How do I install the Statement Preparation skill?

Run npx skillmds@latest add gajetoso/statement-preparation in your terminal (requires Node.js), paste this page's agent-chat prompt into Claude, Cursor, or any MCP-connected agent, or download the SKILL.md file and copy it into your agent's skills directory.

Is Statement Preparation safe to use?

This skill has not completed SkillMD's automated safety review yet. SkillMD never runs a skill's scripts for you; review the SKILL.md before installing.

Which AI agents work with Statement Preparation?

This skill is tagged as working with Claude Code, Claude.ai, OpenAI Codex. SKILL.md is an open format, so most agents that read a skills directory can load it too.

Is Statement Preparation free to use?

Yes. Installing skills from SkillMD is free, and the skill stays under its author's original license.

Who published Statement Preparation?

GAJETOso (@gajetoso) published this skill. Their other Agent Skills are listed on their SkillMD profile.

Statement Preparation by gajetoso — Agent Skill

Name: Statement Preparation
Author: GAJETOso

Statement Preparation

When the user wants to generate a set of financial statements (Balance Sheet, Income Statement, Cash Flow) from a trial balance. Also use when the user mentions "closing the books," "preparing financials," "producing P&L," "generating balance sheet," or "year-end reporting."

GAJETOso 8a0e7dd 7 files · 11.6 KB Updated Sep 17, 2026

File contents

Financial Statement Preparation

You are a Controller. Your goal is to transform a raw Trial Balance into an accurate, compliant set of financial statements.

Initial Assessment

Source Data
- Do we have the full Trial Balance?
- Is it balanced (Debits = Credits)?
Reporting Framework
- IFRS, GAAP, or Tax-basis?
- What is the reporting period?
Adjustments
- Have all month-end accruals and deferrals been recorded?
- Any recent asset disposals or acquisitions?

Preparation Framework

Priority Order

Trial Balance Validation (Checking for balance and classification errors).
Adjusting Journal Entries (Recording depreciation, accruals, prepayments).
Income Statement Generation (Calculating Net Income).
Balance Sheet Generation (Ensuring Assets = Liabilities + Equity).
Cash Flow Statement (Using the indirect method to reconcile cash).

Technical Preparation Steps

1. Mapping the Chart of Accounts

Map every account from the Trial Balance to the correct financial statement line item.

2. The Indirect Cash Flow Method

Start with Net Income.
Add back non-cash expenses (Depreciation/Amortization).
Adjust for changes in working capital (Inventory, AR, AP).

3. Equity Reconciliation

Ensure that Net Income flows into Retained Earnings on the Balance Sheet.

Output Format

Financial Statement Package

1. Income Statement

Revenue, COGS, Expenses, and Net Income for the period.

2. Balance Sheet

Snapshot of Assets, Liabilities, and Equity.

3. Statement of Cash Flows

Operating, Investing, and Financing activities.

4. Notes to the Statements (Brief)

Explanation of major line item variances or unusual items.

Scripts

calculate.py: Deterministic functions for this skill's core computations. Run python3 scripts/calculate.py to self-test; import the functions instead of doing mental math.

References

Indirect Method Guide: Step-by-step indirect cash flow.
Adjusting Entries: Common year-end adjustments.

Related Skills

financial-analysis: To analyze the statements once they are prepared.
audit-checklist: To ensure the preparation process follows internal controls.
automated-reconciliation: To ensure the cash balance on the BS matches the bank.

---name: statement-preparationdescription: When the user wants to generate a set of financial statements (Balance Sheet, Income Statement, Cash Flow) from a trial balance. Also use when the user mentions "closing the books," "preparing financials," "producing P&L," "generating balance sheet," or "year-end reporting."---# Financial Statement PreparationYou are a Controller. Your goal is to transform a raw Trial Balance into an accurate, compliant set of financial statements.## Initial Assessment1. **Source Data** - Do we have the full Trial Balance? - Is it balanced (Debits = Credits)?2. **Reporting Framework** - IFRS, GAAP, or Tax-basis? - What is the reporting period?3. **Adjustments** - Have all month-end accruals and deferrals been recorded? - Any recent asset disposals or acquisitions?---## Preparation Framework### Priority Order1. **Trial Balance Validation** (Checking for balance and classification errors).2. **Adjusting Journal Entries** (Recording depreciation, accruals, prepayments).3. **Income Statement Generation** (Calculating Net Income).4. **Balance Sheet Generation** (Ensuring Assets = Liabilities + Equity).5. **Cash Flow Statement** (Using the indirect method to reconcile cash).---## Technical Preparation Steps### 1. Mapping the Chart of Accounts- Map every account from the Trial Balance to the correct financial statement line item.### 2. The Indirect Cash Flow Method- Start with Net Income.- Add back non-cash expenses (Depreciation/Amortization).- Adjust for changes in working capital (Inventory, AR, AP).### 3. Equity Reconciliation- Ensure that Net Income flows into Retained Earnings on the Balance Sheet.---## Output Format### Financial Statement Package**1. Income Statement**- Revenue, COGS, Expenses, and Net Income for the period.**2. Balance Sheet**- Snapshot of Assets, Liabilities, and Equity.**3. Statement of Cash Flows**- Operating, Investing, and Financing activities.**4. Notes to the Statements** (Brief)- Explanation of major line item variances or unusual items.---## Scripts- [calculate.py](./scripts/calculate.py): Deterministic functions for this skill's core computations. Run `python3 scripts/calculate.py` to self-test; import the functions instead of doing mental math.---## References- [Indirect Method Guide](./references/cash-flow-method.md): Step-by-step indirect cash flow.- [Adjusting Entries](./references/accruals-deferrals.md): Common year-end adjustments.---## Related Skills- **financial-analysis**: To analyze the statements once they are prepared.- **audit-checklist**: To ensure the preparation process follows internal controls.- **automated-reconciliation**: To ensure the cash balance on the BS matches the bank.

Frequently asked questions