How can you create a variance report that is clear and concise?

Tenho uma vasta experiência em relatórios financeiros. Antes de come?ar, é importante entender o propósito do relatório. Determine quais métricas financeiras ser?o analisadas e por que essas varia??es s?o importantes para a empresa. Reúna os dados financeiros relevantes necessários para o relatório. Isso pode incluir dados de receitas, despesas, lucros, fluxo de caixa, entre outros, para o período em quest?o. Analise os dados coletados e identifique as varia??es significativas em rela??o aos períodos anteriores, metas estabelecidas ou padr?es históricos. Isso pode incluir varia??es positivas e negativas em diferentes áreas financeiras. Uma vez identificadas as varia??es, investigue as causas por trás delas.

When creating a clear and concise variance report, one must understand the audience the report is being built for. Use clear language with timelines showing cumulative data as well as the monthly comparative and easy to read summarizations following your data with implications. The base data of the report should show the increase or decrease over the stated time period by percentage, thus supporting your summary. The impact and reasoning for the results should be summarized as well with backup data for support..

Ensure precision and clarity in your analysis by establishing the following: ?? Define Objectives and Goals ?? Identify KPIs ?? Determine Reporting Timeframes ?? Specify Intended Audience

1. Curate the reports. You as a Finance leader should look at almost ALL line items. Select a short set of metrics that are most impactful drivers of financial performance for CEO/investor reports - definitely Revenue, COGS and EBITDA, other major line items- I like grouping costs into variable and fixed as an example. In my last job we also used Cost to Acquire and Cost to Serve (GTM and Support/Ops). Your business model specifics will guide the selection. 2. Include relevant comparisons, QoQ, YoY all have a purpose and I always look at both, key if you have seasonality. 3. Consider including key non-GAAP metrics which drive revenue, AAR, churn for example if you are SaaS. 4. Special attention to "pain points" and "north stars"

Selecting relevant variables and categories enhances the depth and clarity of your analysis! ? Focusing on key factors and segmentation improves insight and understanding. ?

Proceed with accuracy by following these essential steps: ?? Select Variables and Categories ?? Calculate Variances ?? Determine Percentages ?? Label Favorable and Unfavorable Variances

Context is crucial. Skilled analysts must understand why variances occurred before they make recommendations for addressing them. Consider an unfavorable COGS variance vs. budget. If the variance resulted purely due to revenue growth, it would not be cause for concern. On the other hand, if it was due to an increase in the cost of raw materials purchased from one vendor, you might recommend identifying a lower-cost vendor or increasing prices to preserve gross margin. Understanding the "why" behind the variance impacts the action you recommend. Be sure to remain objective in your analysis and tailor your presentation to your audience's level of understanding.

Using clear language and visual aids fosters engagement, making complex data more accessible. ? This analysis empowers informed decision making and strategic planning, ensuring effective responses to performance discrepancies. ??

Make it easy for the report reader to draw the conclusion. For the one or two key numbers, bold-face, highlight, bigger type font, box around it - anything to make it jump off the page. As an analyst, you may have decided the best option in your mind. Now you have the opportunity to present that option in a way for the decision maker to choose what you think is right.

Summarizing key points and actions streamlines decision-making. ? Clear headings and bullet points enhance readability. ? Specific recommendations empower proactive responses. ??

Creating a clear and concise variance report involves several key steps: After defining the scope and purpose, and Choosing the relevant variables and categories you have to Choose a Comparison Period, Format the Report, Highlight Variances, Provide Explanations, Summarize Key Insights, and Include Recommendations. Of course, don't forget to Review and Revise.