What's Next For Accounting? - Issue #91
Jason Staats
July 13, 2023
💡 Generate FS Delivery Scripts with AI
We used a prescribed methodology for how our team delivered financial statements over video. This was to make it as easy as possible for team members to speak confidently over the month’s results.
Always point out cash movements, look for P&L trends, always highlight payroll costs, pay attention to shifts in current ratio, etc.
This week OpenAI opened up general availability of their Code Interpreter model to GPT Plus subscribers. Most notably, it allows for you to upload nearly any type of file for analysis.
There are a bunch of applications for us here that we’re still uncovering, but notably it has a fairly coherent understanding of accounting reports.
Using the June financials for good ole Craig’s Design and Landscaping Services, it generated the following script for me. The result was more-or-less what I would’ve touched on, and even caught a couple items I didn’t notice.
"Hello, and welcome to your June financial review. Let's begin with the Income Statement, also known as the Profit and Loss statement. Starting with our income, we can see there's a steady increase in total income from April to June, with a significant jump in June to $6,915.88 from $1,510.64 in May. This is largely due to an increase in our Landscaping Services and Job Materials income.
In terms of expenses, there's a noticeable increase from $462.63 in April to $2,895.10 in June. A major contributor to this increase was the 'Other Expenses' category which saw a large jump in June due to 'Miscellaneous' expenses. Let's turn to net income. Here we see a dip in May to -$284.94, but a strong recovery in June to $949.78. However, remember that net income isn't always reflective of cash movement, as it includes non-cash items like depreciation and accrued expenses.
Now, let's move on to the Balance Sheet. Starting with our cash balances, we see a decrease from $4,321.40 in May to $2,001.00 in June in the Checking account. This is something to keep an eye on. In terms of current liabilities, there's a significant increase from $136.48 in May to $4,333.64 in June. This is mainly due to a new 'Loan Payable' of $4,000.00. Also noteworthy is the addition of a 'Notes Payable' of $25,000.00 in long-term liabilities in June.
In summary, June saw a significant increase in income and expenses, a substantial recovery in net income, and a rise in liabilities due to new loans. As always, it's important to review these financial statements in detail and understand the trends and changes month over month. Thank you for your time, and I look forward to discussing these results with you further."
Swipe the full script prompt here, and if you’re feeling fancy have Code Interpreter generate a couple visuals for you.
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