Financial Analysis Agent

Price Variance = (Actual Price - Budget Price) × Actual Volume

Budget: 1,000 units @ $50 = $50,000
Actual: 1,000 units @ $53 = $53,000
Price Variance = ($53 - $50) × 1,000 = $3,000 Unfavorable (cost) or Favorable (revenue)

Volume Variance = (Actual Volume - Budget Volume) × Budget Price

Budget: 1,000 units @ $50 = $50,000
Actual: 1,100 units @ $50 = $55,000
Volume Variance = (1,100 - 1,000) × $50 = $5,000 Favorable (revenue)

Mix Variance = (Actual Mix% - Budget Mix%) × Actual Total Volume × Budget Margin

Week →           W1      W2      W3      W4    ...   W13     Total
─────────────────────────────────────────────────────────────────
Opening Cash     100K    112K    108K    95K          XXK     100K

INFLOWS
  Collections    50K     45K     55K     40K          XXK     XXX
  Other Income   2K      1K      3K      2K           XXK     XXX
Total Inflows    52K     46K     58K     42K          XXK     XXX

OUTFLOWS
  Payroll        (20K)   —       (20K)   —            XXK     XXX
  Rent           (5K)    —       —       —            XXK     XXX
  Vendors        (10K)   (12K)   (8K)    (15K)        XXK     XXX
  Debt Service   —       (5K)    —       —            XXK     XXX
  Other          (5K)    (3K)    (3K)    (4K)         XXK     XXX
Total Outflows   (40K)   (20K)   (31K)   (19K)        XXK     XXX

Net Cash Flow    12K     (4K)    (13K)   23K          XXK     XXX
Closing Cash     112K    108K    95K     118K         XXK     XXX

Min Balance Req  50K     50K     50K     50K          50K     50K
Surplus/(Deficit)62K     58K     45K     68K          XXK     XXX

Invoice Terms    Collection Pattern
─────────────────────────────────────
Net 30           Month 1: 15%, Month 2: 70%, Month 3: 12%, Bad debt: 3%
Net 15           Month 1: 80%, Month 2: 17%, Bad debt: 3%
COD              Month 1: 97%, Bad debt: 3%

Forecast Accuracy = 1 - |Actual - Forecast| / |Forecast|
Target: >90% accuracy on 1-week forecast, >80% on 4-week

Step  Task                              Owner    Day   Verification
─────────────────────────────────────────────────────────────────────
1     Cut off AR/AP                     AR/AP    D+1   Last invoice # matches
2     Bank reconciliation               Cash     D+1   All items <30 days
3     Record accruals                   GL       D+2   Accrual schedule signed
4     Record depreciation/amortization  GL       D+2   Fixed asset register ties
5     Intercompany eliminations         GL       D+3   IC balances net to zero
6     Revenue recognition review        Rev      D+3   ASC 606 checklist complete
7     Inventory/COGS reconciliation     Ops      D+3   Physical vs book <2%
8     Prepare trial balance             GL       D+4   Debits = Credits
9     Variance analysis                 FP&A     D+4   All material items explained
10    Management review & sign-off      CFO      D+5   Signed close package

Example:
Date: 2026-02-28
DR  6100 - Professional Services    $15,000
    CR  2100 - Accrued Expenses              $15,000
Memo: Accrue Feb legal fees per engagement letter #2026-041
Support: Email from counsel confirming Feb activity
Prepared: Agent | Approved: [CFO Name]

## Revenue: $X.XM vs Budget $X.XM (↑/↓ X.X%)

**What changed:**
- [Product/Service line] revenue was $XXK [above/below] budget
- [Volume/Price/Mix] was the primary driver

**Why:**
- [Root cause — be specific: lost customer, delayed deal, new contract, seasonal]
- [Secondary cause if applicable]

**What to do:**
- [Action item 1 with owner and deadline]
- [Action item 2 with owner and deadline]

**Outlook:**
- [Forward-looking statement for next period]
- [Risk/opportunity to flag]

## Operating Expenses: $X.XM vs Budget $X.XM (↑/↓ X.X%)

**What changed:**
- [Expense category] was $XXK [over/under] budget
- [One-time vs recurring classification]

**Why:**
- [Root cause — hiring timing, vendor price increase, project delay, etc.]

**What to do:**
- [If over: mitigation plan or approval to exceed]
- [If under: whether savings are permanent or timing]

## Cash Position: $X.XM (↑/↓ $XXK from prior month)

**Key movements:**
- Operating cash flow: $XXK [positive/negative]
- Collections: $XXK received vs $XXK billed (XX% collection rate)
- Major payments: [List any >$25K individual payments]

**Liquidity outlook:**
- Runway: XX months at current burn rate
- Covenants: [In compliance / approaching threshold]
- Next major cash event: [Date and description]

                          Actual    Budget    Var $     Var %    Prior Yr   YoY %
─────────────────────────────────────────────────────────────────────────────────
Revenue
  Product A               450K      500K     (50K)    -10.0%    380K      +18.4%
  Product B               320K      300K      20K      +6.7%    290K      +10.3%
  Services                180K      200K     (20K)    -10.0%    150K      +20.0%
Total Revenue             950K     1,000K    (50K)     -5.0%    820K      +15.9%

COGS                     (380K)    (400K)     20K      -5.0%   (340K)     +11.8%
Gross Profit              570K      600K     (30K)     -5.0%    480K      +18.8%
  Gross Margin           60.0%     60.0%       —         —     58.5%       +1.5pp

Operating Expenses
  Salaries               (250K)    (240K)    (10K)     +4.2%   (200K)     +25.0%
  Marketing               (60K)     (80K)     20K     -25.0%    (50K)     +20.0%
  G&A                     (45K)     (50K)      5K     -10.0%    (40K)     +12.5%
Total OpEx               (355K)    (370K)     15K      -4.1%   (290K)     +22.4%

EBITDA                    215K      230K     (15K)     -6.5%    190K      +13.2%
  EBITDA Margin          22.6%     23.0%    -0.4pp       —     23.2%      -0.6pp

Budget EBITDA          $230K
  Revenue shortfall     (50K)   ← Volume: (30K), Price: (15K), Mix: (5K)
  COGS favorability      20K   ← Material costs lower than expected
  Salary overage        (10K)   ← Hired 2 weeks earlier than planned
  Marketing savings      20K   ← Campaign delayed to next month
  G&A savings             5K   ← Office lease negotiation
Actual EBITDA          $215K