Template preview · Professional services
Budget versus actual
Explain meaningful variance and decide what changes next.
A monthly budget variance review for a fictional team.
Sample purpose
Explain meaningful variance and decide what changes next.
Audience: Finance manager, Department lead- Structure
- 4 sections
- Criteria
- 12
- Sources
- 7
- Watches
- 4
- Default approach
- Review first
Set the purpose first. Then change every section, criterion, and agent setting before anything runs.
Fictional sample
Structure and criteria
Sample content shows the shape of a useful document. Copying it is optional.
01 Review firstReporting period
For this budget versus actual, states approved budget and actual reporting period.
Criteria
- States approval date, approver and approved total for the budget being compared.
- States the ledger close cutoff and which figures are estimates or accruals.
- Names the cost owner and the escalation contact above the variance threshold.
Sources
- Lumen Foods budgets (fictional) api.lumen-foods.exampleApproved budget, approver and revision history.
- Lumen Foods ledger actuals (fictional) api.lumen-foods.examplePosted actuals with accrual flags.
Sample content
Lumen Foods saw fictional packaging spend exceed its March plan by 12%. Iris Bell is reviewing the March fictional operating budget. Packaging spend rose after a rush order; the team is checking the cause before changing the next month’s plan.
02 Review firstVariance analysis
For this budget versus actual, quantifies variance and explains its driver.
Criteria
- Each line shows dollar and percentage variance together.
- Each material variance (over 5% or $5,000) cites its driver: invoice, approval record or market index.
- Variances are tagged as price, volume, timing or process so ownership is clear.
Sources
- EIA gasoline and diesel prices eia.govFuel price context for freight variance.
- BLS producer price index, paper manufacturing (API) api.bls.govPackaging material price trend.
- Lumen Foods variance drivers (fictional) api.lumen-foods.exampleInternal driver records per variance.
Watches
- Checks eia.gov weekly
- Follows Reporting period
Sample content
Cost line Budget Actual Variance Known driver Packaging 50000 56000 6000 Rush order for revised cartons Freight 18000 17100 -900 Lower fuel surcharge 03 ManualCorrective decisions
For this budget versus actual, assigns a response to material variance.
Criteria
- Each material variance has one response: accept, fix a process, or renegotiate, with an owner and date.
- Favourable variances state whether the cause is sustainable and whether the forecast changes.
- Forecast changes wait for a confirmed driver, and unconfirmed ones are listed separately.
Sources
- Lumen Foods corrective actions (fictional) api.lumen-foods.exampleOwners, dates and outcomes of past responses.
Watches
- Follows Variance analysis
Sample content
- ☐ Iris obtains the rush-order approval record by Oct 9, 2026
- ☐ Ask packaging owner whether the revised carton is recurring
- ☐ Adjust April forecast only after the cause is confirmed
04 Review firstNext review
For this budget versus actual, tracks whether the response changed the next result.
Criteria
- Shows last period action and whether the variance shrank, with both numbers.
- Carries unresolved variances with owner, date and status.
- States an escalation rule, such as packaging above $52,000 in April goes to the finance VP.
Sources
- Lumen Foods variance history (fictional) api.lumen-foods.examplePrior variances and what each action achieved.
Watches
- Follows Corrective decisions
Sample content
- Packaging variance
- +$6,000 / +12%
- Freight variance
- -$900 / -5%
- April forecast revised
- Pending cause review