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Flux Analysis Template

Flux analysis is a close control, not a reporting exercise. Its job is to catch errors before the numbers leave accounting: a missed accrual, a misclassified invoice, a reversal that did not run. That only works if the thresholds are set in advance and the explanations say why a number moved, not just that it moved. This template flags variances automatically and sets a standard for commentary. Pair it with our software category guides to see which tools fit your team. Once you have a shortlist, check the vendor profiles and the finance glossary for unfamiliar terms, then use our head-to-head comparisons before your first demo.

Built for: Controller, Accounting manager, FP&A analyst, CFO

What you get

A month-over-month flux table with $ variance, % variance, and an automatic explain flag
A budget-to-actual flux table using the same thresholds
A threshold settings block so the rule is agreed before the numbers are seen
Commentary standards with weak and strong examples

+1 more inside

How to use it

1
Set thresholds before the close. Agree a dollar and percentage threshold with your controller or auditors, plus a hard dollar ceiling above which every variance is explained. The template default is: explain if the change is at least $25,000 and at least 10%, or at least $100,000 regardless of percentage. Replace these with your own.
2
Paste trial balance data by account. Enter prior month (or budget) in column B and current month in column C. The $ variance, % variance, and flag columns calculate automatically.
3
Explain every flagged line. Write commentary for each line marked Explain. Use the standards below: driver, amount, whether it recurs, and whether any entry is needed.
4
Correct errors before publishing. If an explanation reveals an error, such as a missing accrual, post the correction and rerun the flux. Do not explain an error as a variance.

What's inside

Here's a preview. Unlock the free download to get all 5 sections (4 more below).

Month-over-month flux

$ variance = current - prior. % variance = $ variance / prior. Flag = Explain if |$| >= $100,000, or if |$| >= $25,000 and |$| >= 10% of prior. For expense accounts, a positive variance means higher spend.

Account	Prior month (Jul)	Current month (Aug)	$ variance	% variance	Flag	Commentary
4010 Subscription revenue	1,795,500.00	1,842,000.00	46,500.00	2.6%
6010 Salaries	1,210,000.00	1,322,500.00	112,500.00	9.3%	Explain	14 new hires started Aug 1 per headcount plan; recurring

Calculated in the CSV: $ variance = current - prior; % variance = $ variance / prior (format as %); Explain if |$ variance| >= 100,000, or >= 25,000 and >= 10% of prior.

4 more sections in the full template

Plus the branded PDF and editable CSV.

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Frequently asked questions

What is flux analysis in accounting?

Flux analysis compares account balances between periods, or against budget, and explains significant changes. It is used during the close to detect errors and in reporting to explain results. Auditors also use it as an analytical procedure.

What threshold should I use for flux analysis?

There is no single standard. A common practice combines a dollar threshold with a percentage threshold, so small accounts with large percentage swings and large accounts with small percentage swings are both handled sensibly, plus a hard dollar ceiling. Set it relative to your materiality and agree it with your auditors.

What is the difference between flux analysis and variance analysis?

The terms overlap. Flux analysis usually refers to period-over-period changes in account balances reviewed by accounting during the close. Variance analysis more often refers to actual versus budget or forecast, reviewed by FP&A. This template covers both.

Should flux analysis include the balance sheet?

Yes. Balance sheet flux often catches errors the P&L hides, such as a prepaid balance that grows because amortization stopped, or an accrued liability that never reverses. Review both statements with the same thresholds, or with separate thresholds scaled to balance sheet size.