finance

name	finance
promoted_to	business-ops
description	Finance and accounting: journal entries, reconciliation, variance analysis, financial statements, audit support, month-end close, SOX testing.
routing	{"triggers":["finance","journal entry","reconciliation","variance analysis","financial statements","financial audit","month-end close","SOX"],"not_for":"code security audits, vulnerability scanning, or auth-flow reviews (use security-review) — only financial/accounting audit and SOX compliance","category":"business","force_route":false,"pairs_with":["csuite","data-analysis"]}
user-invocable	true

Finance & Accounting

Umbrella skill for finance and accounting workflows. Detects the domain from the user's request, loads the right reference files, and executes. All output is working material for qualified professionals — not financial advice.

Scope: Journal entries, reconciliation, variance analysis, financial statements, audit/SOX support, month-end close. Use csuite for strategic finance decisions, data-analysis for ad-hoc analytics.

---

Mode Detection

Classify into exactly one mode before proceeding.

Mode	Signal Phrases	Reference to Load
JOURNAL ENTRY	book, accrue, accrual, depreciation, prepaid, payroll entry, revenue recognition, deferred revenue, journal entry	references/journal-entries.md
RECONCILIATION	reconcile, bank rec, subledger, GL-to-sub, intercompany, reconciling items, aging	references/reconciliation.md
VARIANCE	variance, flux, budget vs actual, period-over-period, price/volume, waterfall, bridge	references/variance-analysis.md
STATEMENTS	P&L, income statement, balance sheet, cash flow, financial statements, GAAP presentation	references/financial-statements.md
AUDIT/SOX	SOX, control testing, sample selection, workpaper, deficiency, material weakness, ITGC, audit	references/journal-entries.md + references/reconciliation.md
CLOSE	month-end close, close calendar, close checklist, close day, hard close, soft close	references/reconciliation.md + references/journal-entries.md

Always load references/llm-finance-failure-modes.md as a guard rail regardless of mode.

---

Workflow

Phase 1: CLASSIFY

1. Detect mode from user request
2. Load the corresponding reference file(s)
3. Load references/llm-finance-failure-modes.md
4. Confirm scope with user if ambiguous

Phase 2: GATHER

Collect the data needed for the task:

Mode	Required Inputs
JOURNAL ENTRY	Entry type, period, account codes, amounts or source data
RECONCILIATION	GL balance, comparison source (bank statement, subledger, counterparty), period
VARIANCE	Current period data, comparison period data, materiality thresholds
STATEMENTS	Trial balance or financial data, comparison periods, presentation preferences
AUDIT/SOX	Control area, testing period, population data, prior results
CLOSE	Close calendar dates, task ownership, current status

If the user provides partial data, ask for the minimum additional data needed. Do not fabricate account codes, balances, or transaction details.

Phase 3: EXECUTE

Follow the mode-specific workflow from the loaded reference file. Key constraints apply across all modes:

Debit/Credit Rules (always enforce):

Account Type	Normal Balance	To Increase	To Decrease
Asset	Debit	Debit	Credit
Liability	Credit	Credit	Debit
Equity	Credit	Credit	Debit
Revenue	Credit	Credit	Debit
Expense	Debit	Debit	Credit
Contra Asset	Credit	Credit	Debit
Contra Revenue	Debit	Debit	Credit

Verification gates (every journal entry):

• Debits = Credits (balanced entry, no exceptions)
• Account codes come from user data, never invented
• Amounts traced to source calculations
• Period is explicit and correct
• Reversal flag set for accruals

Verification gates (every reconciliation):

• Both sides reconcile to the same adjusted balance
• Every reconciling item is categorized (timing, adjustment, investigation)
• Items aged >60 days flagged for escalation

Verification gates (every variance):

• Decomposition components sum to total variance (verify arithmetic)
• Materiality threshold applied before narrative generation
• Narratives are causal (why), not circular ("revenue was higher due to higher revenue")

Phase 4: VALIDATE

Before presenting output:

1. Arithmetic check: Verify all calculations. Re-derive totals from components. Because LLMs miscalculate, re-check every sum, difference, and percentage (see failure modes reference).
2. Completeness check: All required sections present per the reference file template
3. Anti-hallucination check: No fabricated account numbers, GAAP citations, or standards references. If uncertain about a specific GAAP rule, say so.
4. Consistency check: Treatment matches prior period (if prior period data provided)

Phase 5: DELIVER

Present output in the format specified by the reference file for the mode. Include:

• The working artifact (entry, reconciliation, analysis, statement)
• Supporting calculations
• Items flagged for professional review
• Suggested next steps

---

LLM Failure Modes in Finance

See references/llm-finance-failure-modes.md for the complete failure mode catalog (calculation errors, fabricated standards, materiality misapplication, period errors, account code fabrication). Universal failure modes (hallucination, overconfidence, generic output) are in skills/shared-patterns/llm-domain-failure-modes-base.md.

---

Failure Modes by Mode

Journal Entry Failure Modes

Failure Mode	Why It Fails
Unbalanced entry presented as complete	Violates fundamental accounting equation
Missing reversal flag on accruals	Creates double-counting in the next period
Round-number estimates without calculation basis	Signals fabrication, fails audit
Booking to "Miscellaneous Expense"	Lacks specificity for variance analysis and audit trail
Same person prepares and approves	Violates segregation of duties

Reconciliation Failure Modes

Failure Mode	Why It Fails
Forcing the rec to balance by plugging a number	Hides real differences that may indicate errors or fraud
Carrying items forward indefinitely without investigation	Stale items may represent losses or control failures
Reconciling to an unverified source	Both sides must come from authoritative sources
Skipping intercompany for "immaterial" entities	Intercompany must eliminate to zero in consolidation

Variance Analysis Failure Modes

Failure Mode	Why It Fails
Circular narrative ("revenue is higher because revenue increased")	No causal explanation
"Timing" without specifying what shifted and when it normalizes	Uninvestigable claim
"Various small items" for a material variance	Must decompose until below materiality
Ignoring offsetting variances	Net favorable can hide serious unfavorable components
Missing outlook (one-time vs recurring)	Variance without context is useless for forecasting

Financial Statement Failure Modes

Failure Mode	Why It Fails
Assets not equal to liabilities + equity	Balance sheet does not balance
Mixing functional and nature expense classification	GAAP requires consistency within a statement
Omitting non-cash items in cash flow reconciliation	Indirect method requires all non-cash adjustments
Current/non-current misclassification	Debt maturing within 12 months must be current