Variance commentary that cites the transactions behind it
Flux commentary is often the last thing done before sign-off, which is why it ends up thin: a number, an arrow, and a note to follow up. The Accounting Agent calculates the variances, filters them against your thresholds, and drafts explanations that point to the specific entries, vendors, and schedules that drove each change.
What the Accounting Agent prepares
- Month-over-month and budget-vs-actual variances for P&L and balance sheet accounts
- Variances broken out by subsidiary, department, class, or custom fields
- Materiality filtering with the percentage and amount thresholds you set, per account where needed
- Drafted explanations that reference the journal entries, vendors, and schedules behind each change
- A flux working paper kept with the close period, including reviewer comments
How it works
- Pull the data. Current and prior period balances come from your ERP, along with your budget.
- Prepare the work in your logic and format. The Accounting Agent applies your thresholds and commentary format. When late entries land, the draft updates.
- Review and approve. You edit the explanations or guide the Accounting Agent to look further, then sign off. The commentary is stored with the period.
What stays in your control
- You set the thresholds and decide which explanations are final
- Edits and sign-offs are recorded on the task
- Every explanation links to the transactions it cites
Standard note
FAQ
What is flux analysis?
Flux analysis compares account balances between periods, or against budget, and explains the significant changes. It is a standard close step and a common auditor request. Thresholds usually combine a percentage change and an amount, so small accounts with large swings don't crowd the review.
Can flux analysis be automated?
The calculation and the first draft of the commentary can be. Ledge's Accounting Agent prepares both, and your team reviews and finalizes the explanations.
How is this different from a reporting tool?
A reporting tool shows that a balance moved. The Accounting Agent drafts the reason, with links to the entries and schedules involved, inside the same close task your team signs off.
