| name | financial-analysis-agent |
| description | Financial analysis skill for AI agents. Covers variance analysis, cash flow forecasting, month-end close automation, CFO commentary generation, 13-week cash flow dashboards, budget vs actual analysis, and financial statement review. Built by accounting professionals for agents that need to produce defensible financial outputs. Do NOT use for tax preparation, audit opinions, or regulatory filings โ those require specialized compliance skills. |
| license | MIT |
| metadata | {"openclaw":{"emoji":"๐ฐ"}} |
Financial Analysis Agent
A comprehensive financial analysis skill that enables AI agents to produce defensible, CFO-ready financial outputs. Every technique here is grounded in standard accounting practice (US GAAP / IFRS compatible) and designed for agents operating on real financial data.
When to Use
- Monthly/quarterly financial close cycles
- Variance analysis on budget vs actual results
- Cash flow forecasting and 13-week rolling dashboards
- Generating CFO commentary and board-ready narratives
- Ratio analysis for lending covenants or investor reporting
- AR/AP aging analysis and collections prioritization
- Bank reconciliation pattern matching
When NOT to Use
- Tax return preparation or tax advisory (use a tax compliance skill)
- Audit opinions or attestation work (requires human CPA sign-off)
- Regulatory filings (SEC, state filings โ requires compliance review)
- Valuation work (DCF, comps โ requires a valuation-specific skill)
- Payroll processing or HR-related financial work
1. Variance Analysis Methodology
Variance analysis decomposes the difference between budget and actual into price, volume, and mix components.
Price Variance
Measures the impact of actual price differing from budgeted price, holding volume constant.
Price Variance = (Actual Price - Budget Price) ร Actual Volume
Example:
Budget: 1,000 units @ $50 = $50,000
Actual: 1,000 units @ $53 = $53,000
Price Variance = ($53 - $50) ร 1,000 = $3,000 Unfavorable (cost) or Favorable (revenue)
Volume Variance
Measures the impact of actual volume differing from budgeted volume, at budgeted price.
Volume Variance = (Actual Volume - Budget Volume) ร Budget Price
Example:
Budget: 1,000 units @ $50 = $50,000
Actual: 1,100 units @ $50 = $55,000
Volume Variance = (1,100 - 1,000) ร $50 = $5,000 Favorable (revenue)
Mix Variance
When multiple products exist, mix variance isolates the impact of selling a different proportion than planned.
Mix Variance = (Actual Mix% - Budget Mix%) ร Actual Total Volume ร Budget Margin
Three-Way Reconciliation
Always reconcile: Total Variance = Price Variance + Volume Variance + Mix Variance
If the three don't sum to the total, you have a calculation error. Never present unreconciled variances.
Materiality Thresholds
| Metric | Threshold | Action |
|---|
| Revenue line item | >5% or >$10K | Requires written explanation |
| Expense line item | >10% or >$5K | Requires written explanation |
| Net income impact | >2% | Requires CFO commentary |
| Balance sheet item | >$25K | Requires reconciliation |
Adjust thresholds based on entity size. A $2M company uses different thresholds than a $200M company.
2. Cash Flow Forecasting (13-Week Rolling)
The 13-week cash flow forecast is the standard tool for liquidity management. It covers one full quarter on a weekly basis.
Structure
Week โ W1 W2 W3 W4 ... W13 Total
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Opening Cash 100K 112K 108K 95K XXK 100K
INFLOWS
Collections 50K 45K 55K 40K XXK XXX
Other Income 2K 1K 3K 2K XXK XXX
Total Inflows 52K 46K 58K 42K XXK XXX
OUTFLOWS
Payroll (20K) โ (20K) โ XXK XXX
Rent (5K) โ โ โ XXK XXX
Vendors (10K) (12K) (8K) (15K) XXK XXX
Debt Service โ (5K) โ โ XXK XXX
Other (5K) (3K) (3K) (4K) XXK XXX
Total Outflows (40K) (20K) (31K) (19K) XXK XXX
Net Cash Flow 12K (4K) (13K) 23K XXK XXX
Closing Cash 112K 108K 95K 118K XXK XXX
Min Balance Req 50K 50K 50K 50K 50K 50K
Surplus/(Deficit)62K 58K 45K 68K XXK XXX
Collection Assumptions
Build collection curves from historical data:
Invoice Terms Collection Pattern
โโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโ
Net 30 Month 1: 15%, Month 2: 70%, Month 3: 12%, Bad debt: 3%
Net 15 Month 1: 80%, Month 2: 17%, Bad debt: 3%
COD Month 1: 97%, Bad debt: 3%
Forecast Accuracy Tracking
Every week, compare last week's forecast to actual:
Forecast Accuracy = 1 - |Actual - Forecast| / |Forecast|
Target: >90% accuracy on 1-week forecast, >80% on 4-week
Red Flags
- Closing cash below minimum balance requirement in any week
- Three consecutive weeks of declining cash
- Collections falling below 85% of forecast
- Concentration: any single customer >25% of weekly inflows
3. Month-End Close Checklist
A disciplined 10-step close process. Target: complete within 5 business days of month-end.
The 10 Steps
Step Task Owner Day Verification
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1 Cut off AR/AP AR/AP D+1 Last invoice # matches
2 Bank reconciliation Cash D+1 All items <30 days
3 Record accruals GL D+2 Accrual schedule signed
4 Record depreciation/amortization GL D+2 Fixed asset register ties
5 Intercompany eliminations GL D+3 IC balances net to zero
6 Revenue recognition review Rev D+3 ASC 606 checklist complete
7 Inventory/COGS reconciliation Ops D+3 Physical vs book <2%
8 Prepare trial balance GL D+4 Debits = Credits
9 Variance analysis FP&A D+4 All material items explained
10 Management review & sign-off CFO D+5 Signed close package
Accrual Checklist
Common accruals that get missed:
Journal Entry Standards
Every journal entry must include:
- Date
- Debit account(s) with amount
- Credit account(s) with amount
- Description/memo explaining the entry
- Supporting documentation reference
- Preparer and approver
Example:
Date: 2026-02-28
DR 6100 - Professional Services $15,000
CR 2100 - Accrued Expenses $15,000
Memo: Accrue Feb legal fees per engagement letter #2026-041
Support: Email from counsel confirming Feb activity
Prepared: Agent | Approved: [CFO Name]
4. CFO Commentary Templates
CFO commentary answers three questions: What changed? Why? What should we do?
Revenue Commentary Template
## Revenue: $X.XM vs Budget $X.XM (โ/โ X.X%)
**What changed:**
- [Product/Service line] revenue was $XXK [above/below] budget
- [Volume/Price/Mix] was the primary driver
**Why:**
- [Root cause โ be specific: lost customer, delayed deal, new contract, seasonal]
- [Secondary cause if applicable]
**What to do:**
- [Action item 1 with owner and deadline]
- [Action item 2 with owner and deadline]
**Outlook:**
- [Forward-looking statement for next period]
- [Risk/opportunity to flag]
Expense Commentary Template
## Operating Expenses: $X.XM vs Budget $X.XM (โ/โ X.X%)
**What changed:**
- [Expense category] was $XXK [over/under] budget
- [One-time vs recurring classification]
**Why:**
- [Root cause โ hiring timing, vendor price increase, project delay, etc.]
**What to do:**
- [If over: mitigation plan or approval to exceed]
- [If under: whether savings are permanent or timing]
Cash Position Commentary
## Cash Position: $X.XM (โ/โ $XXK from prior month)
**Key movements:**
- Operating cash flow: $XXK [positive/negative]
- Collections: $XXK received vs $XXK billed (XX% collection rate)
- Major payments: [List any >$25K individual payments]
**Liquidity outlook:**
- Runway: XX months at current burn rate
- Covenants: [In compliance / approaching threshold]
- Next major cash event: [Date and description]
5. Budget vs Actual Analysis
Report Structure
Actual Budget Var $ Var % Prior Yr YoY %
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Revenue
Product A 450K 500K (50K) -10.0% 380K +18.4%
Product B 320K 300K 20K +6.7% 290K +10.3%
Services 180K 200K (20K) -10.0% 150K +20.0%
Total Revenue 950K 1,000K (50K) -5.0% 820K +15.9%
COGS (380K) (400K) 20K -5.0% (340K) +11.8%
Gross Profit 570K 600K (30K) -5.0% 480K +18.8%
Gross Margin 60.0% 60.0% โ โ 58.5% +1.5pp
Operating Expenses
Salaries (250K) (240K) (10K) +4.2% (200K) +25.0%
Marketing (60K) (80K) 20K -25.0% (50K) +20.0%
G&A (45K) (50K) 5K -10.0% (40K) +12.5%
Total OpEx (355K) (370K) 15K -4.1% (290K) +22.4%
EBITDA 215K 230K (15K) -6.5% 190K +13.2%
EBITDA Margin 22.6% 23.0% -0.4pp โ 23.2% -0.6pp
Waterfall Analysis
For board presentations, decompose the variance into a waterfall:
Budget EBITDA $230K
Revenue shortfall (50K) โ Volume: (30K), Price: (15K), Mix: (5K)
COGS favorability 20K โ Material costs lower than expected
Salary overage (10K) โ Hired 2 weeks earlier than planned
Marketing savings 20K โ Campaign delayed to next month
G&A savings 5K โ Office lease negotiation
Actual EBITDA $215K
6. Ratio Analysis
Liquidity Ratios
| Ratio | Formula | Healthy Range | Red Flag |
|---|
| Current Ratio | Current Assets / Current Liabilities | 1.5 - 3.0 | < 1.0 |
| Quick Ratio | (Cash + Receivables) / Current Liabilities | 1.0 - 2.0 | < 0.5 |
| Cash Ratio | Cash / Current Liabilities | 0.5 - 1.0 | < 0.2 |
| Working Capital | Current Assets - Current Liabilities | Positive | Negative trend |
Profitability Ratios
| Ratio | Formula | Notes |
|---|
| Gross Margin | Gross Profit / Revenue | Compare to industry benchmarks |
| Operating Margin | Operating Income / Revenue | Exclude one-time items |
| Net Margin | Net Income / Revenue | After all charges |
| EBITDA Margin | EBITDA / Revenue | Most comparable across companies |
| ROE | Net Income / Avg Equity | Should exceed cost of equity |
| ROA | Net Income / Avg Assets | Asset efficiency measure |
Leverage Ratios
| Ratio | Formula | Covenant Typical | Warning |
|---|
| Debt/Equity | Total Debt / Total Equity | < 2.0x | > 3.0x |
| Debt/EBITDA | Total Debt / EBITDA | < 3.0x | > 4.0x |
| Interest Coverage | EBITDA / Interest Expense | > 3.0x | < 2.0x |
| Fixed Charge Coverage | (EBITDA - CapEx) / (Interest + Principal) | > 1.2x | < 1.0x |
Efficiency Ratios
| Ratio | Formula | Target |
|---|
| DSO (Days Sales Outstanding) | (AR / Revenue) ร Days | < Payment terms |
| DPO (Days Payable Outstanding) | (AP / COGS) ร Days | Match or exceed DSO |
| DIO (Days Inventory Outstanding) | (Inventory / COGS) ร Days | Industry-specific |
| Cash Conversion Cycle | DSO + DIO - DPO | Lower is better |
7. Aging Analysis
Accounts Receivable Aging
Customer Current 1-30 31-60 61-90 90+ Total % of AR
โโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโ
Acme Corp 25,000 10,000 5,000 โ โ 40,000 26.7%
Beta LLC 15,000 8,000 โ 3,000 โ 26,000 17.3%
Gamma Inc 20,000 โ โ โ 12,000 32,000 21.3%
All Others 30,000 15,000 5,000 2,000 โ 52,000 34.7%
โโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโ
Total 90,000 33,000 10,000 5,000 12,000 150,000 100%
% of Total 60.0% 22.0% 6.7% 3.3% 8.0% 100%
Reserve Rate 0% 0% 5% 25% 50%
Reserve Amount โ โ 500 1,250 6,000 7,750
Collection Priority Matrix
| Bucket | Action | Frequency | Escalation |
|---|
| Current | Thank-you / relationship | Monthly | None |
| 1-30 past due | Friendly reminder email | Weekly | None |
| 31-60 past due | Phone call + formal letter | 2x/week | AR Manager |
| 61-90 past due | Demand letter + payment plan | Daily | Controller |
| 90+ past due | Legal review + reserve | Daily | CFO |
Accounts Payable Aging
Mirror the AR structure but optimize for:
- Early payment discounts (2/10 Net 30 = 36.7% annualized return)
- Cash flow timing (pay on last day of terms, not before)
- Vendor relationship management (strategic vendors get priority)
8. Bank Reconciliation Patterns
Standard Reconciliation Format
Bank Balance per Statement (2/28/2026) $125,432.18
ADD: Deposits in Transit
2/27 - Customer payment #4521 8,500.00
2/28 - Wire transfer (pending) 15,000.00
23,500.00
LESS: Outstanding Checks
Check #3041 (1/15) - Vendor payment (2,300.00)
Check #3055 (2/20) - Rent (5,000.00)
Check #3058 (2/25) - Supplies (450.00)
(7,750.00)
LESS: Bank Errors
(None this period) 0.00
Adjusted Bank Balance $141,182.18
Book Balance per GL (2/28/2026) $141,682.18
LESS: Bank Charges
Monthly service fee (35.00)
Wire fee (25.00)
ADD: Interest Earned
February interest 12.00
LESS: NSF Checks
Customer ABC - returned check (452.00)
Adjusted Book Balance $141,182.18
DIFFERENCE $0.00 โ RECONCILED
Stale Items Investigation
Any reconciling item older than 30 days requires investigation:
| Age | Item Type | Action |
|---|
| 30-60 days | Outstanding check | Contact payee, confirm receipt |
| 60-90 days | Outstanding check | Void and reissue if needed |
| 90+ days | Outstanding check | Void, reverse entry, escheatment review |
| 30+ days | Deposit in transit | Investigate with bank, possible misposting |
9. Financial Statement Review Checklist
Before releasing any financial statement, verify:
Balance Sheet
Income Statement
Cash Flow Statement
Analytical Review
