional Fees56550065113.00%Maintenance and Repair940700240134.29%Meals and Entertainment28.4935-6.5181.40%Office Expenses18.0820-1.9290.40%Rent or Lease9009000100Utilities188.451853.45101.86%Total Expenses$3,983.55 $3,571.00 $412.55 111.55%Net Operating Income$2,607.33 $2,104.00 $503.33 123.92%Other ExpensesMiscellaneous2666 2666 Total Other Expenses$2,666.00 $0.00 $2,666.00 0.00%Net Other Income($2,666.00)$0.00 ($2,666.00)0.00%Net Income($58.67)$2,104.00 ($2,162.67)-2.79%