Codexkit Budget Variance Explainer

Procedure

1. Identify the top 3–5 variances by absolute dollar impact.
2. Classify each: favorable or unfavorable.
3. Explain WHY each variance happened in one sentence (driver).
4. Determine if the variance is one-time or recurring.
5. Suggest what action to take for each significant variance.
6. Write a 2-sentence headline summary suitable for an exec email.
7. Produce an action table: driver → impact → owner → action.

Output

• headline summary (2 sentences)
• variance explanation table (line item, variance, driver, one-time/recurring, action)
• recommended talking points for presenting to leadership

Definition of done

• every variance > 5% is explained
• explanations use business language, not accounting jargon
• each significant variance has an owner and recommended action
• a non-finance person can understand the summary without follow-up questions

Examples

• "Explain why our department is $30K over budget this month in plain English."
• "Turn this spreadsheet into talking points for the VP meeting."
• "Our travel spend is 40% over plan — write an explanation and recommended action."

Quality Criteria

• Data sources and assumptions are explicitly stated
• Calculations are reproducible from provided inputs
• Visualizations or tables have clear labels, units, and time ranges
• Caveats and confidence levels are documented for estimates

Verification (4C)

Edge Cases

• Missing or incomplete data — Document gaps and their potential impact on conclusions. Provide ranges instead of point estimates.
• Outliers skewing results — Report with and without outliers. Document the decision to include or exclude.
• Changing data definitions mid-period — Split analysis at the change boundary and note the schema difference.

Changelog

• v1.0.0 — Initial release