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 very useful apps.
Based on the feedbacks we receive these are at least as much needed than dashboard templates or complex analyses.
The plan-actual issue plays an important role in the life of companies, because careful planning alone is never enough.
The realization of the plan has to be continuously followed so in case of outstanding difference (that can be also positive or negative) we can immediately take appropriate action.
Fortunately Excel is always at hand!
The Excel template will make the analysis quicker by the help of a very simple but effective solution.
Now let’s talk about the technical background of the variance analysis report!
Everyone knows that the economic analysis is an accepted method of comparison and without it evaluation of economic activity are unimaginable.
Business procedures are very rarely examined by themselves and in practice most of the analysis is done by choosing bases of comparison.
Basically the plan-actual comparison seems as a very simple activity, 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 of economic occurrence changes in a time-period.
The comparison can be done in a timeframe (for example in a quarter of a year or in one year), or also regarding the same point of time.
This is the case in the comparison of one or more type of product or service data. Another example can be the characteristics of the organizational departments within the company.
Variance Analysis Report
Excel is definitely able to create the variance analysis report. The usage of the drop-down box is basically unavoidable; it is an inseparable part of the modern report.
There are three components can be chosen from the list. By choosing the Plan, we only see the data of the plan in monthly breakdown.
Here we don’t pay any attention to the actual and the differences between them, or to be exact we don’t display them at the moment.
If we chose the Actual option than we have a chance to 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. As you can see on the picture if you chose the Variance switch we portrayed the differences with red and green color.
We have created these with a use of the dynamic method. Minimal programming skill is needed to create the currently introduced template.
If you would like to know the code, than 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 of 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!
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See you again next week! You can find the downloadable Excel template here.