fin-variance-analysis

What problem does it solve?

This Skill helps finance and business teams turn unexplained P&L and balance sheet variances into actionable explanations by decomposing total variances into quantifiable drivers and producing a reconciled waterfall narrative for leadership and reporting.

Core Features & Use Cases

• Variance decomposition techniques: Price × volume, rate/mix, headcount/compensation, spend category and timing decompositions to isolate root drivers.
• Waterfall reconciliation & presentation: Step-through waterfall format and reconciliation table guidance to verify starting value + drivers = ending value.
• Narrative generation & materiality guidance: Concise driver-focused commentary templates, materiality thresholds, investigation prioritization, and recommended actions for board or management reporting.
• Use case: Produce budget vs actual commentary for revenue and COGS, explain sequential month-on-month swings, or prepare variance notes for a quarterly board pack.

Quick Start

Use fin-variance-analysis to decompose Q4 Revenue actual vs budget into volume, price, mix, and timing drivers and generate a reconciled waterfall with a 2–3 sentence narrative for each material driver.