Budget Variance Analysis Checklist ( FINANCE )

This checklist is designed to guide finance teams through the process of analyzing budget variances to ensure financial control and accountability.

• Gather Budget Data

  Collect the approved budget data for the period being analyzed, including all relevant line items and categories.

• Collect Actual Financial Data

  Obtain actual financial data for the same period, ensuring it is accurate and complete for comparison with the budget.

• Compare Budget vs Actuals

  Analyze the differences between budgeted figures and actual figures to identify variances.

• Determine Variance Reasons

  Investigate the reasons for significant variances, including both favorable and unfavorable outcomes.

• Document Findings

  Record the findings of the variance analysis, including detailed explanations for variances greater than a defined threshold.

• Review with Stakeholders

  Present the variance analysis findings to relevant stakeholders, such as department heads or senior management, for input and discussion.

• Implement Action Plans

  Develop and implement action plans to address unfavorable variances and optimize future budget performance.

• Follow-Up on Action Plans

  Schedule follow-up meetings to review the status of action plans and ensure that corrective measures are being implemented effectively.