A structured variance analysis template that compares actual results to budget for every P&L line item. Includes absolute and percentage variance, RAG status indicators, price/volume decomposition for revenue, and commentary fields for explanations. For a step-by-step guide, read [Building Your First BvA Report](/blog/building-first-bva-report), and learn [how to set smart variance thresholds](/blog/budget-variance-thresholds). Use the [budget variance calculator](/tools/budget-variance-calculator) alongside this template, and see a fully annotated [variance report example](/examples/variance-report-example) for best-practice formatting.
What's included
Template preview
Step by step
Enter or import your approved budget and month-end actual figures for every P&L line item.
The template calculates both absolute (£) and relative (%) variance for each line. Positive variances on revenue are favourable; positive variances on costs are unfavourable.
The template automatically flags variances: green (<5%), amber (5-10%), red (>10%). Adjust thresholds to match your organisation's tolerance.
For each amber or red item, add a brief explanation of the root cause and any corrective action being taken.
Use the summary view for leadership presentations and the detailed view for finance team analysis. Focus discussion on the material variances.
Watch out
Treating all variances equally — focus analysis effort on material items only
Confusing favourable and unfavourable — revenue under budget is unfavourable, cost under budget is favourable
Not decomposing variances into price and volume components for revenue lines
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