Variance Analysis Chart

The variance analysis report is an often used Excel template in everyday work.

In our article today, we would like to introduce with a few words the procedure that can help us achieve spectacular results quickly when we have to create a plan-actual comparison.

Our Excel tip series expands with another presentation.

In the future, we’d like to pay a little more attention to the small but handy apps.

Based on our feedback, these are at least as much needed as dashboard templates or complex analyses.

The plan-actual issue plays an essential role in the life of companies because careful planning alone is never enough.

The plan’s realization has to be continuously followed so in case of remarkable difference (that can also be positive or negative), we can immediately take appropriate action.

Fortunately, Excel is always at hand!

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The Solution

The Excel template will make the analysis quicker with the help of a straightforward but effective solution.

Now let’s talk about the technical background of the variance analysis report!

Everyone knows that economic analysis is an accepted method of comparison, and without it, evaluation of economic activity is unimaginable.

Business procedures are very rarely examined by themselves, and in practice, most of the analysis is done by choosing bases of comparison.

The plan-actual comparison seems very simple and doesn’t need complicated calculations. Generally, we mean a difference or ratio by it.

The dynamic comparison means data comparison for a period or point of time, so it serves as observation and measuring economic occurrence changes in a period.

The comparison can be made in a timeframe (for example, in a quarter of a year or one year) or the same point of time.

This is the case in comparing one or more types of product or service data. Another example can be the characteristics of the organizational departments within the company.

Variance Analysis Report

Excel can create the variance analysis report. The usage of the drop-down box is unavoidable; it is an inseparable part of the modern report.

Three components can be chosen from the list. We only see the plan’s data in a monthly breakdown by selecting the plan.

Here we don’t pay any attention to the actual differences between them, or to be exact, we don’t display them at the moment.

If we choose the Actual option, we can fill in the table with current values/data.

The purpose of the Variance option is to portray the plan, the actual and the positive or negative differences between them.

Variance Analysis using conditional formatting

Conditional Formatting is an often used Excel solution for spectacularly highlighting the differences. For example, as you can see in the picture, we portrayed the differences with red and green colors if you chose the Variance switch.

We have created these with the use of the dynamic method. Therefore, minimal programming skill is needed to develop the currently introduced template.

If you want to know the code, press ALT + F11 together, and the VBA Editor’s window will appear. You can find the code here that enabled us to display interactive data.

This is all about creating the variance analysis report and its characters. We are sure you can learn all the above very quickly if you download the free Excel template.

Thank you for staying with us today! If you have any ideas, tips, or suggestions that you would like to see in the blog, please don’t hesitate to write to us!

Variance analysis in a single click? It is possible! Check our professional excel add-in!

See you again next week! You can find the template here.

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