Evaluate the deviation between actual and budgeted/forecasted results

Variance analysis is an important tool for businesses to evaluate the difference between actual and budgeted/forecasted results. A variance analysis template can help you quickly and easily analyze the differences between the two sets of data.

Step 1: Gather the Data

The first step in using a variance analysis template is to gather the data that you need to analyze. This includes the actual results, the budgeted/forecasted results, and any other relevant information. Make sure that you have all of the necessary data before you begin.

Step 2: Enter the Data into the Template

Once you have gathered the data, you can enter it into the variance analysis template. Make sure that you enter the data accurately and that you double-check your work. This will ensure that the results of your analysis are accurate.

Step 3: Analyze the Data

Once you have entered the data into the template, you can begin to analyze it. Look for any discrepancies between the actual results and the budgeted/forecasted results. This will help you identify areas where you can improve your budgeting and forecasting processes.

Step 4: Take Action

Once you have identified any discrepancies between the actual results and the budgeted/forecasted results, you can take action to address them. This could include making changes to your budgeting and forecasting processes, or taking other corrective actions. Taking action will help you ensure that your budgeting and forecasting processes are as accurate as possible.

Conclusion

Using a variance analysis template can help you quickly and easily evaluate the difference between actual and budgeted/forecasted results. By gathering the necessary data, entering it into the template, analyzing the data, and taking action, you can ensure that your budgeting and forecasting processes are as accurate as possible.