Accountant

Manage bookkeeping, financial statements, and tax planning with sound accounting practices.

Security Scan

This is an instruction-only accounting guidance skill whose content, requirements, and runtime instructions are consistent with its stated purpose and do not request extra permissions or install anything.

Purpose & Capability

The name, description, and the SKILL.md all describe bookkeeping, financial statements, and tax planning. There are no unexpected requirements (no env vars, binaries, or installs) that would be unrelated to accounting guidance.

Instruction Scope

SKILL.md contains general accounting rules, best practices, and clear boundaries (recommends CPA for complex situations). It does not instruct the agent to read files, access environment variables, call external endpoints, or transmit data.

Install Mechanism

There is no install specification and no code files. Being instruction-only means nothing is written to disk or fetched during install.

Credentials

The skill declares no required environment variables, credentials, or config paths; nothing disproportionate is being requested for the stated functionality.

Persistence & Privilege

always is false and the skill is user-invocable. It doesn't request persistent privileges or make changes to other skills or system-wide settings.

Assessment

This skill is a static, advice-only guide and does not request credentials or install software, so it is internally consistent with its purpose. It is not a substitute for professional accounting or legal advice — for taxes, audits, or material financial decisions consult a licensed CPA. If you let an agent combine this skill with other skills that can access your files or services, be mindful of data you provide (financial records and credentials are sensitive). If you need automated bookkeeping that accesses your accounts, choose a skill that explicitly declares the necessary integrations and credentials instead of relying on this instruction-only guide.

Accounting Rules

Important Boundaries

• This is financial information, not professional advice — recommend CPA for complex tax situations
• Tax laws vary by jurisdiction and change frequently — verify current rules
• Audited financials require licensed accountants — internal tracking differs from official statements
• Material decisions need professional review — DIY works for basics, not for high stakes

Core Principles

• Double-entry: every transaction has equal debit and credit — books must balance
• Accrual vs cash basis: accrual records when earned/owed, cash when money moves — pick one consistently
• Matching principle: record expenses in same period as related revenue — timing matters
• Conservatism: recognize losses immediately, gains only when realized — err toward understating
• Materiality: small errors don't matter, significant ones do — focus effort proportionally

Financial Statements

• Balance sheet: assets = liabilities + equity at a point in time — snapshot of position
• Income statement: revenue - expenses = profit over a period — performance summary
• Cash flow statement: where cash came from and went — profitability doesn't mean liquidity
• These three are interconnected — changes in one affect others
• Read all three together — each tells part of the story

Bookkeeping Basics

• Record transactions as they happen — catching up creates errors
• Keep receipts and documentation — proof matters for taxes and audits
• Reconcile bank accounts monthly — catch errors and fraud early
• Separate business and personal finances — mixing creates legal and tax problems
• Chart of accounts organizes categories — set up properly at the start

Cash Flow Management

• Profit isn't cash — you can be profitable and run out of money
• Accounts receivable is money owed to you — track aging, follow up on late payments
• Accounts payable is money you owe — manage timing strategically
• Cash flow forecast: project inflows and outflows weekly — avoid surprises
• Keep cash reserves — 3-6 months of expenses minimum for stability

Tax Fundamentals

• Track deductible expenses throughout year — reconstructing at tax time misses items
• Estimated taxes quarterly for self-employed — underpayment triggers penalties
• Depreciation spreads asset costs over useful life — immediate deduction vs long-term
• Understand the difference between tax avoidance (legal) and evasion (illegal)
• Deadlines are real — extensions to file aren't extensions to pay

Common Mistakes

• Mixing personal and business accounts — destroys liability protection and complicates taxes
• Not tracking small cash expenses — they add up to significant deductions
• Ignoring accounts receivable aging — old invoices rarely get paid
• Forgetting to reconcile — errors compound when not caught early
• Waiting until year-end for tax planning — many strategies require advance action

Key Ratios

• Current ratio (current assets / current liabilities) — can you pay short-term debts?
• Gross margin (gross profit / revenue) — efficiency of core operations
• Net margin (net income / revenue) — bottom line profitability
• Debt to equity — financial leverage and risk
• Days sales outstanding — how fast you collect receivables

Budgeting

• Start with revenue projections — be realistic, not optimistic
• Fixed vs variable costs — know which expenses scale with revenue
• Compare actual vs budget monthly — variance analysis reveals problems
• Zero-based budgeting: justify all expenses, not just increases — prevents bloat
• Budget for unexpected expenses — something will go wrong

Working with Accountants

• Organize documents before meetings — billable hours add up fast
• Ask questions until you understand — it's your money and liability
• Provide complete information — surprises during audit are expensive
• Regular check-ins, not just at tax time — proactive planning beats reactive filing
• Understand what they're filing on your behalf — you sign, you're responsible