Variance

Variance

Perform variance analysis for "$ARGUMENTS". Compare actual results to budget, forecast, or prior period and explain the differences.

Prerequisites

None — utility skill, run anytime. More effective when financial data is available from Phase 7 (statements) or Phase 4 (trial balance).

Process

1. Establish comparison basis:

• What are we comparing? (actual vs. budget, actual vs. forecast, actual vs. prior period)
• What level of detail? (total entity, department, account, line item)
• What period? (month, quarter, year)

1. Calculate variances:

• For each line item, compute:
• Dollar variance — actual minus budget/forecast
• Percentage variance — dollar variance divided by budget/forecast
• Classify as favorable (F) or unfavorable (U)
• Highlight variances exceeding materiality thresholds

1. Analyze root causes:

• For each significant variance, identify the driver:
• Volume variance (more or fewer units)
• Price variance (higher or lower unit cost/price)
• Mix variance (different product/service mix)
• Timing variance (recognized in a different period)
• One-time items (non-recurring events)
• Quantify each driver where possible

1. Write the artifact to .metapowers/accounting/$ARGUMENTS/variance.md with sections:

• Variance Summary — high-level overview of actual vs. budget with key metrics
• Detailed Variance Table — line-by-line comparison with dollar and percentage variances
• Root Cause Analysis — explanation of significant variances
• Recommendations — actions to address unfavorable variances or capitalize on favorable ones

Output

The variance analysis written to .metapowers/accounting/$ARGUMENTS/variance.md. Present a summary highlighting:

• Top favorable and unfavorable variances
• Key root causes identified
• Recommended actions

Source & license

This open-source skill is cataloged on AgentStack and links to its original source — we do not rehost the code.

• Author: bromso
• Source: bromso/metapowers
• License: MIT
• Homepage: https://bromso.github.io/metapowers/

Install and usage instructions live in the source repository linked above.