Workflow Templates: Budget Variance Analysis Checklist

Ensure all financial statements and records up to the current date are accurate and complete.

Gather the original budget for the period being analyzed.

Collect actual financial results for the same period.

Compare actual revenues against budgeted revenues to identify variances.

Analyze actual expenses versus budgeted expenses to determine differences.

Investigate any significant variances between actual and budgeted figures for both income and expenditures.

Identify economic or market changes that could have impacted the budget performance.

Examine internal factors such as production efficiency or changes in operational processes.

Review for any one-time events or unexpected occurrences that could have caused variances.

Prepare a detailed report outlining the variances with clear explanations for each.

Highlight areas of concern where performance did not meet the budget.

Provide recommendations for adjustments to current strategies or the budget itself.

Develop action plans to address the negative variances and capitalize on positive ones.

Set specific, measurable, achievable, relevant, and time-bound (SMART) goals for budget adjustments.

Communicate action plans to relevant stakeholders and assign responsibilities.

Schedule regular budget reviews to monitor progress on action plans.

Adjust forecasts and budgets as necessary based on the variance analysis.

Document lessons learned and integrate them into future budgeting processes.

Budget Variance Analysis Checklist