Financial Planning and Analysis | Enterprise Performance Management
Variance Analysis
The gap, decomposed, with the transactions underneath.
What it does
Inside Variance Analysis.
The review meeting starts from the explanation rather than from the question.
01
Decomposition into volume, price, mix, timing and rate
02
Drill from variance to the underlying transactions
03
Commentary captured and retained against the figure
04
Threshold alerting on material or repeated variances
Where it sits
Part of Financial Planning and Analysis.
Budgets Build, review and lock the budget by dimension. Rolling Forecasts A forecast that re-bases itself as the year progresses. Scenarios Downside, base and upside on the same structure. Driver Models The relationships that actually move the numbers. Workforce Planning Headcount, cost and capacity planned as one thing. KPI Targets Targets defined on the ledger, so the actual needs no assembling. Annual Operating Plan Annual operating plan software that eliminates spreadsheet sprawl. Cash Flow Forecasting Cash flow forecasting software. A direct 13-week cash runway built from live receivables, payables, payroll and tax due dates. Departmental Budgets Departmental budgeting software where every cost centre owns its own number. Revenue Planning A revenue plan tied to pipeline and books. Plan revenue by product, segment or region from the same chart of accounts your statements use.
Run Variance Analysis against your books.
A working session on your structure and a month of your documents.