Percent Variance now Available in Accounting Module!

Looking at the differences on the actual financial results against the budgeted amounts is crucial for businesses. That is why having a variance analysis tool is as equally important in maintaining financial health of your business. To address this need, Connected Business adds up Variance in Percent values to easily interpret financial data accurately and how a specific account code(s) affect your business as a whole.

All your financial statements such as profit and loss, trial balance, cash flow and balance sheets can now be analyzed realtime, meaning all transactions can be included in the analysis as long as they are posted. A very powerful tool in Accounting facets that lets you compare financial statements from any fiscal period.

You can show the percent variance by set it up through the Accounting module > Setup > Preferences. On the Preferences window, tick on the Show Variance as Percentage in the Financial Center checkbox. Save the settings by clicking the OK button.

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When you want to create a variance analysis, you can do so by navigating through the Financial > Financial Center and then the Chart of Accounts window will display. On the View field, you can show what financial statement you want to view. In this example, say we want to get the variance on the Profit and Loss Financial Statement and check on the actual selling expense against the allotted budget you made from the given fiscal period.

You can see the result of the variance in percent as seen in the screenshot below. You can then explore on data mining as you filter different criteria comparing the actual financial results against the budgeted amounts (either from last year, financial year to date, last year to date and many more!)

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You can have a wide variety of analysis on the financial performance of your company on how well or bad they are performing over a given period.

Please take note that budgeted amounts can be configured through the Budget and Transaction tab in the Chart of Account window. If this tab is disabled, make sure to untick the Mark Journal as Read Only in the Preference window of Accounting module. Once this is enabled, you may now set the budget allotted for the said accounts. Save the changes made on the Chart of Accounts.

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Have a great day and I hope this blog helps in analyzing variance on your financial data!

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