Financial Report Generation

Generate formatted financial statements — income statements, balance sheets, cash flow statements — from raw transaction data or trial balance inputs. This skill applies standard accounting presentation, calculates key financial ratios, and produces executive summaries that translate numbers into actionable insights for stakeholders.

Workflow

1. Collect and Validate Financial Data Ingest the source data: trial balance, general ledger exports, or categorized transaction records. Verify that debits equal credits and that the chart of accounts is complete. Identify the reporting period and comparative period (prior quarter or prior year). Flag any suspense account balances or unreconciled items that need resolution before reporting.

2. Apply Accounting Standards and Classify Map accounts to their proper financial statement classification: current vs. non-current assets, current vs. long-term liabilities, revenue vs. other income, operating vs. non-operating expenses. Apply accrual adjustments for prepaid expenses, deferred revenue, depreciation, and accrued liabilities. Ensure revenue recognition follows the applicable standard (ASC 606 for US GAAP or IFRS 15).

3. Generate Financial Statements Produce the three core statements in standard format. The income statement shows revenue through net income with gross profit and operating income subtotals. The balance sheet presents assets, liabilities, and equity with current/non-current breakdowns. The cash flow statement reconciles net income to operating cash flow, then shows investing and financing activities.

4. Calculate Financial Ratios Compute key ratios from the generated statements: gross margin, operating margin, net margin, current ratio, quick ratio, debt-to-equity, return on equity, days sales outstanding, inventory turnover, and free cash flow yield. Compare each ratio to the prior period and flag significant changes (>10% shift).

5. Write Executive Summary