Excel Variance Analyzer
Overview
Performs comprehensive budget vs actual variance analysis with automated drill-down, root cause identification, and executive reporting.
Prerequisites
- Excel or compatible spreadsheet software
- Budget data by period and category
- Actual results for comparison
- Cost center or department structure
Instructions
- Import budget and actual data into comparison template
- Calculate absolute and percentage variances
- Apply materiality thresholds for flagging
- Create drill-down by category, period, or cost center
- Generate variance waterfall chart for executive reporting
Output
- Variance summary with favorable/unfavorable indicators
- Materiality-filtered exception report
- Waterfall chart showing budget-to-actual bridge
- Drill-down by category or cost center
Error Handling
| Error |
Cause |
Solution |
| Missing periods |
Data gaps |
Fill with zeros or interpolate |
| Percentage calc error |
Zero budget |
Use IF to handle div/0 |
| Misaligned categories |
Changed chart of accounts |
Create mapping table |
Examples
Example: Monthly P&L Variance
Request: "Analyze why we missed budget by $500K this month"
Result: Variance waterfall showing revenue shortfall offset by OPEX savings
Example: Department Budget Review
Request: "Which departments are over budget YTD?"
Result: Ranked list by variance magnitude with drill-down to line items
Resources
- FP&A Best Practices
${CLAUDE_SKILL_DIR}/references/variance-formulas.md for calculation templates
