frank-luongt/plugins/faos-analyst/skills/finance-accounting

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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.

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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 |

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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

## 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 |

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Variance Analysis Framework

Budget vs. Actual Analysis

## 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 |

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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 |

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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 | |

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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

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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)

<!-- Source: .faos/custom/skills/business/finance-accounting/SKILL.md -->