variance-analysis

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

1. Compare actual vs. budget (and vs. prior/forecast) by line item: revenue, COGS, opex, EBITDA. Compute the variance ($ and %) and flag material ones.
2. Decompose drivers: price vs. volume vs. mix on revenue; rate vs. usage on costs; one-offs vs. structural.
3. Favorable vs. unfavorable - and is it timing (will reverse) or permanent?
4. Root cause + owner for each material variance.
5. 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).