You overspent. But what does that actually mean?
Maybe it was just higher volume. Maybe it was a pricing error that compounded quietly for weeks. Maybe it wasn’t a problem at all — just a misaligned assumption.
A $200K overrun might signal poor planning or smarter growth. You won’t know until you trace the actual root cause.
That’s what good variance analysis does. It surfaces gaps, and then explains them.
And the difference between a reactive finance team and a strategic one is what they do after that number shows up.
Budget variance is a feedback loop
Variance analysis compares actuals to budget, and shows exactly where reality diverged from plan.
But it’s more than just a report. It’s how modern finance teams:
- Catch drift before it snowballs
- Pinpoint what’s driving change — pricing, volume, timing
- Adjust the model, not just the narrative
Most overruns boil down to three patterns:
- Price variances: Something cost more than expected (vendors, materials, ad CPCs)
- Volume variances: You did more than expected (hired faster, sold more units)
- Fixed cost variances: Overhead shifted (rent, insurance, unexpected expenses)
Each type points to a different next move. Runway helps you identify them instantly, and explore what to do next.
From “what happened?” to “now what?”
In traditional workflows, finance teams spend days wrangling spreadsheets just to explain last month.
With Runway, variance analysis is built into your operating rhythm:
- BvA analysis helps you spot trends and refine forecasts
- Drill-ins help you identify where and when things went off
- Version history keeps your assumptions transparent and auditable
Example: Your CAC jumps 20%. Runway shows it's isolated to one channel. Turns out, CPC spiked after an algorithm change. With this clarity, you reallocate spend and improve payback.
Visuals that tell the real story
You don’t need five tabs and six pivots to explain why the budget changed.
Runway gives you built-in visualizations designed for executive clarity:
- Waterfall charts: Show how each variable adds up to the final result. See the big drivers at a glance.
- Variance heatmaps: Color-coded tables. Red’s bad, green’s good. You spot issues instantly.
- Time series charts: Track trends over time — see if it's an anomaly or a pattern.
It’s not just about pretty dashboards. It’s about clarity — for faster, smarter decisions.
From variance to scenario: “What should we do next?”
Variance analysis should always inform the next step.
Runway connects actuals to modeling in real time. So if your cost base shifts or revenue jumps unexpectedly, you can:
- Run new scenarios — What if we switch vendors? Raise prices? Hire slower?
- Reallocate spend — Double down on what’s working. Cut where it’s not.
- Reforecast — Update the model with today’s actuals, not last month’s guesses.
Example: A retail brand sees eComm 25% over forecast, but stores 15% under. Instead of panicking, they shift budget mid-quarter. Profit improves 8%. That’s not just reporting. That’s strategy.
Make variance management a habit
Most teams treat it as a post-mortem. The best ones bake it into their workflow.
In Runway, you can:
- Spot drift before it spirals
- Create departmental views to make trends accessible to the broader team
- Keep everything current, so every department sees the same numbers
- Make monthly review meetings about fixing root causes, not pointing fingers
- Add notes, visuals, or videos to pages. Include and track follow-up actions
Frequently Asked Questions
What makes variance actionable instead of reactive?
You need three things:
- Live actuals
- Driver-level visibility
- A fast way to simulate next steps
Runway connects all three so you’re not just explaining the past, you’re actually shaping the future.
What gets in the way of good variance analysis?
- Stale data
- Disconnected spreadsheets
- Lack of ownership
Runway fixes this by giving you one source of truth that’s shared, always up-to-date, and contextualized.
How should variance data flow into reforecasting?
Every variance is a signal. If it repeats or compounds, it belongs in your forecast.
Runway lets you update assumptions, run scenarios, and compare outcomes — all in one place.
Which variance metrics matter most?
- Forecast accuracy (% deviation)
- Cost-per-unit deltas (find hidden efficiency wins)
- ROI per variance dollar (see where you’ll get the biggest lift)
- Time-to-resolution — how long it takes your team to act
You can track, benchmark, and share these metrics using Runway.
Book a demo to see it in action.