| name | variance-analysis |
| description | Run budget-vs-actual / forecast-vs-actual variance analysis (FP&A) - compute variances, find drivers, and recommend actions. Use for monthly/quarterly close, business reviews, or reforecasts. |
variance-analysis
Explain the gap between plan and reality, then say what to do about it.
Process
- Compare actual vs. budget (and vs. prior/forecast) by line item: revenue, COGS, opex, EBITDA. Compute
the variance ($ and %) and flag material ones.
- Decompose drivers: price vs. volume vs. mix on revenue; rate vs. usage on costs; one-offs vs. structural.
- Favorable vs. unfavorable - and is it timing (will reverse) or permanent?
- Root cause + owner for each material variance.
- Action / reforecast: what changes for the rest of the year; update the outlook.
Output
- A variance table (actual / budget / variance $ / variance % / driver / timing-vs-permanent / action) and a
short narrative on the material movers, plus any reforecast.
Guardrails
- Actuals from the GL/close (sourced); don't fabricate a variance or driver.
- Materiality threshold stated; reforecast figures labeled as estimates (
projections-assumptions).
- Confidential internal data stays internal (
confidentiality-mnpi).
