| name | expense-review |
| description | Review and analyze expenses with categorization, trend analysis, anomaly detection, policy compliance checks, and cost reduction recommendations. TRIGGER when: user says /expense-review, "review expenses", "expense analysis", "spending review", "cost analysis", "expense audit".
|
| argument-hint | [department or cost center] [time period] [focus area] |
| user-invocable | true |
Expense Review
Perform a structured review of organizational expenses to identify trends, anomalies, policy violations, and cost reduction opportunities. This skill produces an actionable expense analysis with clear findings and recommendations.
Step 1 — Scope the Review
Define what is being reviewed and why.
| Parameter | Description | Example |
|---|
| Review Scope | Department, cost center, project, or company-wide | Engineering department |
| Time Period | Period under review | Q4 2025 |
| Comparison Period | Benchmark for trend analysis | Q3 2025 and Q4 2024 |
| Data Source | ERP, expense management tool, GL export | NetSuite GL extract |
| Review Trigger | Routine, audit finding, budget overrun, ad hoc | Quarterly routine review |
| Materiality Threshold | Minimum amount for detailed line-item review | Transactions > $1,000 |
Checklist
Step 2 — Categorize and Normalize Expenses
Ensure every transaction is properly classified before analysis.
Standard Category Taxonomy
| L1 Category | L2 Sub-Category | GL Code Range | Policy Limit |
|---|
| People | Salaries & Wages | 6000–6099 | Per comp plan |
| People | Benefits | 6100–6199 | Per benefits plan |
| People | Contractors & Temps | 6200–6299 | SOW-based |
| Technology | Cloud & Hosting | 6300–6349 | Budget-based |
| Technology | Software Licenses | 6350–6399 | Per-seat approval |
| Technology | Hardware & Equipment | 6400–6449 | $2,500/item limit |
| Facilities | Rent & Utilities | 6500–6549 | Lease terms |
| Facilities | Office Supplies | 6550–6599 | $500/month/dept |
| Travel | Air & Ground Transport | 6600–6649 | Policy class limits |
| Travel | Lodging | 6650–6699 | $250/night cap |
| Travel | Meals & Entertainment | 6700–6749 | $75/person/meal |
| Marketing | Advertising & Media | 6800–6849 | Campaign budget |
| Marketing | Events & Sponsorships | 6850–6899 | Pre-approved only |
| Professional Svcs | Legal | 6900–6929 | Engagement letter |
| Professional Svcs | Accounting & Audit | 6930–6959 | Contract terms |
| Professional Svcs | Consulting | 6960–6999 | SOW required > $10K |
Normalization Steps
- Reclassify any miscategorized transactions.
- Exclude inter-company transfers and reclass entries.
- Normalize for one-time or non-recurring items.
- Convert foreign currency transactions to reporting currency.
- Pro-rate partial-period items for like-for-like comparison.
Step 3 — Trend Analysis
Compare the review period against benchmarks to identify directional changes.
Period-over-Period Comparison
| Category | Prior Period | Current Period | $ Change | % Change | Annualized Run Rate |
|---|
| People | | | | | |
| Technology | | | | | |
| Facilities | | | | | |
| Travel | | | | | |
| Marketing | | | | | |
| Professional Svcs | | | | | |
| Other | | | | | |
| Total | | | | | |
Key Trend Metrics
- Expense-to-Revenue Ratio: Total expenses / total revenue (target: depends on stage and industry).
- Per-Capita Spending: Total non-people expenses / headcount.
- Category Mix Shift: How the percentage allocation across categories has changed.
- Growth Rate vs. Revenue Growth: Are expenses growing faster or slower than revenue?
Step 4 — Anomaly Detection
Flag transactions and patterns that deviate from norms.
Anomaly Detection Rules
| Rule | Logic | Severity |
|---|
| Single transaction spike | Any single transaction > 3x category monthly average | High |
| Category budget overrun | Category spend > 110% of budget | High |
| Duplicate payments | Same vendor, same amount, within 7 days | High |
| Round-number transactions | Exact round amounts ($5,000, $10,000) — possible estimate | Medium |
| Weekend / holiday submissions | Expense submitted on non-business day | Low |
| Split transactions | Multiple transactions just below approval threshold | High |
| Vendor concentration | Single vendor > 30% of category spend | Medium |
| Rapid growth vendor | Vendor spend up > 50% period-over-period | Medium |
| Missing receipts | Transactions above receipt threshold lacking documentation | High |
| Late submissions | Expense submitted > 60 days after incurrence | Medium |
Anomaly Log Template
| # | Date | Vendor | Amount | Category | Anomaly Type | Severity | Resolution |
|---|
| 1 | | | | | | | |
| 2 | | | | | | | |
Step 5 — Policy Compliance Check
Validate expenses against the organization's expense policy.
Compliance Checklist
| Policy Rule | Compliant? | Exceptions Found | Action Required |
|---|
| All expenses have valid receipts | | | |
| Travel booked through approved channel | | | |
| Meals within per-diem limits | | | |
| Hotel rates within policy cap | | | |
| Manager approval obtained before spend | | | |
| Vendor on approved vendor list | | | |
| Contracts signed for engagements > $10K | | | |
| No personal expenses reimbursed | | | |
| Expense reports submitted within 30 days | | | |
| Proper GL coding applied | | | |
Step 6 — Cost Reduction Opportunities
Identify actionable savings based on the review findings.
Opportunity Assessment Template
| # | Opportunity | Category | Est. Annual Savings | Effort | Timeline | Owner |
|---|
| 1 | Renegotiate cloud hosting contract | Technology | $45,000 | Medium | 60 days | |
| 2 | Consolidate software licenses | Technology | $22,000 | Low | 30 days | |
| 3 | Enforce travel policy compliance | Travel | $18,000 | Low | Immediate | |
| 4 | Eliminate unused SaaS subscriptions | Technology | $15,000 | Low | 30 days | |
| 5 | Shift consulting to internal capacity | Prof. Svcs | $60,000 | High | 90 days | |
Prioritization Framework
- Quick Wins: Low effort, immediate savings (< 30 days).
- Medium-Term: Moderate effort, requires negotiation or process change (30–90 days).
- Strategic: High effort, structural change needed (90+ days), but large impact.
Output Format
## Expense Review — [Scope] — [Period]
### 1. Executive Summary
- Total spend: $X (change vs. prior period)
- Key findings (3-5 bullets)
- Total identified savings opportunity: $X
### 2. Spend Overview
[Category breakdown table with trends]
### 3. Trend Analysis
[Period-over-period comparison; key ratios]
### 4. Anomalies & Exceptions
[Anomaly log with severity and resolution status]
### 5. Policy Compliance
[Compliance checklist with exception details]
### 6. Cost Reduction Recommendations
[Prioritized opportunity list with savings estimates]
### 7. Action Items
[Owner, deadline, expected outcome for each recommendation]
Quality Checklist
Edge Cases
| Scenario | Handling Approach |
|---|
| Incomplete data (missing months) | Flag data gaps; analyze available periods; note confidence limitation |
| Chart of accounts changed mid-period | Map old codes to new taxonomy; document mapping logic |
| Acquisition added new cost centers | Separate acquired entity expenses; analyze organic vs. inorganic trends |
| Currency volatility skewing comparisons | Show constant-currency comparison alongside reported figures |
| Shared services / cost allocations | Review allocation methodology; ensure drivers are current and fair |
| COVID or force-majeure period in baseline | Exclude distorted periods or use 2019 as normalized baseline |
