Financial Statements

Financial Statements — Statement Builder

"Build the statements."

When to use

• A trial balance needs to become statements — "build a P&L and balance sheet from this TB".
• A raw transaction export needs rolling up — "here's the ledger dump, make me financials".
• Statements exist but fail internal checks — "my balance sheet is off by 3,412 — find it".
• Someone external asked for financials — "the investor wants Q2 statements by Friday".
• You need a statement-level base before deeper work — flux commentary, audit prep, a close pack.

Workflow

1. Ingest with code. Load the pasted table or CSV/XLSX (pandas or equivalent — never mental math on long columns). Standardize columns, normalize debit/credit signs, and confirm the trial balance foots: total debits = total credits. If it does not, stop and report the gap before building anything on top.
2. Map to a standard chart. Classify every account — Assets, Liabilities, Equity, Revenue, COGS, Operating expenses, Other income/expense, Tax — with current vs non-current splits for balance sheet lines. Every judgment mapping is recorded as an assumption.
3. Build the P&L. Revenue → COGS → gross profit → opex by category → operating income → other items → tax → net income, with subtotals and margins as % of revenue.
4. Build the balance sheet. Current and non-current sections; roll period net income into retained earnings; present total assets against total liabilities + equity.
5. Build the cash flow (indirect). Start at net income; add back non-cash items (depreciation, amortization, write-offs); adjust for working-capital deltas (AR, inventory, prepaids, AP, accruals); then investing and financing; land on net change in cash.
6. Run tie-outs in code, not by eye: (a) balance sheet balances; (b) P&L net income equals net income in the equity roll-forward; (c) cash flow ending cash equals balance sheet cash; (d) every statement subtotal re-foots from the mapped trial balance.
7. Scan for anomalies. Contra-normal balances (credit AR, debit revenue), hard swings vs prior period when one is provided, suspicious round numbers, unmapped orphans. Each gets a note and a suggested action.
8. Deliver. Fill the output template; when the user wants artifacts, write statements-<period>.md and/or statements-<period>.xlsx alongside the source data.

Output format

# Financial Statements — <Entity> — <Period>

## Income statement
| Line | Amount | % of revenue |
|------|-------:|-------------:|
| Revenue | | |
| COGS | | |
| **Gross profit** | | |
| Operating expenses (by category) | | |
| **Operating income** | | |
| Other income/(expense) | | |
| Tax | | |
| **Net income** | | |

## Balance sheet
| Line | Amount |
|------|-------:|
| Current assets | |
| Non-current assets | |
| **Total assets** | <A> |
| Current liabilities | |
| Non-current liabilities | |
| Equity (incl. period NI <N>) | |
| **Total liabilities + equity** | <A> |

## Cash flow (indirect)
Operating: NI <N> + non-cash <> + working capital Δ <> = <>
Investing: <> | Financing: <>
Net change in cash <Δ> → Ending cash <C>

## Tie-out checks
- TB foots: Dr <D> = Cr <D> — PASS/FAIL
- Balance sheet balances — PASS/FAIL
- NI → retained earnings — PASS/FAIL
- Ending cash ties across statements — PASS/FAIL

## Mapping & assumptions
- <account> → <category> — <why>

## Anomalies
- <item>: <what looks off> → <suggested action>

Quality bar

• Every computation runs in code on the actual data; every subtotal re-foots.
• All four tie-out checks executed with PASS/FAIL shown — no silent passes.
• Every account mapped; every judgment mapping listed under assumptions.
• One sign convention, stated once, applied everywhere.
• Anomalies surfaced with suggested actions, never absorbed into totals.
• Cash flow reconciles to the actual change in cash — no plug.

Example

Invocation: "Here's tb-2026-06.xlsx — build June financials." Produced: June P&L, balance sheet, and indirect cash flow with all four tie-outs passing; a 42-account mapping table with 3 judgment calls listed as assumptions; one anomaly — a credit balance in AR flagged as a likely unapplied customer payment, with a proposed reclass entry.

Decision support, not accounting advice — material figures belong with your accountant/auditor.