Variance analysis
Project Description: Compare actual revenue and costs with budget, forecast or prior periods, and use AI to prepare source-linked explanations of the main drivers. Existing validated calculations supply the figures; analysts investigate causes and review the explanations.
Implementation effort
100–400staff hours total
Current workload
—staff hours / month
Net time saved
—staff hours / month
Project difficulty
Moderate
Implementation work
Define comparisons and review rules16–56h
- Agree the actual-versus-budget, forecast and prior-period comparisons, driver definitions and materiality rules.
- Use 20 reference cases to define analyst review and escalation for unexplained results.
Connect actuals, plans and calculation models24–96h
- Map three approved datasets and five analytical dimensions to the existing calculation model.
- Align periods, plan versions and account definitions; reconcile source totals.
Configure variance detection and explanations24–104h
- Use validated calculations to identify material differences and return traceable source references.
- Configure AI explanations of drivers and incomplete results; keep arithmetic in the existing model.
Test figures and driver explanations24–96h
- Run the 20 reference cases across known periods and reconcile numerical claims.
- Have analysts check explanations, correct unsupported claims and rerun failed cases.
Pilot with FP&A analysts12–48h
- Pilot the analysis in one FP&A cycle and train analysts to check calculations and supporting evidence.
- Define investigation, escalation and support responsibilities before handover.
Ongoing work
Maintain variance analysis32–120h / yr
- Check answers and source mappings as datasets, definitions and calculation models change.
- Update prompts and reference questions, and rerun affected tests; routine analysis review remains operating work.
Further projects
- Extend analysis to additional accounts, entities, products or business drivers.
- Use reviewed analysis in management reporting; count the shared preparation work once.