Automated Variance Analysis Writer with Claude and Xero MCP
FP&A & Reporting
Quick Answer
Pull Xero actuals and compare to budget from Google Sheets monthly. Claude writes the variance analysis covering favorable and unfavorable items, likely drivers, and management implications. Ready for review in minutes instead of hours.
The Problem This Solves
Writing variance analysis explanations for each line item in a P&L is time-consuming and formulaic. This workflow produces a consistent, professional variance analysis in minutes, freeing FP&A analysts for higher-value interpretation work.
About This Workflow
Variance analysis writing is one of the most repetitive tasks in FP&A. The numbers change each period but the analytical framework stays the same. This workflow pulls current period actuals and prior period comparatives from Xero MCP, retrieves budget figures from a Google Sheet, calculates variances, and sends everything to Claude with instructions to write a professional variance analysis explaining what drove the results. The output follows a consistent analytical structure that can be customized to your reporting standards.
Tools Required
Step-by-Step Blueprint
Trigger on the 5th of each month
n8nCreate an n8n Schedule trigger on the 5th of each month. Prior month close should be complete and actuals finalized by this date.
Pull current period actuals from Xero MCP
Xero MCPAdd an n8n HTTP node to call Xero MCP and retrieve the prior month P&L actuals at the account level.
Pull prior period for comparison
Xero MCPAdd another n8n HTTP node to retrieve the same period from the prior year and the prior month for period-over-period comparison.
Pull budget from Google Sheets
Google SheetsAdd an n8n Google Sheets node to retrieve the monthly budget for the reporting period. Budget is typically maintained in a spreadsheet model.
Write variance analysis with Claude
ClaudeAdd an n8n Claude node. Send actuals versus budget and prior period comparatives. Instruct Claude to write a structured variance analysis covering: revenue variances by stream, gross margin movement, operating expense variances by department, and net income drivers. Flag items exceeding 5 percent or a material dollar threshold.
Use this prompt →Email variance analysis for review
n8nAdd an n8n Email node to send the variance analysis to the FP&A team for review before inclusion in management reporting. Include the supporting variance table alongside the narrative.
Cost Estimate
n8n Cloud Pro $50/month or self-hosted free. Xero MCP community server free with Xero subscription. Claude API costs minimal for monthly variance runs. Google Sheets free.
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