Find the driver before describing the difference
Compare like with like: confirm the period, category, and budget basis; identify the amount of the difference; then determine whether it reflects timing, volume, price, scope, or another driver. Record what is known, what remains uncertain, and whether the expected full-period outlook has changed.
A timing difference may need a period update. A changed recurring cost or scope may need a discussion about the forecast. Neither explanation, by itself, represents an approval.
Worked example: quarterly travel variance
Fictional Northstar Works Q2 figures in USD; compare the Q2 plan with Q2 actuals only.
| Category | Q2 plan | Q2 actual | Difference | Illustrative explanation |
|---|---|---|---|---|
| Team travel | $9,000 | $4,500 | $4,500 under plan | One planned workshop moved to Q3; check whether the full-year trip assumption still holds. |
Distinguish timing from a changed outlook
Timing shift
A planned $4,500 workshop moved from Q2 to Q3. The Q2 difference is real, but the full-year assumption may remain unchanged if the workshop still goes ahead. Check the later-period estimate.
Changed recurring cost
A renewal quote rises from the estimate used in the plan. This may affect more than one period, so update the cost outlook and bring the quote basis and affected periods to finance.