Variance Analysis: Gain Visibility and Control Over Financial Variances
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In order to proactively identify issues with individual transactions, or even trends that can impact their business, organizations must continuously perform variance analysis.
However, because this process is often manual, it’s generally only completed at the period end; this leaves teams with less of an opportunity to minimize the impact of significant variances. Rather than effectively mitigating the risk of misstatement, fraud, or human error, the lack of timeliness and irregularity of variance analysis processes ends up being more of a hinderance than a help to the business.
Fortunately, Trintech helps automate this process, both accelerating and scaling variance analysis based on the business’ needs; leveraging automation solutions proactively and effectively identifies areas of financial risk without creating extra work for employees. The additional bandwidth provided to your team allows room to craft a proactive business strategy, without interruption to your reconciliation and close activities.
“We have an internal requirement for variance analysis which was slipping through the cracks. Thanks to Trintech, we now have the ability to enforce that requirement. This ensures that the data we receive is complete and correct.”
Why Does Variance Analysis Matter?
To accurately assess spending activities, variance analysis must be conducted to show comparisons. For example, for management to strategically create a new budget, they must have a detailed and timely reporting of previous spending and inherent risks. By automating variance analysis, this information is provided much more quickly and reliably.
“Anytime you do something manually, you expose yourself to risk.”
Automated Risk-Intelligent Variance Analysis with Trintech
Trintech has developed innovative and dynamic risk automation technology which actively controls the risks associated with certifying accurate data while significantly reducing manual tasks. Your Office of Finance is empowered to establish minimum analysis thresholds for when human intervention is required based on specific time periods and configure them within Trintech’s solutions. Risk-intelligent automation then embeds those rules into its comparative review of data coming from each ERP. When the minimum threshold is reached, alerts are sent to the appropriate team member for higher-level analysis.
Trintech’s solutions empower the financial team to reduce spreadsheet dependency and minimize the inherent risks associated with manual tasks, allowing your organization to continuously monitor variances.
Key Benefits of Automated Variance Analysis
- Remove the risk of manual error
- Additional time to calculate significant changes
- Gain real-time visibility into budget trends and provide actionable insights
- Scale the analysis process throughout the period
- Integrate with multiple ERP applications or multiple application instances
- Collect and aggregate comments on variances to enable reporting
“Trintech has equipped us with the tools to succeed today and grow tomorrow. We’re excited to keep optimizing and exploring new ways to leverage the solution for even greater efficiency and risk management.”
Trintech: A Transformative System of Controls
Trintech’s solutions enable integration of all your financial close activities into a single, seamless process. Our unique offerings allow integration of your manual journal entries, balance sheet reconciliations, and high-volume matching with the ongoing capability to automate the significant number of activities that are required for the financial close process.
Combined with a deployment approach that enables your operation to mitigate the risks associated with a change program, Trintech’s solutions become strategic tools in your infrastructure by enabling your organization to evolve into an effective, efficient, and modern operation.
As finance teams work to mitigate the risks of error and fraud while providing real-time reporting to bolster management strategy, they benefit significantly from elevated levels of visibility and control over financial variances.
Written By: Nicole Tallman
