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Public preview

Monthly variance review

Which budget and prior-period variances actually need a decision?

Calculate monthly dollar and percentage variances, then organize timing, volume, price, mix, classification, and data-quality hypotheses for review.

Inputs

  • Monthly actuals
  • Budget
  • Prior-period actuals

Outputs

  • Material variances
  • Possible driver categories
  • Review questions

Checks performed

  • Account mapping consistency
  • Dollar and percentage variance
  • Small-denominator warning

Guided synthetic example

See the check from input to decision

July overhead finished above budget even though total revenue was close to plan.

This is the operating model we use at Level. The percentages are estimated shares of the work in a typical review. Actual effort varies with data quality, complexity, and the issue found.

1

Start with the source records

About 15% of work
AccountActualBudgetVariance
Software$18,400$12,000+$6,400
Vehicle expense$9,200$10,000-$800
Insurance$14,500$14,000+$500
2

Run the deterministic check

About 20% of work

Calculate dollar and percentage variance, suppress immaterial noise, and flag large percentages caused by small budget denominators.

3

Surface the flagged result

About 10% of work

Needs review

Software expense is $6,400, or 53%, above budget and explains most of the overhead miss.

4

Use recorded finance judgment to analyze possible reasons

About 25% of work

At Level, we record the review logic, known explanations, and questions our finance professionals use in this situation. AI applies that documented human judgment to organize the most plausible reasons, without pretending it knows which reason is true.

Possible reasons to investigate

The variance could reflect a new annual contract, miscoding, headcount-driven licenses, an unbudgeted tool, or timing rather than ongoing overspend.

5

Make the final human judgment

About 20% of work

A Level finance professional validates the source evidence, challenges the AI-assisted analysis, and decides which explanation is supported.

Which vendors created the variance?
Is the expense recurring or timing-related?
Was the budget or classification wrong?
6

Make the operating decision

About 10% of work

Trace the software transactions, identify the owner and renewal terms, then update the forecast or correct the classification.

Use this system

Start with the example, then inspect the structure

  1. Download the invented input and expected output.
  2. Replace one field at a time with a safe test value.
  3. Compare the result with the expected structure.
  4. Have a finance professional review every exception before acting.

MCP preview

run_synthetic_example {"slug":"monthly-variance-review"}

Human review is part of the system

This check organizes evidence and surfaces exceptions. A person with finance domain expertise still needs to interpret the result, validate the source records, and discuss the operating decision.

Open source does not mean open client data. We publish reusable finance tools, checks, templates, and playbooks. Client records, workpapers, credentials, communications, and private configurations remain confidential.