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Glossary · Margin intelligence

Revenue variance explained

Revenue variance explained shows whether the differences between operational revenue, invoiced revenue and booked revenue have been accounted for.

FormulaRevenue variance explained = (operational revenue − invoiced revenue) and (invoiced revenue − booked revenue), each with its causes

Operational revenue falls on the work date, invoiced revenue on the invoice date and booked revenue on the booking date. You compare them in pairs, so you see in which step the difference arises.

That way you know three revenue figures describe the same reality.

Why it matters

The board, finance and operations often each quote a different revenue figure. That is not a mistake: they measure at a different moment. Only when the difference is explained does everyone steer on the same number.

Where it goes wrong

Hours worked but not yet invoiced, credit notes and period postings cause the difference. Without an explanation per cause, every difference becomes a discussion.

How Dashly calculates it

Dashly calculates the three revenue figures per month from time registration, invoicing and accounting, and records per KPI which date counts. Before go-live we put the revenue next to your accounting, aiming for a difference below 0.5%.

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