# Finance Accounting > - Skill: `frank-luongt/finance-accounting-2` (Agent Skill) - Install (CLI): `npx skillmds@latest add frank-luongt/finance-accounting-2` - Raw SKILL.md: https://api.skillmd.com/api/skills/frank-luongt/finance-accounting-2/raw - Safety review: pending - Works with: Claude Code, Claude.ai, OpenAI Codex - Category: Finance & Business - Author: frank-luongt (https://skillmd.com/u/frank-luongt) - Updated: 2026-09-17 - Page: https://skillmd.com/skills/frank-luongt/finance-accounting-2 --- --- name: finance-accounting description: Create journal entries, perform account reconciliation, run variance analysis, and manage financial close processes. Use when recording transactions, reconciling accounts, analyzing budget variances, or executing month-end close procedures. tags: [finance, accounting, reconciliation, financial-close] --- # Finance & Accounting Operations Operational accounting framework for journal entries, reconciliation, variance analysis, and financial close. This skill covers the day-to-day accounting operations — not strategic financial planning (which is the CFO agent's domain). ## Use this skill when - Recording transactions as journal entries (accruals, prepayments, depreciation) - Performing bank, intercompany, or subledger-to-GL reconciliation - Analyzing budget vs. actual variances with root cause decomposition - Executing or designing month-end / quarter-end close processes - Preparing financial statement review checklists - Building close calendars and sign-off workflows ## Do not use this skill when - Optimizing cloud infrastructure costs (use `cost-optimization`) - Building startup financial projections or models (use `startup-financial-modeling`) - Making strategic capital allocation decisions (use CFO agent directly) - Conducting investor-facing financial analysis (use `startup-business-analyst-financial-projections`) ## Instructions 1. **Identify the accounting task** — journal entry, reconciliation, variance analysis, or close process. 2. **Apply the appropriate template** from the sections below. 3. **Follow the verification steps** — every entry needs supporting documentation. 4. **For close processes** — use the Month-End Close Checklist with day-by-day sequencing. --- ## Journal Entry Templates ### Standard Entry Structure ``` Date: [YYYY-MM-DD] Entry #: [JE-XXXX] Prepared by: [Name] Approved by: [Name] Description: [Clear description of transaction] | Account Code | Account Name | Debit ($) | Credit ($) | |-------------|-------------|-----------|------------| | XXXX-XX | [Account] | X,XXX.XX | | | XXXX-XX | [Account] | | X,XXX.XX | | **Total** | | **X,XXX.XX** | **X,XXX.XX** | Supporting documentation: [Reference #, invoice, contract, etc.] ``` ### Common Entry Types | Type | Debit | Credit | Frequency | Notes | |------|-------|--------|-----------|-------| | **Revenue Recognition** | Deferred Revenue | Revenue | Monthly/per performance obligation | ASC 606 five-step model | | **Accrued Expense** | Expense | Accrued Liabilities | Month-end | Reverse next period | | **Prepaid Expense** | Prepaid Asset | Cash/AP | At payment | Amortize over benefit period | | **Depreciation** | Depreciation Expense | Accumulated Depreciation | Monthly | Per asset schedule | | **Payroll Accrual** | Salary Expense | Accrued Payroll | Per pay period | Include benefits, taxes | | **Bad Debt** | Bad Debt Expense | Allowance for Doubtful Accounts | Quarterly | % of AR aging | | **Intercompany** | IC Receivable (Entity A) | IC Payable (Entity B) | As incurred | Must net to zero | --- ## Account Reconciliation Process ### Reconciliation Workflow | Step | Action | Output | |------|--------|--------| | 1 | Pull system balances (GL, bank, subledger) | Raw data extract | | 2 | Match transactions (automated where possible) | Matched items list | | 3 | Identify unmatched items | Exception list | | 4 | Investigate exceptions | Root cause for each | | 5 | Book adjusting entries if needed | JE references | | 6 | Document and sign off | Reconciliation worksheet | ### Reconciliation Worksheet Template ```markdown ## Account Reconciliation — [Account Name] — [Period] **Account #:** [XXXX-XX] **Preparer:** [Name] | **Reviewer:** [Name] **GL Balance:** $[X] | **Source Balance:** $[X] ### Reconciling Items | # | Description | Amount | Status | Age (days) | |---|-------------|--------|--------|------------| | 1 | | $ | Open/Resolved | | | 2 | | $ | Open/Resolved | | **Adjusted GL Balance:** $[X] **Adjusted Source Balance:** $[X] **Difference:** $[X] (must be $0 or within threshold) ### Sign-off - [ ] Preparer: [Name] — [Date] - [ ] Reviewer: [Name] — [Date] ``` ### Reconciliation Types | Type | GL Account vs. | Frequency | Common Issues | |------|---------------|-----------|---------------| | **Bank Reconciliation** | Bank statement | Monthly | Outstanding checks, deposits in transit | | **Intercompany** | Counterparty entity GL | Monthly | Timing differences, FX | | **Subledger-to-GL** | AR/AP subledger | Monthly | Posting lag, unprocessed invoices | | **Suspense Account** | $0 target | Weekly | Unclassified transactions | | **Fixed Assets** | Asset register | Quarterly | Disposals not recorded | --- ## Variance Analysis Framework ### Budget vs. Actual Analysis ```markdown ## Variance Report — [Period] | Line Item | Budget | Actual | Variance ($) | Variance (%) | Favorable? | Root Cause | |-----------|--------|--------|-------------|-------------|------------|------------| | Revenue | | | | | | | | COGS | | | | | | | | Gross Profit | | | | | | | | OpEx — S&M | | | | | | | | OpEx — R&D | | | | | | | | OpEx — G&A | | | | | | | | EBITDA | | | | | | | ``` ### Price / Volume / Mix Decomposition For revenue or COGS variances, decompose into three components: | Component | Formula | Interpretation | |-----------|---------|---------------| | **Price Variance** | (Actual Price - Budget Price) x Actual Volume | Did we charge more/less than planned? | | **Volume Variance** | (Actual Volume - Budget Volume) x Budget Price | Did we sell more/less than planned? | | **Mix Variance** | Residual (Total - Price - Volume) | Did the product/customer mix shift? | ### Materiality Thresholds | Variance Size | Action Required | |--------------|-----------------| | <5% and <$10K | Note only — no investigation needed | | 5-10% or $10-50K | Brief explanation in variance commentary | | 10-20% or $50-100K | Detailed root cause analysis | | >20% or >$100K | Management review and corrective action plan | --- ## Month-End Close Checklist ### Close Calendar (5-Day Close Target) | Day | Activities | Owner | Status | |-----|-----------|-------|--------| | **Day 1** | Cutoff: close AP/AR sub-ledgers, post final revenue entries | Accounting | | | **Day 1** | Bank reconciliation for all accounts | Treasury | | | **Day 2** | Accruals: payroll, benefits, utilities, professional fees | Accounting | | | **Day 2** | Intercompany reconciliation and netting | Accounting | | | **Day 3** | Depreciation/amortization entries | Accounting | | | **Day 3** | Prepaids and deferred revenue amortization | Accounting | | | **Day 3** | Inventory valuation adjustments (if applicable) | Operations | | | **Day 4** | Variance analysis (budget vs. actual) | FP&A | | | **Day 4** | Financial statement draft (BS, IS, CF) | Controller | | | **Day 4** | Flux analysis — flag items >10% or >$50K movement | Controller | | | **Day 5** | Management review and sign-off | CFO | | | **Day 5** | Final adjustments and close period in ERP | Controller | | ### Revenue Recognition (ASC 606 — 5-Step Summary) | Step | Question | Output | |------|----------|--------| | 1. Identify contract | Is there an enforceable agreement? | Contract list | | 2. Identify obligations | What distinct goods/services are promised? | Performance obligation list | | 3. Determine price | What is the transaction price? | Price allocation | | 4. Allocate price | How is price allocated to each obligation? | Standalone selling prices | | 5. Recognize revenue | When is each obligation satisfied? | Revenue schedule | --- ## Financial Statement Review Checklist | Check | Description | Status | |-------|-------------|--------| | **Balance Sheet** | Assets = Liabilities + Equity | | | **Trial Balance** | Debits = Credits | | | **Cash Reconciliation** | Cash per GL = Cash per bank (after reconciling items) | | | **Revenue Reasonableness** | Compare to prior period, budget, and run-rate | | | **Expense Reasonableness** | No unusual spikes or drops vs. prior period | | | **Intercompany Elimination** | IC balances net to zero in consolidation | | | **Deferred Revenue** | Matches contract schedules | | | **AR Aging** | No unexpected increase in 90+ day buckets | | | **AP Aging** | No past-due items without explanation | | --- ## Common Mistakes - **Posting to wrong periods** — ensure cutoff dates are strictly enforced; late entries distort month-over-month comparisons - **Failing to reverse accruals** — accruals booked in period N must be reversed in period N+1 to avoid double-counting - **Reconciliation without investigation** — clearing reconciling items without understanding root cause hides errors - **Ignoring materiality thresholds** — investigating every $50 variance wastes time; focus on material items - **Manual spreadsheet-based close** — error-prone and not auditable; use ERP close management tools where possible - **Revenue recognition shortcuts** — ASC 606 requires analysis per contract; don't apply blanket recognition policies --- ## Additional Resources - Related skills: `cost-optimization` (cloud cost management), `startup-financial-modeling` (early-stage projections) - FASB ASC 606 — Revenue from Contracts with Customers - Close management best practices (BlackLine, FloQast methodologies)