What is the first action a client should take to create a new budget based on actuals data from a previous period?

Turning on the Compare reference data slider and selecting the required previous period is the correct first action a client should take to create a new budget based on actuals data from a previous period. This step allows the client to access the actual data from the specified previous period, facilitating a direct comparison between past performance and the new budget being created.

By enabling this feature, the client can easily visualize how actual figures can inform future budget decisions, ensuring a more informed planning process. This capability promotes effective financial management by rooting current budget predictions in historical performance, thus enhancing accuracy and relevance.

The other actions, while related to budget creation, do not initiate the process effectively. For instance, merely selecting the previous period without activating the comparison feature does not leverage the historical data adequately. Additionally, options like checking the Compare data checkbox or selecting the Copy data link do not directly set the stage for integrating previous actuals into the new budget strategy.