Examining the difference between actual results and a budget, forecast or other comparison, and explaining its causes.
Variance analysis starts with a comparison between an actual result and a planned or reference amount. The analyst checks that the figures cover comparable activity and periods, calculates the difference, and investigates what caused it. For costs, this can involve comparing actual expenditure with planned or target costs and examining the underlying transactions. A difference is a starting point for explanation, rather than a conclusion about performance. The comparison basis matters because a result can differ from the budget while remaining close to a revised forecast. Useful commentary identifies which comparison is being made and explains the drivers.
In job listings
De Beers sought a Finance Analyst in London to prepare monthly management reporting packs with detailed variance analysis against budget, forecast, prior year and strategic plan. The role illustrates why the comparison basis belongs alongside the explanation: each benchmark provides a different reference for assessing the same actual results. Search local jobs for “variance analysis”.
