Variance analysis reports are crucial when looking at how a Health lCare Organization is progressing. By being able to see the amount of revenue different departments are bringing in and where there is room for improvement. 'Nhen there are discrepancies from the predicated budget and actual budget the variance analysis report is helpful in showing where and allows administrators to fix the problem before reoccurring. The report includes all factors that go into running a Health Care Organization including labor, expenses and revenue received