📁 Finance
Accountant Prompt: P&L Variance Review and Client Questions
Turn two periods of a client P&L into a variance table with your threshold applied, possible causes framed as questions, entries to check, and a client email.
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Prompt
Act as a senior accountant at a small CPA firm who reviews client P&Ls before they go out, computes every variance from the figures given, and turns unexplained swings into specific questions for the client instead of guesses. Inputs: - Client profile without names or IDs (industry, size, basis of accounting): [ClientProfile] - Current period P&L by account: [CurrentPeriodPL] - Comparison period P&L by account, and what it is (prior month, prior year, or budget): [ComparisonPL] - Variance threshold for follow-up (dollar and percent): [MaterialityThreshold] - Events the client already told you about: [KnownEvents] - Reviewer notes or open items from last close: [ReviewerNotes] Generate: 1. Variance table: every account with current, comparison, dollar change, and percent change, plus total expenses and net income. Mark each line flagged or not flagged using MaterialityThreshold, and show the rule. 2. Ratio check: each flagged cost line as a percent of revenue in both periods, and gross margin in both periods. 3. For each flagged line: possible causes, each tied to KnownEvents or written as an open question; never state a cause the inputs do not support. 4. Entries and items to check in the ledger before the P&L goes out (accruals, cutoff, misposted invoices, capitalization), tied to specific flagged lines. 5. A client email under 180 words with numbered questions, in plain language, that asks for documents, not opinions. 6. A short workpaper note: threshold used, lines flagged, explanations received so far, and what is still open. Rules: - Use only the figures in the Inputs and show every calculation. - No tax positions, deductions, or advice on how to report anything. - Do not include client names, tax IDs, account numbers, or employee names in the output.
Instructions
Run this in ChatGPT (it also works in Claude or Gemini) with figures copied from your own trial balance or P&L, with the client's name, tax IDs, and bank details removed. Replace every [bracket]. The output is a review aid, not tax, audit, or accounting advice, and every proposed entry needs your own support and judgment. If the figures come from a tax return, IRC section 7216 limits how preparers may use or disclose that information, so check your firm's policy and client consent before using any AI tool.
Generated Output
This image was generated using the prompt above.
Examples
Example Input
ClientProfile: landscaping company, about 20 employees, accrual basis, monthly close. CurrentPeriodPL (September 2026): Revenue 148,500. Materials 41,200. Subcontractor labor 18,600. Payroll 52,300. Fuel 6,900. Equipment repairs 1,150. Insurance 3,200. Rent 4,500. Software 2,480. ComparisonPL (September 2025, same month prior year): Revenue 132,000. Materials 36,900. Subcontractor labor 9,800. Payroll 50,100. Fuel 7,400. Equipment repairs 4,850. Insurance 3,200. Rent 4,000. Software 1,240. MaterialityThreshold: follow up when a line moves more than $2,000 and more than 10%. KnownEvents: client added a second install crew in July 2026 using a subcontractor. Client bought a new mower in June 2026. ReviewerNotes: last close, one repair invoice for $2,900 was posted in the wrong month.
Example Output
1. VARIANCE TABLE (September 2026 vs September 2025) Rule: flagged if change > $2,000 AND > 10%. | Account | Sep 2026 | Sep 2025 | Change | % | Flag | | Revenue | 148,500 | 132,000 | +16,500 | +12.5% | Yes | | Materials | 41,200 | 36,900 | +4,300 | +11.7% | Yes | | Subcontractor labor | 18,600 | 9,800 | +8,800 | +89.8% | Yes | | Payroll | 52,300 | 50,100 | +2,200 | +4.4% | No (under 10%) | | Fuel | 6,900 | 7,400 | -500 | -6.8% | No | | Equipment repairs | 1,150 | 4,850 | -3,700 | -76.3% | Yes | | Insurance | 3,200 | 3,200 | 0 | 0% | No | | Rent | 4,500 | 4,000 | +500 | +12.5% | No (under $2,000) | | Software | 2,480 | 1,240 | +1,240 | +100% | No (under $2,000) | | Total expenses | 130,330 | 117,490 | +12,840 | +10.9% | Yes | | Net income | 18,170 | 14,510 | +3,660 | +25.2% | Yes | 2. RATIO CHECK - Materials: 27.7% of revenue vs 28.0%. Moved with revenue. - Subcontractor labor: 12.5% of revenue vs 7.4%. - Equipment repairs: 0.8% of revenue vs 3.7%. - Gross margin after materials and subcontractors: 88,700 / 148,500 = 59.7% vs 85,300 / 132,000 = 64.6%. 3. POSSIBLE CAUSES - Revenue +16,500: may relate to the second install crew added in July. Question: how much September revenue came from that crew's jobs? - Materials +4,300: in line with revenue (27.7% vs 28.0%). Low priority. - Subcontractor labor +8,800: consistent with the subcontracted second crew (known event). Question: are all September subcontractor invoices in, and do any cover August work? - Equipment repairs -3,700: could relate to the new mower bought in June, but that is not confirmed. Last close had a $2,900 repair invoice in the wrong month, so check cutoff first. - Total expenses and net income: explained by the lines above once those are confirmed. 4. ITEMS TO CHECK BEFORE RELEASE - Repairs: search vendor bills dated in September and early October for repair work performed in September; confirm none is waiting for approval or posted to October. - Subcontractor labor: match September subcontractor bills to job dates (cutoff). - New mower: confirm it was capitalized as equipment and not expensed to repairs in June. - Software: below threshold, but note the doubling for the client conversation. 5. CLIENT EMAIL Subject: A few questions on your September numbers Hi, we're finishing your September review and have four quick questions: 1. Could you send the September invoices from your install subcontractor, with the job dates on each? 2. Roughly how much of September's revenue came from the second crew's jobs? A job list is fine. 3. Did you have any equipment repair work done in September that hasn't been billed yet? 4. Your software costs went from $1,240 to $2,480. Did you add a new subscription? A copy of the invoice helps. Thanks, and we'll send the final September package once these are in. 6. WORKPAPER NOTE Threshold: > $2,000 and > 10%. Flagged: revenue, materials, subcontractor labor, equipment repairs, total expenses, net income. Explained so far: materials (moves with revenue). Supported by known events, pending documents: revenue, subcontractor labor. Open: equipment repairs (cutoff check), software (below threshold, client question).