Finance & Accounting
Umbrella skill for finance and accounting workflows. Detects the domain from the user's request, loads the right reference files, and executes. All output is working material for qualified professionals — not financial advice.
Scope: Journal entries, reconciliation, variance analysis, financial statements, audit/SOX support, month-end close. Use csuite for strategic finance decisions, data-analysis for ad-hoc analytics.
Mode Detection
Classify into exactly one mode before proceeding.
| Mode |
Signal Phrases |
Reference to Load |
| JOURNAL ENTRY |
book, accrue, accrual, depreciation, prepaid, payroll entry, revenue recognition, deferred revenue, journal entry |
references/journal-entries.md |
| RECONCILIATION |
reconcile, bank rec, subledger, GL-to-sub, intercompany, reconciling items, aging |
references/reconciliation.md |
| VARIANCE |
variance, flux, budget vs actual, period-over-period, price/volume, waterfall, bridge |
references/variance-analysis.md |
| STATEMENTS |
P&L, income statement, balance sheet, cash flow, financial statements, GAAP presentation |
references/financial-statements.md |
| AUDIT/SOX |
SOX, control testing, sample selection, workpaper, deficiency, material weakness, ITGC, audit |
references/journal-entries.md + references/reconciliation.md |
| CLOSE |
month-end close, close calendar, close checklist, close day, hard close, soft close |
references/reconciliation.md + references/journal-entries.md |
Always load references/llm-finance-failure-modes.md as a guard rail regardless of mode.
Workflow
Phase 1: CLASSIFY
- Detect mode from user request
- Load the corresponding reference file(s)
- Load
references/llm-finance-failure-modes.md
- Confirm scope with user if ambiguous
Phase 2: GATHER
Collect the data needed for the task:
| Mode |
Required Inputs |
| JOURNAL ENTRY |
Entry type, period, account codes, amounts or source data |
| RECONCILIATION |
GL balance, comparison source (bank statement, subledger, counterparty), period |
| VARIANCE |
Current period data, comparison period data, materiality thresholds |
| STATEMENTS |
Trial balance or financial data, comparison periods, presentation preferences |
| AUDIT/SOX |
Control area, testing period, population data, prior results |
| CLOSE |
Close calendar dates, task ownership, current status |
If the user provides partial data, ask for the minimum additional data needed. Do not fabricate account codes, balances, or transaction details.
Phase 3: EXECUTE
Follow the mode-specific workflow from the loaded reference file. Key constraints apply across all modes:
Debit/Credit Rules (always enforce):
| Account Type |
Normal Balance |
To Increase |
To Decrease |
| Asset |
Debit |
Debit |
Credit |
| Liability |
Credit |
Credit |
Debit |
| Equity |
Credit |
Credit |
Debit |
| Revenue |
Credit |
Credit |
Debit |
| Expense |
Debit |
Debit |
Credit |
| Contra Asset |
Credit |
Credit |
Debit |
| Contra Revenue |
Debit |
Debit |
Credit |
Verification gates (every journal entry):
- Debits = Credits (balanced entry, no exceptions)
- Account codes come from user data, never invented
- Amounts traced to source calculations
- Period is explicit and correct
- Reversal flag set for accruals
Verification gates (every reconciliation):
- Both sides reconcile to the same adjusted balance
- Every reconciling item is categorized (timing, adjustment, investigation)
- Items aged >60 days flagged for escalation
Verification gates (every variance):
- Decomposition components sum to total variance (verify arithmetic)
- Materiality threshold applied before narrative generation
- Narratives are causal (why), not circular ("revenue was higher due to higher revenue")
Phase 4: VALIDATE
Before presenting output:
- Arithmetic check: Verify all calculations. Re-derive totals from components. Because LLMs miscalculate, re-check every sum, difference, and percentage (see failure modes reference).
- Completeness check: All required sections present per the reference file template
- Anti-hallucination check: No fabricated account numbers, GAAP citations, or standards references. If uncertain about a specific GAAP rule, say so.
- Consistency check: Treatment matches prior period (if prior period data provided)
Phase 5: DELIVER
Present output in the format specified by the reference file for the mode. Include:
- The working artifact (entry, reconciliation, analysis, statement)
- Supporting calculations
- Items flagged for professional review
- Suggested next steps
LLM Failure Modes in Finance
See references/llm-finance-failure-modes.md for the complete failure mode catalog (calculation errors, fabricated standards, materiality misapplication, period errors, account code fabrication). Universal failure modes (hallucination, overconfidence, generic output) are in skills/shared-patterns/llm-domain-failure-modes-base.md.
Failure Modes by Mode
Journal Entry Failure Modes
| Failure Mode |
Why It Fails |
| Unbalanced entry presented as complete |
Violates fundamental accounting equation |
| Missing reversal flag on accruals |
Creates double-counting in the next period |
| Round-number estimates without calculation basis |
Signals fabrication, fails audit |
| Booking to "Miscellaneous Expense" |
Lacks specificity for variance analysis and audit trail |
| Same person prepares and approves |
Violates segregation of duties |
Reconciliation Failure Modes
| Failure Mode |
Why It Fails |
| Forcing the rec to balance by plugging a number |
Hides real differences that may indicate errors or fraud |
| Carrying items forward indefinitely without investigation |
Stale items may represent losses or control failures |
| Reconciling to an unverified source |
Both sides must come from authoritative sources |
| Skipping intercompany for "immaterial" entities |
Intercompany must eliminate to zero in consolidation |
Variance Analysis Failure Modes
| Failure Mode |
Why It Fails |
| Circular narrative ("revenue is higher because revenue increased") |
No causal explanation |
| "Timing" without specifying what shifted and when it normalizes |
Uninvestigable claim |
| "Various small items" for a material variance |
Must decompose until below materiality |
| Ignoring offsetting variances |
Net favorable can hide serious unfavorable components |
| Missing outlook (one-time vs recurring) |
Variance without context is useless for forecasting |
Financial Statement Failure Modes
| Failure Mode |
Why It Fails |
| Assets not equal to liabilities + equity |
Balance sheet does not balance |
| Mixing functional and nature expense classification |
GAAP requires consistency within a statement |
| Omitting non-cash items in cash flow reconciliation |
Indirect method requires all non-cash adjustments |
| Current/non-current misclassification |
Debt maturing within 12 months must be current |
1---2name: finance3description: Finance and accounting workflows — journal entries, reconciliation, variance analysis, financial statements, audit support, month-end close, SOX testing. Use when preparing journal entries, reconciling accounts, analyzing variances, generating statements, or supporting audits.4---5
6# Finance & Accounting
7
8Umbrella skill for finance and accounting workflows. Detects the domain from the user's request, loads the right reference files, and executes. All output is working material for qualified professionals — not financial advice.
9
10**Scope**: Journal entries, reconciliation, variance analysis, financial statements, audit/SOX support, month-end close. Use csuite for strategic finance decisions, data-analysis for ad-hoc analytics.
11
12---
13
14## Mode Detection
15
16Classify into exactly one mode before proceeding.
17
18| Mode | Signal Phrases | Reference to Load |
19|------|---------------|-------------------|
20| **JOURNAL ENTRY** | book, accrue, accrual, depreciation, prepaid, payroll entry, revenue recognition, deferred revenue, journal entry | `references/journal-entries.md` |
21| **RECONCILIATION** | reconcile, bank rec, subledger, GL-to-sub, intercompany, reconciling items, aging | `references/reconciliation.md` |
22| **VARIANCE** | variance, flux, budget vs actual, period-over-period, price/volume, waterfall, bridge | `references/variance-analysis.md` |
23| **STATEMENTS** | P&L, income statement, balance sheet, cash flow, financial statements, GAAP presentation | `references/financial-statements.md` |
24| **AUDIT/SOX** | SOX, control testing, sample selection, workpaper, deficiency, material weakness, ITGC, audit | `references/journal-entries.md` + `references/reconciliation.md` |
25| **CLOSE** | month-end close, close calendar, close checklist, close day, hard close, soft close | `references/reconciliation.md` + `references/journal-entries.md` |
26
27Always load `references/llm-finance-failure-modes.md` as a guard rail regardless of mode.
28
29---
30
31## Workflow
32
33### Phase 1: CLASSIFY
34
351. Detect mode from user request
362. Load the corresponding reference file(s)
373. Load `references/llm-finance-failure-modes.md`
384. Confirm scope with user if ambiguous
39
40### Phase 2: GATHER
41
42Collect the data needed for the task:
43
44| Mode | Required Inputs |
45|------|----------------|
46| JOURNAL ENTRY | Entry type, period, account codes, amounts or source data |
47| RECONCILIATION | GL balance, comparison source (bank statement, subledger, counterparty), period |
48| VARIANCE | Current period data, comparison period data, materiality thresholds |
49| STATEMENTS | Trial balance or financial data, comparison periods, presentation preferences |
50| AUDIT/SOX | Control area, testing period, population data, prior results |
51| CLOSE | Close calendar dates, task ownership, current status |
52
53If the user provides partial data, ask for the minimum additional data needed. Do not fabricate account codes, balances, or transaction details.
54
55### Phase 3: EXECUTE
56
57Follow the mode-specific workflow from the loaded reference file. Key constraints apply across all modes:
58
59**Debit/Credit Rules (always enforce):**
60
61| Account Type | Normal Balance | To Increase | To Decrease |
62|-------------|---------------|-------------|-------------|
63| Asset | Debit | Debit | Credit |
64| Liability | Credit | Credit | Debit |
65| Equity | Credit | Credit | Debit |
66| Revenue | Credit | Credit | Debit |
67| Expense | Debit | Debit | Credit |
68| Contra Asset | Credit | Credit | Debit |
69| Contra Revenue | Debit | Debit | Credit |
70
71**Verification gates (every journal entry):**
72- Debits = Credits (balanced entry, no exceptions)
73- Account codes come from user data, never invented
74- Amounts traced to source calculations
75- Period is explicit and correct
76- Reversal flag set for accruals
77
78**Verification gates (every reconciliation):**
79- Both sides reconcile to the same adjusted balance
80- Every reconciling item is categorized (timing, adjustment, investigation)
81- Items aged >60 days flagged for escalation
82
83**Verification gates (every variance):**
84- Decomposition components sum to total variance (verify arithmetic)
85- Materiality threshold applied before narrative generation
86- Narratives are causal (why), not circular ("revenue was higher due to higher revenue")
87
88### Phase 4: VALIDATE
89
90Before presenting output:
91
921. **Arithmetic check**: Verify all calculations. Re-derive totals from components. Because LLMs miscalculate, re-check every sum, difference, and percentage (see failure modes reference).
932. **Completeness check**: All required sections present per the reference file template
943. **Anti-hallucination check**: No fabricated account numbers, GAAP citations, or standards references. If uncertain about a specific GAAP rule, say so.
954. **Consistency check**: Treatment matches prior period (if prior period data provided)
96
97### Phase 5: DELIVER
98
99Present output in the format specified by the reference file for the mode. Include:
100- The working artifact (entry, reconciliation, analysis, statement)
101- Supporting calculations
102- Items flagged for professional review
103- Suggested next steps
104
105---
106
107## LLM Failure Modes in Finance
108
109See `references/llm-finance-failure-modes.md` for the complete failure mode catalog (calculation errors, fabricated standards, materiality misapplication, period errors, account code fabrication). Universal failure modes (hallucination, overconfidence, generic output) are in `skills/shared-patterns/llm-domain-failure-modes-base.md`.
110
111---
112
113## Failure Modes by Mode
114
115### Journal Entry Failure Modes
116
117| Failure Mode | Why It Fails |
118|-------------|-------------|
119| Unbalanced entry presented as complete | Violates fundamental accounting equation |
120| Missing reversal flag on accruals | Creates double-counting in the next period |
121| Round-number estimates without calculation basis | Signals fabrication, fails audit |
122| Booking to "Miscellaneous Expense" | Lacks specificity for variance analysis and audit trail |
123| Same person prepares and approves | Violates segregation of duties |
124
125### Reconciliation Failure Modes
126
127| Failure Mode | Why It Fails |
128|-------------|-------------|
129| Forcing the rec to balance by plugging a number | Hides real differences that may indicate errors or fraud |
130| Carrying items forward indefinitely without investigation | Stale items may represent losses or control failures |
131| Reconciling to an unverified source | Both sides must come from authoritative sources |
132| Skipping intercompany for "immaterial" entities | Intercompany must eliminate to zero in consolidation |
133
134### Variance Analysis Failure Modes
135
136| Failure Mode | Why It Fails |
137|-------------|-------------|
138| Circular narrative ("revenue is higher because revenue increased") | No causal explanation |
139| "Timing" without specifying what shifted and when it normalizes | Uninvestigable claim |
140| "Various small items" for a material variance | Must decompose until below materiality |
141| Ignoring offsetting variances | Net favorable can hide serious unfavorable components |
142| Missing outlook (one-time vs recurring) | Variance without context is useless for forecasting |
143
144### Financial Statement Failure Modes
145
146| Failure Mode | Why It Fails |
147|-------------|-------------|
148| Assets not equal to liabilities + equity | Balance sheet does not balance |
149| Mixing functional and nature expense classification | GAAP requires consistency within a statement |
150| Omitting non-cash items in cash flow reconciliation | Indirect method requires all non-cash adjustments |
151| Current/non-current misclassification | Debt maturing within 12 months must be current |
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