expense-review

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.

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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

• Data extract is complete and reconciles to GL totals
• Chart of accounts / category mapping is current
• Expense policy document is available for reference
• Prior period data is available for comparison
• Any known one-time items are pre-flagged

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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

1. Reclassify any miscategorized transactions.
2. Exclude inter-company transfers and reclass entries.
3. Normalize for one-time or non-recurring items.
4. Convert foreign currency transactions to reporting currency.
5. Pro-rate partial-period items for like-for-like comparison.

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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?

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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

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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

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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.

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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]

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Quality Checklist

• Data reconciles to GL totals within $1 tolerance
• All categories are represented; no "uncategorized" bucket > 2%
• Trend comparison uses like-for-like periods (normalized for one-time items)
• Anomalies are documented with specific transaction detail
• Policy compliance findings reference specific policy sections
• Savings estimates are conservative and methodology is documented
• Every finding has a clear owner and timeline for resolution

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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