financial-statements

by anthropic

Generate multi-period income statements, balance sheets, and cash flow statements with variance analysis and GAAP compliance. Supports monthly, quarterly, annual, and year-to-date reporting periods with prior-period and prior-year comparisons Includes materiality thresholds, variance decomposition (volume, price, mix, timing effects), and investigation narratives for flagged items Provides GAAP presentation guidance (ASC 220/210/230) covering revenue disaggregation, stock-based compensation,... npx skills add https://github.com/anthropics/knowledge-work-plugins --skill financial-statements Download ZIPGitHub22.3k

/financial-statements

If you see unfamiliar placeholders or need to check which tools are connected, see CONNECTORS.md.

Important: This command assists with financial statement workflows but does not provide financial advice. All statements should be reviewed by qualified financial professionals before use in reporting or filings.

Generate financial statements with period-over-period comparison and variance analysis. The workflow below walks through income statement generation; balance sheet and cash flow statement reference formats, GAAP presentation requirements (ASC 220/210/230), and common period-end adjustments are included as supporting reference material.

Workflow

1. Gather Financial Data

If ~~erp or ~~data warehouse is connected:

• Pull trial balance or income statement data for the specified period

• Pull comparison period data (prior period, prior year, budget/forecast)

• Pull account hierarchy and groupings for presentation

If no data source is connected:

Connect ~~erp or ~~data warehouse to pull financial data automatically. You can also paste trial balance data, upload a spreadsheet, or provide income statement data for analysis.

Prompt the user to provide:

• Current period revenue and expense data (by account or category)

• Comparison period data (prior period, prior year, and/or budget)

• Any known adjustments or reclassifications

2. Generate Income Statement

Present in standard multi-column format:

INCOME STATEMENT
Period: [Period description]
(in thousands, unless otherwise noted)

 Current Prior Variance Variance Budget Budget
 Period Period ($) (%) Amount Var ($)
 -------- -------- -------- -------- -------- --------
REVENUE
 Product revenue $XX,XXX $XX,XXX $X,XXX X.X% $XX,XXX $X,XXX
 Service revenue $XX,XXX $XX,XXX $X,XXX X.X% $XX,XXX $X,XXX
 Other revenue $XX,XXX $XX,XXX $X,XXX X.X% $XX,XXX $X,XXX
 -------- -------- -------- -------- --------
TOTAL REVENUE $XX,XXX $XX,XXX $X,XXX X.X% $XX,XXX $X,XXX

COST OF REVENUE
 [Cost items] $XX,XXX $XX,XXX $X,XXX X.X% $XX,XXX $X,XXX
 -------- -------- -------- -------- --------
GROSS PROFIT $XX,XXX $XX,XXX $X,XXX X.X% $XX,XXX $X,XXX
 Gross Margin XX.X% XX.X%

OPERATING EXPENSES
 Research & development $XX,XXX $XX,XXX $X,XXX X.X% $XX,XXX $X,XXX
 Sales & marketing $XX,XXX $XX,XXX $X,XXX X.X% $XX,XXX $X,XXX
 General & administrative $XX,XXX $XX,XXX $X,XXX X.X% $XX,XXX $X,XXX
 -------- -------- -------- -------- --------
TOTAL OPERATING EXPENSES $XX,XXX $XX,XXX $X,XXX X.X% $XX,XXX $X,XXX

OPERATING INCOME (LOSS) $XX,XXX $XX,XXX $X,XXX X.X% $XX,XXX $X,XXX
 Operating Margin XX.X% XX.X%

OTHER INCOME (EXPENSE)
 Interest income $XX,XXX $XX,XXX $X,XXX X.X%
 Interest expense ($XX,XXX) ($XX,XXX) $X,XXX X.X%
 Other, net $XX,XXX $XX,XXX $X,XXX X.X%
 -------- -------- --------
TOTAL OTHER INCOME (EXPENSE) $XX,XXX $XX,XXX $X,XXX X.X%

INCOME BEFORE TAXES $XX,XXX $XX,XXX $X,XXX X.X%
 Income tax expense $XX,XXX $XX,XXX $X,XXX X.X%
 -------- -------- --------

NET INCOME (LOSS) $XX,XXX $XX,XXX $X,XXX X.X% $XX,XXX $X,XXX
 Net Margin XX.X% XX.X%

3. Variance Analysis

For each line item, calculate and flag material variances.

Variance Calculation

For each line item, calculate:

• Dollar variance: Current period - Prior period (or current period - budget)

• Percentage variance: (Current - Prior) / |Prior| x 100

• Basis point change: For margins and ratios, express change in basis points (1 bp = 0.01%)

Materiality Thresholds

Define what constitutes a "material" variance requiring investigation. Common approaches:

• Fixed dollar threshold: Variances exceeding a set dollar amount (e.g., $50K, $100K)

• Percentage threshold: Variances exceeding a set percentage (e.g., 10%, 15%)

• Combined: Either the dollar OR percentage threshold is exceeded

• Scaled: Different thresholds for different line items based on their size and volatility

Example thresholds (adjust for your organization):

Line Item Size Dollar Threshold Percentage Threshold

$10M $500K 5% $1M - $10M $100K 10% < $1M $50K 15%

Variance Decomposition

Break down total variance into component drivers:

• Volume/quantity effect: Change in volume at prior period rates

• Rate/price effect: Change in rate/price at current period volume

• Mix effect: Shift in composition between items with different rates/margins

• New/discontinued items: Items present in one period but not the other

• One-time/non-recurring items: Items that are not expected to repeat

• Timing effect: Items shifting between periods (not a true change in run rate)

• Currency effect: Impact of FX rate changes on translated results

Investigation and Narrative

For each material variance:

• Quantify the variance ($ and %)

• Identify whether favorable or unfavorable

• Decompose into drivers using the categories above

• Provide a narrative explanation of the business reason

• Assess whether the variance is temporary or represents a trend change

• Note any actions required (further investigation, forecast update, process change)

4. Key Metrics Summary

KEY METRICS
 Current Prior Change
Revenue growth (%) X.X%
Gross margin (%) XX.X% XX.X% X.X pp
Operating margin (%) XX.X% XX.X% X.X pp
Net margin (%) XX.X% XX.X% X.X pp
OpEx as % of revenue XX.X% XX.X% X.X pp
Effective tax rate (%) XX.X% XX.X% X.X pp

5. Material Variance Summary

List all material variances requiring investigation:

Line Item Variance ($) Variance (%) Direction Preliminary Driver Action [Item] $X,XXX X.X% Unfav. [If known] Investigate

6. Output

Provide:

• Formatted income statement with comparisons

• Key metrics summary

• Material variance listing with investigation flags

• Suggested follow-up questions for unexplained variances

• Offer to drill into any specific variance with /flux

Balance Sheet Reference Format

ASSETS
Current Assets
 Cash and cash equivalents
 Short-term investments
 Accounts receivable, net
 Inventory
 Prepaid expenses and other current assets
Total Current Assets

Non-Current Assets
 Property and equipment, net
 Operating lease right-of-use assets
 Goodwill
 Intangible assets, net
 Long-term investments
 Other non-current assets
Total Non-Current Assets

TOTAL ASSETS

LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
 Accounts payable
 Accrued liabilities
 Deferred revenue, current portion
 Current portion of long-term debt
 Operating lease liabilities, current portion
 Other current liabilities
Total Current Liabilities

Non-Current Liabilities
 Long-term debt
 Deferred revenue, non-current
 Operating lease liabilities, non-current
 Other non-current liabilities
Total Non-Current Liabilities

Total Liabilities

Stockholders' Equity
 Common stock
 Additional paid-in capital
 Retained earnings (accumulated deficit)
 Accumulated other comprehensive income (loss)
 Treasury stock
Total Stockholders' Equity

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

Cash Flow Statement Reference Format (Indirect Method)

CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)
Adjustments to reconcile net income to net cash from operations:
 Depreciation and amortization
 Stock-based compensation
 Amortization of debt issuance costs
 Deferred income taxes
 Loss (gain) on disposal of assets
 Impairment charges
 Other non-cash items
Changes in operating assets and liabilities:
 Accounts receivable
 Inventory
 Prepaid expenses and other assets
 Accounts payable
 Accrued liabilities
 Deferred revenue
 Other liabilities
Net Cash Provided by (Used in) Operating Activities

CASH FLOWS FROM INVESTING ACTIVITIES
 Purchases of property and equipment
 Purchases of investments
 Proceeds from sale/maturity of investments
 Acquisitions, net of cash acquired
 Other investing activities
Net Cash Provided by (Used in) Investing Activities

CASH FLOWS FROM FINANCING ACTIVITIES
 Proceeds from issuance of debt
 Repayment of debt
 Proceeds from issuance of common stock
 Repurchases of common stock
 Dividends paid
 Payment of debt issuance costs
 Other financing activities
Net Cash Provided by (Used in) Financing Activities

Effect of exchange rate changes on cash

Net Increase (Decrease) in Cash and Cash Equivalents
Cash and cash equivalents, beginning of period
Cash and cash equivalents, end of period

Common Adjustments and Reclassifications

Period-End Adjustments

• Accruals: Record expenses incurred but not yet paid (AP accruals, payroll accruals, interest accruals)

• Deferrals: Adjust prepaid expenses, deferred revenue, and deferred costs for the period

• Depreciation and amortization: Book periodic depreciation/amortization from fixed asset and intangible schedules

• Bad debt provision: Adjust allowance for credit losses based on aging analysis and historical loss rates

• Inventory adjustments: Record write-downs for obsolete, slow-moving, or impaired inventory

• FX revaluation: Revalue foreign-currency-denominated monetary assets and liabilities at period-end rates

• Tax provision: Record current and deferred income tax expense

• Fair value adjustments: Mark-to-market investments, derivatives, and other fair-value items

Reclassifications

• Current/non-current reclassification: Reclassify long-term debt maturing within 12 months to current

• Contra account netting: Net allowances against gross receivables, accumulated depreciation against gross assets

• Intercompany elimination: Eliminate intercompany balances and transactions in consolidation

• Discontinued operations: Reclassify results of discontinued operations to a separate line item

• Equity method adjustments: Record share of investee income/loss for equity method investments

• Segment reclassifications: Ensure transactions are properly classified by operating segment