A Budget Variance Analysis Report, or BVAR is the most concise and comprehensive report for utility management and is an extremely valuable tool for those who manage large buildings or spaces. A BVAR will tell you immediately if your utility bills have gone over budget.
Considering that your energy bill is the single largest expense that directly affects net income from your properties, that’s valuable information.
Once the budget has been created, a BVAR is used to:
- Manage cash flow.
- Confirm operating costs across the year and avoid hikes or spikes to tenants.
- Benchmark based on cost / square foot, consumption / square foot, or your own unit e.g cost / bed (hospital).
Next we compare the benchmark to the actual monthly bill so you can:
- Identify effects on cash flow as early as possible.
- Understand how and why budget variances happen and take appropriate action.
- Re-forecast to the end of your fiscal period to ensure pro-forma income statements are always up-to-date and reflect the most recent changes.
- Report consistently across a portfolio of sites.
For Operations staff this means you can:
- Identify exactly how the weather affects a site’s usage.
- Identify the effect of operational changes.
- Have consistent and immediate access to the status of your budgets.
For Managers, BVAR’s mean you can:
- Save time and staff salaries creating budgets and reporting variances.
- Build a standard reporting system across your entire portfolio of properties through ‘at-your-fingertips’ on-line knowledge of performance against budgeted values.
Having immediate, consistent and detailed reporting on budget deviations allows you to level them out across the year, keep tenants, auditors and shareholders happy and save money. Now that makes sense.
Contact one of our energy consultants today and start saving.