Glossary

What is an anomaly flag?

An anomaly flag is a figure that has moved outside its normal range against a fixed rule: revenue moving more than 10% on the month or 15% on the year, a cost line moving more than 25%, a new expense category, cash falling more than 10%, debtor days rising by more than five, a net loss, or current liabilities above current assets. A flag is a prompt for a second look, not a finding that something is wrong.

Also called: Variance flag