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AI analytics for finance and FP&A teams

A monthly pack says a cost centre is over budget; the question that follows is always why, and the answer usually takes an analyst two days. AI analytics reads the ledger, budget, forecast and headcount files, builds the bridge, and answers the head of FP&A in figures that sum to the variance.

Ask it in your own words

These are the questions finance teams ask. Each one maps to a measure our tools compute from your files. The AI model chooses the measure and explains the result; the arithmetic is done by our code, and every total is checked.

The questionThe measure behind itWhat comes back
What is driving my cost increase?Cost bridgeThe change split into headcount, rates and pay, volume, timing, one-offs and other, summing exactly, with the cost centres behind each.
Which cost centres are over budget, and on what?Cost centres over thresholdCost centres over the threshold with the largest line and the owner.
How much of the variance is timing?Timing in the varianceItems that landed in a different month and will reverse, so the real variance is separate.
Where is headcount above plan?Headcount against planActual against planned FTE by cost centre and type, and whether the cost is numbers or rates.
Will the year land?Run rateTrailing run rate against the full-year budget, by function.
Who forecasts high or low, every month?Forecast accuracy and biasSigned forecast error by cost centre, with the consistent ones.

A conversation, with the figures

Every figure below was computed by a tool from the rows and checked before it was shown. The lines sum; the percentages match; each line opens to the rows that make it.

What is driving the cost increase this quarter?

Cost is up £1.7m on the prior year, split across 3 drivers that sum to the change. Rates and pay explains £655k, 38% of it, and 580,000 of the total is timing that reverses.

Rates and pay£655k38% of the total
Timing£580k34% of the total
Volume-driven£467k27% of the total
The 3 lines sum to£1.7m0 unexplained

Which cost centres are behind rates and pay?

3 cost centres account for £620k of the £655k Rates and pay effect, 95% of it. Two are contractor rate rises in Technology; the third is a pay award landing a month early.

Platform engineering£290kcontractor day rates up 11%
Data and analytics£210kcontractor day rates up 9%
Customer operations£120kpay award landed in month 2, budgeted month 3
These 3 are£620k95% of Rates and pay

What goes in the pack, and who is spoken to?

The bridge with timing shown separately, so the real variance is the smaller figure. The Technology business partner takes the rate rises to the cost centre owners; Customer operations is timing and needs no conversation.

Business partner, TechnologyReview contractor rates with Platform engineering and DataThis week
Head of FP&APut the bridge in the monthly pack with timing separateMonthly
Cost centre ownersConfirm the one-offs flagged this monthBefore close
What is driving my cost increase?Which cost centres are over budget, and on what?How much of the variance is timing?Where is headcount above plan?

The measures behind the answers

Each measure has one formula, one source and one meaning. They are computed per cost centre and account and in total, and every one carries an identity that must hold before it is shown.

MeasureFormulaFromWhat it tells you
Variance to budget and forecastActual − budget; actual − latest forecast, by cost centre and accountLedger actuals; budget; forecastWhere the month landed against both plans
Cost bridgeChange = headcount + rates and pay + volume-driven + timing + one-offs + other, summing exactlyLedger; headcount; timing and one-off filesWhat is driving the cost increase
Headcount against planActual FTE − planned FTE, by cost centre and type, with average costHeadcount fileWhere people cost is above plan, and whether it is numbers or rates
Timing in the varianceSum of items landing in a different month from budget that reverseTiming items fileHow much of the variance is not real
One-off itemsSum of items finance has flagged as non-recurringOne-off items fileWhat will not repeat next month
Run rateTrailing three-month actual × 4, against the full-year budgetLedger actuals; budgetWhether the year will land, on current spend
Forecast accuracy and biasActual − forecast by month, signed and absolute, by cost centreForecast versions; ledgerWhich cost centres forecast high or low, consistently
Cost centres over thresholdCost centres more than x percent over budget, with the largest lineLedger; budgetWho to talk to this month
Vendor varianceActual − budget by vendor, with new and lost vendorsLedger with vendorWhich suppliers drove the change
Programme positionBudget, committed, actual and estimate at completion by workstreamProgramme budget; purchase orders; actuals; forecastWhether a large programme will land, and where the overrun sits

What the AI model does, and what our tools do

The AI model chooses the measure

From your question and the measures declared for finance and FP&A teams, the model picks the one that answers it, and the period and comparison the question implies.

Our tools do the arithmetic

Deterministic code reads the rows, computes the measure, and checks the identities below. The same question on the same data gives the same answer, every time.

The AI model explains, and cites

The AI model writes the sentence around the result, naming the cost centre or account behind it. It states no figure that is not in the result, and every figure links to its rows.

The identities that must hold

BridgeEnd − start − Σ lines = 0; a residual is shown as its own line, never hidden
VarianceActual − budget = real variance + timing + one-offs
HeadcountActual FTE = planned FTE + variance; cost = FTE × average cost
ProgrammeEAC = actual + committed + estimate to complete; contingency drawn + remaining = contingency at start

What it reads

The exports finance teams already produce. Column names are mapped once and the mapping is reused. A file is the way in; scheduled delivery and connections to your systems come with the plan, and every source is listed here.

  • Ledger actuals
  • Budget
  • Forecast
  • Headcount
  • Timing and one-off files
  • Timing items file
  • One-off items file
  • Ledger with vendor
  • Programme budget
  • Purchase orders
  • Actuals

Who owns each answer

An answer is a list with an owner and a cadence, or it is a chart nobody works.

MeasuresOwnerCadence
Variance and bridgeHead of FP&A; finance business partnersMonthly
Headcount against planBusiness partners with HRMonthly
Programme positionProgramme finance leadMonthly, weekly near gates

Questions finance teams ask about AI analytics

How does the cost bridge work?

The change in cost between two periods is split into headcount, rates and pay, volume-driven accounts, timing items, one-offs and other, from the ledger, the headcount file and the items finance has flagged. The lines sum exactly to the change; a residual is shown as its own line. Each line opens to the cost centres and rows that make it.

What is timing, and why separate it?

A cost that landed in a different month from its budget and will reverse: an invoice a month early, an accrual released late. It inflates this month's variance and deflates next month's. Kept separate, the real variance is visible and the conversation with the cost centre owner is about the right number.

What files does an FP&A team need?

Ledger actuals by cost centre and account, the budget and the latest forecast phased by month, the headcount file with planned and actual FTE, and the timing and one-off items finance already tracks. For a programme, add the budget by workstream, purchase orders and the estimate at completion.

Does it work for a large programme?

Yes. Budget, committed, actual and estimate at completion are computed by workstream and work package, with contingency drawn and remaining, and the bridge from budget to EAC shows where the overrun sits. Every figure reconciles to the purchase order and actuals files.

See it on your data

Bring a few thousand rows. The data map opens next, every column mapped once, and the first question is answered in minutes. Free, in your browser, no account.