| name | financial-statement-generation |
| description | Generates the three core financial statements — P&L (income statement), balance sheet, and cash flow statement — with proper formatting, classifications, and period-over-period comparisons. Use when the user mentions financial statement generation, producing a P&L, creating a balance sheet, formatting a cash flow statement, or asks about consolidated financials. |
| version | 2.0.0 |
| author | Crewm8 |
| maintainer | Gokul (github.com/gokulb20) |
| license | MIT |
| homepage | https://crewm8.ai |
| tags | ["cfo","finance","financial-statements","profit-and-loss","balance-sheet","cash-flow"] |
| related_skills | ["monthly-close-process","board-reporting","audit-preparation","cash-forecasting"] |
| inputs_required | ["general-ledger-trial-balance-post-close","prior-period-financial-statements","chart-of-accounts-with-classification","revenue-recognition-schedule","fixed-asset-register","debt-amortization-schedules","equity-rollforward"] |
| deliverables | ["profit-and-loss-statement","balance-sheet","cash-flow-statement","summary-kpi-dashboard","flagged-items-report"] |
| compatible_agents | ["hermes","claude-code","droid","cursor","windsurf","openclaw","openai","generic"] |
Financial Statement Generation
Produce the three core financial statements from the general ledger. Format them for management, board, and investor consumption. Goal: anyone can pick up these statements and understand the company's financial health in under 60 seconds.
Purpose
Financial statements are the primary communication tool for the company's financial health — used by the CEO for decisions, the board for oversight, investors for diligence, and auditors for assurance. This skill transforms a closed trial balance into clear, well-formatted statements with period-over-period comparisons and the KPIs that matter. Without this skill, raw data stays in the accounting system where nobody can act on it.
When to Use
- "Generate the P&L / income statement"
- "Produce the balance sheet"
- "Create a cash flow statement"
- "Give me the financial statements for [period]"
- "Format our financials for the board"
- "Consolidated financial statements"
Inputs Required
- General ledger trial balance (balanced, post-month-end-close)
- Prior period financial statements for comparison
- Chart of accounts with proper departmental and functional classification
- Revenue recognition schedule (deferred revenue rollforward)
- Fixed asset register and depreciation schedule
- Debt amortization schedules
- Equity rollforward and cap table
- Board/investor formatting preferences (KPIs to highlight)
Quick Reference
| Statement | What It Shows | Key Check |
|---|
| P&L (Income Statement) | Revenue, costs, and profit over a period | Include % of revenue and prior period comparison |
| Balance Sheet | Assets, liabilities, and equity at a point in time | Assets = Liabilities + Equity |
| Cash Flow Statement | Sources and uses of cash over a period | Ending cash = balance sheet cash |
| EBITDA | Operating Income + Depreciation + Amortization | Proxy for operating cash flow |
| Net Burn | Net Income (if negative) | Cash consumption rate |
Procedure
- Complete the monthly close (
monthly-close-process).
- Generate the P&L from the income statement accounts.
- Calculate the balance sheet from the ending trial balance.
- Derive the cash flow statement (P&L + BS changes = CF).
- Verify: ending cash on CF = cash on BS.
- Add period-over-period comparisons and % calculations.
- Add KPI summary at the top (revenue, gross margin, EBITDA, net income, cash, burn).
1. Income Statement (P&L)
Format: monthly or quarterly columns, with % of revenue where useful.
[Company Name]
Income Statement
For the [Month/Quarter/Year] Ended [Date]
(USD, Accrual Basis)
Current Month % of Rev Prior Month % of Rev YoY (Same Month)
─────────────────────────────────────────────────────────────────────────────────────────────────────────────
REVENUE
Subscription Revenue $380,000 88% $350,000 89% $210,000
Professional Services $50,000 12% $45,000 11% $30,000
TOTAL REVENUE $430,000 100% $395,000 100% $240,000
COST OF REVENUE
Hosting & Infrastructure $38,000 9% $35,000 9% $22,000
Payment Processing Fees $12,900 3% $11,850 3% $7,200
Customer Support $25,000 6% $24,000 6% $18,000
TOTAL COST OF REVENUE $75,900 18% $70,850 18% $47,200
GROSS PROFIT $354,100 82% $324,150 82% $192,800
OPERATING EXPENSES
Research & Development
Engineering Salaries $145,000 34% $140,000 35% $95,000
Cloud Infrastructure (Dev) $22,000 5% $20,000 5% $14,000
Engineering Tools $8,000 2% $7,500 2% $5,000
Total R&D $175,000 41% $167,500 43% $114,000
Sales & Marketing
Sales Salaries + Commissions $82,000 19% $78,000 20% $52,000
Marketing Salaries $38,000 9% $37,000 9% $25,000
Advertising & Promotion $25,000 6% $20,000 5% $8,000
Total S&M $145,000 34% $135,000 34% $85,000
General & Administrative
Executive Salaries $45,000 10% $44,000 11% $30,000
Finance & Accounting $8,000 2% $7,500 2% $5,000
Legal $12,000 3% $500 0% $3,000
Office & Facilities $6,000 1% $6,000 2% $4,000
Insurance $4,000 1% $4,000 1% $2,000
Other G&A $5,000 1% $4,000 1% $3,000
Total G&A $80,000 19% $66,000 17% $47,000
TOTAL OPERATING EXPENSES $400,000 93% $368,500 94% $246,000
OPERATING INCOME (LOSS) ($45,900) −11% ($44,350) −11% ($53,200)
OTHER INCOME / EXPENSE
Interest Income $8,500 2% $8,200 2% $1,200
Interest Expense ($3,000) −1% ($3,000) −1% $0
Other ($200) 0% $0 0% $0
NET INCOME (LOSS) ($40,600) −9% ($39,150) −10% ($52,000)
Key metrics below the P&L:
- EBITDA = Operating Income + Depreciation + Amortization
- Net Burn = Net Income (if negative)
- Gross Burn = Total Operating Expenses + COGS (excluding revenue-linked costs)
2. Balance Sheet
[Company Name]
Balance Sheet
As of [Date]
(USD)
ASSETS Current Prior Month-End
────────────────────────────────────────────────────────────────────────────────────────
CURRENT ASSETS
Cash & Cash Equivalents $2,847,000 $2,861,200
Accounts Receivable (net) $245,000 $230,000
Prepaid Expenses $48,000 $44,000
Other Current Assets $6,500 $6,500
TOTAL CURRENT ASSETS $3,146,500 $3,141,700
NON-CURRENT ASSETS
Property & Equipment (net) $65,000 $67,000
Security Deposits $15,000 $15,000
Other Assets $0 $0
TOTAL NON-CURRENT ASSETS $80,000 $82,000
TOTAL ASSETS $3,226,500 $3,223,700
LIABILITIES & EQUITY
────────────────────────────────────────────────────────────────────────────────────────
CURRENT LIABILITIES
Accounts Payable $68,000 $72,000
Accrued Expenses $42,000 $38,000
Payroll Tax Payable $18,500 $17,200
Deferred Revenue (current) $185,000 $192,000
Credit Cards Payable $12,000 $15,000
TOTAL CURRENT LIABILITIES $325,500 $334,200
LONG-TERM LIABILITIES
Convertible Notes $500,000 $500,000
Venture Debt $250,000 $250,000
Deferred Revenue (long-term) $80,000 $85,000
TOTAL LONG-TERM LIABILITIES $830,000 $835,000
TOTAL LIABILITIES $1,155,500 $1,169,200
EQUITY
Common Stock $1,000 $1,000
Preferred Stock $500,000 $500,000
Additional Paid-In Capital $4,500,000 $4,500,000
SAFE Instruments (equity-classified) $300,000 $300,000
Accumulated Deficit ($3,230,000) ($3,246,500)
TOTAL EQUITY $2,071,000 $2,054,500
TOTAL LIABILITIES & EQUITY $3,226,500 $3,223,700
Check: Assets = Liabilities + Equity ✓
3. Cash Flow Statement
Use the indirect method (start from net income, adjust for non-cash items):
[Company Name]
Statement of Cash Flows
For the [Period] Ended [Date]
(USD)
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income (Loss) ($40,600)
Adjustments to reconcile net income:
Depreciation & Amortization $3,500
Bad Debt Expense $1,200
Non-cash Interest (SAFE/Note accretion) $1,500
Changes in working capital:
(Increase) / Decrease in AR ($15,000)
(Increase) / Decrease in Prepaid ($4,000)
Increase / (Decrease) in AP ($4,000)
Increase / (Decrease) in Accrued Expenses $4,000
Increase / (Decrease) in Deferred Revenue ($12,000)
Increase / (Decrease) in Payroll Tax Payable $1,300
NET CASH PROVIDED BY (USED IN) OPERATING ($64,100)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of Equipment ($1,500)
NET CASH USED IN INVESTING ($1,500)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from Stock Option Exercises $16,500
SAFE Issuance Proceeds $0
Repayment of Venture Debt ($5,000)
NET CASH PROVIDED BY FINANCING $11,500
NET CHANGE IN CASH ($54,100)
Cash at Beginning of Period $2,861,200
Cash at End of Period $2,807,100
SUPPLEMENTAL DISCLOSURES:
Interest Paid $3,000
Income Taxes Paid $0
Output Format
- P&L (current period + prior period + YoY comparison)
- Balance sheet (current + prior period-end)
- Cash flow statement
- Summary KPI dashboard
- Flagged items: unusual balances, large swings, negative accounts
Done Criteria
The skill is complete when:
- All three statements (P&L, Balance Sheet, Cash Flow) are generated from a closed trial balance.
- Period-over-period comparisons (prior month, YoY) are included with variance percentages.
- % of revenue is shown on the P&L for every line item.
- Ending cash on the cash flow statement ties to cash on the balance sheet.
- KPI summary (revenue, gross margin, EBITDA, net income, cash, burn) is included.
- Any unusual items are flagged for review.
Pitfalls
- Generating statements before the close is complete: drafting financials from an unreconciled trial balance means the numbers will change. Wait until the close checklist is signed off.
- Omitting % of revenue from the P&L: raw dollar amounts without ratio context mislead readers. A $50k legal line item at $5M revenue vs $500k revenue tells entirely different stories.
- Using different classification logic across periods: moving expenses between departments or between COGS and OpEx without restating prior periods destroys comparability.
- Forgetting to verify the cash flow ties to the balance sheet: a cash flow statement whose ending cash doesn't match the balance sheet is invalid. This is the single most common error in manual preparation.
- Presenting non-GAAP metrics without reconciliation: if you show EBITDA or Adjusted Revenue, always include a reconciliation back to GAAP net income. Skipping this invites auditor questions and investor skepticism.
Heuristics
- Always include % of revenue on the P&L: context is everything. $100k in legal spend means something very different at $500k revenue vs $5M revenue.
- Always include prior period comparisons: a single month in isolation is useless.
- Cash flow statement is the truth-teller: a company with great P&L but terrible cash flow is in trouble. The cash flow statement reveals it.
- Balance sheet must balance: sounds obvious, but this is the #1 error in manually prepared statements.
- Accrual basis, always: cash-basis statements have their place, but label them clearly as such.
Edge Cases
- Consolidated statements (parent + subsidiaries): eliminate intercompany transactions and balances.
- Multi-currency: translate foreign subs at the period-end rate for BS, average rate for P&L. Put FX translation adjustments in Other Comprehensive Income.
- Comparative periods for new companies: if the company is < 12 months old, just show "since inception" or monthly from month 1.
Verification
Does the cash flow statement's ending cash balance match the balance sheet? Does every line on the P&L have a % of revenue? Can someone pick up this package and understand the company's financial health in under 60 seconds? If not, the statements need more work.
Example
- "Generate the quarterly financial statements for Q1 2026 — P&L, balance sheet, and cash flow statement with YoY comparisons."
- "We have two subsidiaries in different currencies. Produce consolidated financial statements with proper FX translation."
- "Format our financials for the board deck — include % of revenue, prior quarter comparisons, and a KPI summary at the top."
Linked Skills
- Close the books first →
monthly-close-process
- Format for board →
board-reporting
- Audit support →
audit-preparation
- Cash forecast tie-in →
cash-forecasting
