What to Expect from Your Accountants: Accountability, Accuracy, and the Power of Variance Analysis

In fast-moving finance environments, leaders often focus heavily on balance sheet reconciliations, reporting deadlines, and closing checklists. But one of the most overlooked tools for building a disciplined and high-performing accounting team is holding staff accountable for understanding the drivers behind P&L movements and not just booking entries.

While it may seem efficient to let junior accountants skip variance explanations as they are “not capable of fully understanding the financials,” the truth is that accountability starts long before the numbers are final. Early variation analysis sets the foundation for accuracy, ownership, and continuous improvement.

Why Accountability Matters in P&L Review

Many teams are trained to reconcile accounts but spend far less time understanding what’s happening within the P&L. This creates a gap: entries get posted, but the underlying story often goes unchecked.

By asking staff to document variance explanations, even simple and high-level ones, you reinforce three critical behaviors:

1. Critical Thinking:

Writing an explanation forces the accountant to think through the movement, not just record it. Is the fluctuation reasonable? Does it align with expectations? Does it indicate an error?

2. Accountability Through Traceability:

When errors surface later, leaders can look back at the variance explanation. If something obvious was missed, it becomes a coaching moment:

“You wrote this explanation, but the movement included an error. That means you didn’t fully review the account activity.”

Over time, this develops stronger habits and raises the accuracy bar.

3. Early Detection of Issues:

Small mistakes caught early prevent bigger problems downstream, especially during audits, lender reviews, or board reporting. Simple variance analysis is often the first line of defense.

Best Practices for Building an Accountable Accounting Culture

Here’s how finance leaders can incorporate accountability without overwhelming the team:

1. Start with a Simple, Repeatable Approach:

The goal isn’t to burden staff, it’s to train their mindset. A straightforward template or two-sentence explanation is often enough. Complexity comes later.

2. Don’t Dismiss the Value of “Preliminary” Financials:

Even when numbers aren’t final, reviewing variances creates a roadmap. It helps the team stay aligned and keeps errors from getting buried in later revisions.

3. Reinforce That Variance Analysis Is a Required Skill:

It’s not busy work. It’s foundational for becoming a well-rounded accountant capable of supporting audits, forecasting, and strategic decision-making.

4. Provide Feedback and Close the Loop:

When explanations miss key points, use it as an opportunity to teach. When they catch something important, acknowledge it. Accountability thrives on feedback.

5. Build a Culture of Ownership, Not Just Compliance:

You don’t want accountants who simply “move numbers around.”

You want accountants who understand the business drivers behind those numbers.

The Bottom Line

High-performing accounting teams aren’t built by checking boxes, instead they are built by instilling accountability, curiosity, and analytical discipline. Asking staff to explain P&L variances, even at a basic level, sets the expectation that their role is more than data entry. It’s about understanding the business, identifying issues, and improving accuracy at every step.

If you want strong financial reporting, clean audits, and a team that grows into true finance partners, don’t skip this step. Accountability isn’t an obstacle, but rather it’s the foundation of excellence.