A BVAR will show if your energy bill has exceeded its budget and fix cash flow issues before they become significant problems.
The benefits of a BVAR
Once we create the budget, a Budget Variance Analysis Report (BVAR) is used to:
- Manage cash flow.
- Confirm operating costs across the year and avoid price spikes for tenants.
- Benchmark based on cost and consumption per square foot or your unique unit measurement. For example, the cost per bed in a hospital.
Then, we compare the benchmark to the actual monthly bill so you can:
- Identify impacts 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.
Making sense of the energy market
BVAR helps operations and property managers
For Operations staff, BVARs 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, BVARs mean you can:
- Save time and staff salaries by creating budgets and reporting variances.
- Build a standard reporting system across your entire portfolio of properties. You’ll have access to online data on performance against budgeted values.
Having immediate, consistent, and detailed reporting on budget deviations, allows you to level them out throughout the year. As a result, you can keep tenants, auditors, and shareholders happy and save money. Now that makes sense.