What is the purpose of variance analysis in the Workday Record-to-Report process?

Variance analysis plays a crucial role in the Record-to-Report process by comparing actual financial results against budgeted figures. This comparison helps organizations understand how their performance measures up to expectations and allows for the identification of discrepancies or variances. By examining these differences, financial teams can analyze underlying reasons for variations, enabling informed decision-making aimed at optimizing financial performance and resource allocation. It provides insights into both favorable and unfavorable variances, thus contributing to the overall financial management strategy. This analytical approach is essential for ensuring that entities remain aligned with their financial goals and can adjust their strategies accordingly.