Juno Consultants

Variance Analysis

Variance analysis is the quantitative investigation of the difference between actual and planned behavior. This analysis is used to maintain control over a business. The detailed variance analysis allows management to understand why fluctuations occur in its business, and what it can do to change the situation. We can assist in variance analysis which is a follow up step of Budgeting to determine reasons for deviations so that corrective measures can be taken.

Variance analysis is a vital financial management tool used to assess the differences between planned (budgeted) and actual financial performance. By analyzing variances in key metrics such as revenues, expenses, and profits, organizations can identify the root causes of deviations—whether favorable or unfavorable—and take corrective actions where necessary. This process enhances accountability, supports more accurate forecasting, and helps improve budgeting accuracy over time. Variance analysis also enables management to monitor operational efficiency, uncover cost-saving opportunities, and adjust strategies to align with business objectives. Regular and thorough variance analysis is essential for maintaining financial control and driving continuous performance improvement.

FINANCIAL SERVICES