financial-report

name	financial-report
description	Generate comprehensive financial reports including P&L statements, balance sheet summaries, cash flow statements, KPI dashboards, and executive commentary. TRIGGER when: user says /financial-report, "generate financial report", "P&L report", "income statement", "financial statements", "board report", "monthly close report".
argument-hint	[report type] [entity] [period]
user-invocable	true

Financial Report

Generate clear, accurate financial reports suitable for leadership, board, or investor audiences. This skill covers income statements, balance sheets, cash flow statements, KPI dashboards, and the narrative commentary that ties the numbers together.

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Step 1 — Define Report Requirements

Clarify what the audience needs before building the report.

Parameter	Description	Example
Report Type	P&L, balance sheet, cash flow, full package, KPI	Full monthly close package
Entity	Legal entity, business unit, or consolidated	Consolidated — all entities
Period	Reporting period	March 2026
Comparison Basis	Budget, prior period, prior year, forecast	Budget + Prior Year
Audience	Board, executive team, investors, department heads	Board of Directors
Level of Detail	Summary, detailed, or drill-down	Summary with appendix detail
GAAP / IFRS	Accounting standard	US GAAP
Deadline	When the report is due	10th business day of month

Checklist

• Month-end close is complete and books are locked
• All accruals, deferrals, and adjustments posted
• Intercompany eliminations processed (if consolidated)
• Revenue recognition reviewed and approved
• Bank reconciliations completed
• Trial balance ties to sub-ledgers

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Step 2 — Income Statement (P&L)

Build the profit and loss statement with variance analysis.

P&L Template

Line Item	Current Period	Budget	Var ($)	Var (%)	Prior Year	YoY (%)
Revenue
Product Revenue
Services Revenue
Other Revenue
Total Revenue
Cost of Revenue
Direct Costs
Hosting / Infrastructure
Customer Support
Gross Profit
Gross Margin %
Operating Expenses
R&D
Sales & Marketing
General & Administrative
Total OpEx
Operating Income (EBIT)
Operating Margin %
Interest Expense
Other Income / (Expense)
Pre-Tax Income
Income Tax

Variance Commentary Rules

• Explain any line item with variance > 5% or > $25K (whichever is smaller).
• Lead with the business reason, not the accounting entry.
• Note if the variance is timing (will reverse) or permanent.

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Step 3 — Balance Sheet Summary

Present the financial position at period end.

Balance Sheet Template

Line Item	Current Period	Prior Period	Change ($)	Change (%)
Assets
Cash & Equivalents
Accounts Receivable (net)
Prepaid Expenses
Other Current Assets
Total Current Assets
Property & Equipment (net)
Intangible Assets
Goodwill
Other Non-Current Assets
Total Assets
Liabilities
Accounts Payable
Accrued Liabilities
Deferred Revenue
Current Portion of Debt
Total Current Liabilities
Long-Term Debt
Other Non-Current Liabilities
Total Liabilities
Equity
Common Stock
Retained Earnings
Other Equity
Total Equity
Total Liabilities + Equity

Key Balance Sheet Ratios

Ratio	Formula	Current	Target / Benchmark
Current Ratio	Current Assets / Current Liabilities		> 1.5
Quick Ratio	(Cash + AR) / Current Liabilities		> 1.0
Debt-to-Equity	Total Debt / Total Equity		< 1.0
Days Sales Outstanding	(AR / Revenue) x Days in Period		< 45 days
Days Payable Outstanding	(AP / COGS) x Days in Period		30–60 days

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Step 4 — Cash Flow Statement

Show how cash moved during the period.

Cash Flow Statement Template

Line Item	Current Period	Prior Period	Budget
Operating Activities
Net Income
+ Depreciation & Amortization
+ Stock-Based Compensation
+/- Changes in Working Capital
Change in Accounts Receivable
Change in Prepaid Expenses
Change in Accounts Payable
Change in Deferred Revenue
Change in Accrued Liabilities
Net Cash from Operations
Investing Activities
Capital Expenditures
Acquisitions
Net Cash from Investing
Financing Activities
Debt Proceeds / (Repayments)
Equity Issuance / (Buybacks)
Net Cash from Financing
Net Change in Cash
Beginning Cash Balance
Ending Cash Balance

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Step 5 — KPI Dashboard

Present the metrics that matter most to the audience.

SaaS / Subscription KPIs

KPI	Current Period	Prior Period	Trend	Target
ARR (Annual Recurring Rev.)
MRR (Monthly Recurring Rev.)
Net New ARR
Gross Revenue Retention
Net Dollar Retention
CAC (Customer Acq. Cost)
LTV (Lifetime Value)
LTV:CAC Ratio				> 3:1
CAC Payback (months)				< 18
Rule of 40 Score				> 40
Burn Multiple				< 2.0

General Business KPIs

KPI	Current Period	Prior Period	Trend	Target
Revenue Growth (YoY)
Gross Margin %
EBITDA Margin %
Free Cash Flow
Headcount
Revenue per Employee
OpEx as % of Revenue

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Step 6 — Executive Commentary

Write the narrative that accompanies the numbers.

Commentary Structure

1. Performance Headline: One sentence summarizing the period (e.g., "Revenue exceeded plan by 8% driven by strong enterprise pipeline conversion").
2. Revenue Commentary: What drove revenue performance; notable deals; pipeline outlook.
3. Margin Commentary: Gross margin trends; OpEx efficiency; any one-time impacts.
4. Cash Position: Cash balance, runway, notable cash events (collections, payments).
5. Key Wins: Major accomplishments, deals closed, milestones hit.
6. Key Risks / Concerns: Items requiring attention; potential headwinds.
7. Outlook: Forward-looking guidance or forecast adjustments.

Commentary Best Practices

• Lead with "so what" — the insight, not the data point.
• Quantify everything ("improved by $50K" not "improved significantly").
• Separate one-time events from ongoing trends.
• Connect financial performance to operational drivers.
• Keep the total commentary to 1–2 pages maximum.

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Output Format

## Financial Report — [Entity] — [Period]

### 1. Executive Summary & Commentary
[1-page narrative with key highlights, risks, and outlook]

### 2. Income Statement
[P&L with budget and prior year variance]

### 3. Balance Sheet
[Condensed balance sheet with key ratio callouts]

### 4. Cash Flow Statement
[Three-section cash flow with ending balance]

### 5. KPI Dashboard
[Relevant KPI table based on business model]

### 6. Variance Analysis
[Detailed explanation of material variances]

### 7. Appendix
- Departmental P&L detail
- Revenue bridge (prior period to current)
- Headcount summary
- Glossary of terms (for board/investor audience)

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Quality Checklist

• Income statement foots correctly (revenue - costs = net income)
• Balance sheet balances (assets = liabilities + equity)
• Cash flow reconciles to balance sheet cash change
• All material variances (> 5% or > $25K) are explained
• KPIs are consistent with the financial statements
• Commentary is factual, forward-looking, and concise
• Report has been reviewed by a second set of eyes
• Formatting is consistent and professional
• Prior period figures match the previously published report

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Edge Cases

Scenario	Handling Approach
Restatement of prior period	Clearly mark restated figures; explain reason; show before/after comparison
Partial period (stub period)	Annualize cautiously; label metrics as "annualized" vs. "actual"
Multi-entity consolidation	Show eliminations line; provide segment-level detail in appendix
Board requesting non-GAAP metrics	Present GAAP first; reconcile to non-GAAP (e.g., adjusted EBITDA)
Late-breaking adjustment after report	Issue an addendum; do not silently revise the published report
First report for a new entity	No prior period comparison available; benchmark against plan or industry