From the course: Excel for Accountants
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Variances in Excel - Microsoft Excel Tutorial
From the course: Excel for Accountants
Variances in Excel
- [Instructor] Variance analysis is an incredibly important tool in accounting, and we can do this quickly and effectively using Excel. I'm in the 05_04_Begin Excel file. Now we have here a set of hypothetical financials for a company. We've got the financial assumptions, our income statement, our balance sheet, and our statement of cash flows. We've done this for a five-year period. from 2019 through 2023, and we'll assume these are actual numbers. It's all hypothetical data, but you know, for our purposes, these are the actual values the company had. We've then put together a plan. This plan reflected our expectations for what 2023 would actually look like. So this is the actual 2023, and our plan column is what we thought it would be. Now, we want to go through and we want to do variance analysis. Variance analysis usually takes one of three forms. We have our variance to plan, our variance of actuals to actuals, or historicals, and then our plan growth. And the difference is…
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