AI Prompts for Finance Professionals: 40+ Ready-to-Use Templates

TL;DR - Best AI Prompts for Finance

Looking for ready-to-use AI prompts for finance? This guide contains 40+ copy-paste prompts that work with ChatGPT, Claude, and Gemini. Each prompt includes placeholders you can customize for your specific financial needs. For foundational prompting skills, see the Prompt Engineering Fundamentals guide.

What’s included:

• Financial Analysis Prompts — Variance analysis, ratio analysis, trend analysis, and insights
• Excel & Formulas Prompts — Complex formulas, pivot tables, and automation
• Budgeting Prompts — Budget preparation, assumptions, and presentations
• Forecasting Prompts — Revenue forecasts, scenario modeling, and sensitivity analysis
• Financial Modeling Prompts — DCF, LBO basics, ROI calculations, and model auditing
• Reporting Prompts — Monthly close, board reports, and stakeholder communication
• Communication Prompts — Explain financials to non-finance audiences

💡 Pro tip: Include specific numbers, time periods, and business context. The more detail you provide about your financial situation, the more actionable the output. For AI-powered everyday productivity, see the AI for Everyday Productivity guide.

How to Use These Finance Prompts

Each prompt below is ready to copy and paste. Here’s how they work:

1. Copy the entire prompt from the code block
2. Replace the placeholder comments (lines starting with # REPLACE:) with your actual content
3. Paste into ChatGPT, Claude, or your preferred AI
4. Get your result and iterate if needed

Adding Context for Better Results

Finance prompts work best with detailed context:

=== FINANCIAL CONTEXT (include in any prompt) ===
Company: [Company name and industry]
Role: [Your role - FP&A, Controller, CFO, etc.]
Time Period: [Month, quarter, year being analyzed]
Currency: [USD, EUR, etc.]
Key Metrics: [Important KPIs for your business]
Audience: [Who will see the output]

Financial Analysis Prompts

Perform Variance Analysis

Use this to analyze budget vs actual performance. For building reusable prompt templates, see the Prompt Templates and Variables guide.

Perform a variance analysis and explain the results.

=== FINANCIAL DATA ===
Period: 
# REPLACE: Month/Quarter being analyzed

Budget vs Actual:
# REPLACE: Paste your data
# Example:
# Revenue: Budget $1,000,000 | Actual $950,000 | Variance -$50,000
# COGS: Budget $400,000 | Actual $380,000 | Variance +$20,000
# Gross Profit: Budget $600,000 | Actual $570,000 | Variance -$30,000

=== BUSINESS CONTEXT ===
# REPLACE: What happened during this period?
# - New product launched
# - Lost key customer
# - Hiring freeze implemented

=== AUDIENCE ===
# REPLACE: Who will see this analysis? (CEO, Board, Department heads)

=== GENERATE VARIANCE ANALYSIS ===

## Variance Analysis: [Period]

### Executive Summary
(3-4 sentences: What happened, key drivers, bottom-line impact)

### Key Metrics Overview
| Metric | Budget | Actual | Variance | % Var |
|--------|--------|--------|----------|-------|
| | | | | |

🟢 Favorable | 🔴 Unfavorable | 🟡 Within 5%

### Variance Breakdown

**Revenue Variance: [Amount] ([%])**
- **Price variance:** $ (impact of price changes)
- **Volume variance:** $ (impact of quantity changes)
- **Mix variance:** $ (impact of product mix)
- **Key drivers:**
  - (Driver 1 with $ impact)
  - (Driver 2 with $ impact)

**Expense Variances:**

| Category | Variance | Driver | Controllable? |
|----------|----------|--------|---------------|
| | | | Yes/No |

### Waterfall: Budget to Actual

Budget: $X

• Favorable variance 1: +$X

• Unfavorable variance 1: -$X

• Favorable variance 2: +$X = Actual: $X

### Root Cause Analysis

**Largest Unfavorable Variance: [Category]**
- What happened:
- Why it happened:
- Is it one-time or recurring?
- Remediation plan:

### Forward-Looking Impact
- Impact on full-year forecast:
- Actions recommended:

### Discussion Questions for Management
1. (Question about key variance)
2. (Question about trend)

Create Ratio Analysis

Use this for financial ratio analysis.

Calculate and interpret key financial ratios.

=== FINANCIAL STATEMENTS ===
# REPLACE: Paste relevant financial data
# Income Statement:
# - Revenue: $X
# - Gross Profit: $X
# - Operating Income: $X
# - Net Income: $X

# Balance Sheet:
# - Cash: $X
# - Accounts Receivable: $X
# - Inventory: $X
# - Total Assets: $X
# - Current Liabilities: $X
# - Total Liabilities: $X
# - Shareholders' Equity: $X

=== COMPARISON DATA (optional) ===
# REPLACE: Industry averages or prior period

=== GENERATE RATIO ANALYSIS ===

## Financial Ratio Analysis

### Profitability Ratios
| Ratio | Formula | Value | Industry Avg | Assessment |
|-------|---------|-------|--------------|------------|
| Gross Margin | GP/Revenue | X% | X% | Above/Below |
| Operating Margin | Op Inc/Revenue | X% | X% | |
| Net Margin | Net Inc/Revenue | X% | X% | |
| ROE | Net Inc/Equity | X% | X% | |
| ROA | Net Inc/Assets | X% | X% | |

**Interpretation:**
(What the profitability ratios tell us)

### Liquidity Ratios
| Ratio | Formula | Value | Benchmark | Assessment |
|-------|---------|-------|-----------|------------|
| Current Ratio | CA/CL | X | >1.5 | |
| Quick Ratio | (CA-Inv)/CL | X | >1.0 | |
| Cash Ratio | Cash/CL | X | | |

**Interpretation:**
(What liquidity ratios tell us about short-term health)

### Efficiency Ratios
| Ratio | Formula | Value | Trend | Assessment |
|-------|---------|-------|-------|------------|
| Days Sales Outstanding | (AR/Rev)*365 | X days | | |
| Days Inventory Outstanding | (Inv/COGS)*365 | X days | | |
| Days Payable Outstanding | (AP/COGS)*365 | X days | | |
| Cash Conversion Cycle | DSO+DIO-DPO | X days | | |

### Leverage Ratios
| Ratio | Formula | Value | Benchmark | Assessment |
|-------|---------|-------|-----------|------------|
| Debt-to-Equity | Debt/Equity | X | | |
| Debt-to-Assets | Debt/Assets | X% | | |
| Interest Coverage | EBIT/Interest | X | >3x | |

### Summary Assessment

**Strengths:**
1. (Ratio strength and what it means)
2. 

**Areas of Concern:**
1. (Ratio concern and implications)
2. 

**Recommendations:**
1. (Action to improve weak ratio)
2. 

Analyze Trends Over Time

Use this for period-over-period analysis.

Analyze financial trends and identify patterns.

=== HISTORICAL DATA ===
# REPLACE: Paste multiple periods of data
# | Period | Revenue | Gross Profit | Operating Expenses | Net Income |
# | Q1 2023 | | | | |
# | Q2 2023 | | | | |
# | Q3 2023 | | | | |
# | Q4 2023 | | | | |
# | Q1 2024 | | | | |

=== BUSINESS EVENTS ===
# REPLACE: Notable events during this period
# - Q2 2023: New product launch
# - Q4 2023: Acquisition of Company X

=== GENERATE TREND ANALYSIS ===

## Trend Analysis: [Period Range]

### Revenue Trends
| Period | Revenue | QoQ Growth | YoY Growth |
|--------|---------|------------|------------|
| | | | |

**Trend:** [Accelerating / Decelerating / Stable / Volatile]

**Key Observations:**
- (Observation 1)
- (Observation 2)

**Seasonality:**
- (Any seasonal patterns identified)

### Margin Trends
| Period | Gross Margin | Op Margin | Net Margin |
|--------|--------------|-----------|------------|
| | | | |

**Trend:**
- Gross margin: [Expanding / Contracting / Stable]
- Operating margin: [Expanding / Contracting / Stable]

**Drivers:**
- (What's driving margin changes)

### Growth Rate Analysis
| Metric | CAGR | Average Growth | Volatility |
|--------|------|----------------|------------|
| Revenue | | | |
| Net Income | | | |

### Visual Trend Description
(Describe what a chart would show)

### Inflection Points
| Period | Event | Impact |
|--------|-------|--------|
| | | |

### Forward Projection
Based on trends, if patterns continue:
- Next quarter estimate: $X
- Risks to projection:
- Assumptions:

### Recommendations
1. (Action based on trend analysis)
2. 

Excel & Formula Prompts

Create Excel Formula

Use this to get complex Excel formulas.

Create an Excel formula for this calculation.

=== WHAT I NEED ===
# REPLACE: Describe what you want to calculate
# Example: Look up a value in a table and return the corresponding value from another column, but if not found, return the value from a different table

=== DATA STRUCTURE ===
# REPLACE: Describe your data layout
# - Sheet1 has product list in column A, prices in column B
# - Sheet2 has order data with product names in column C
# - I need to look up prices in Sheet1 based on products in Sheet2

=== CONSTRAINTS ===
# REPLACE: Any specific requirements
# - Must work in Excel 2019 (no XLOOKUP)
# - Needs to handle errors gracefully
# - Should be an array formula

=== GENERATE FORMULA ===

## Excel Formula Solution

### The Formula

=FORMULA_HERE

### How It Works
(Step-by-step breakdown of the formula)

1. **Part 1:** `FUNCTION(...)` - Explanation
2. **Part 2:** `FUNCTION(...)` - Explanation
3. **Combined:** How parts work together

### Implementation Steps
1. Select cell [X]
2. Enter the formula
3. Press [Enter / Ctrl+Shift+Enter for array]
4. Copy down to other cells

### Handling Edge Cases
- If value not found: Returns [X]
- If blank input: Returns [X]
- If error: Returns [X]

### Alternative Approaches

**Option 2 (if using Excel 365):**

=SIMPLER_FORMULA

**Option 3 (using helper column):**

=HELPER_FORMULA

### Testing
Test cases to verify formula works:
- Input: [X] → Expected output: [Y]
- Input: [X] → Expected output: [Y]

Build Financial Model in Excel

Use this to structure an Excel financial model.

Help me structure a financial model in Excel.

=== MODEL PURPOSE ===
# REPLACE: What is this model for?
# - 3-statement model
# - Budget model
# - ROI analysis
# - Project evaluation

=== INPUTS ===
# REPLACE: What inputs/assumptions will drive the model?
# - Revenue assumptions
# - Cost assumptions
# - Growth rates

=== OUTPUTS ===
# REPLACE: What outputs/metrics do you need?
# - Projected financials
# - NPV/IRR
# - Key ratios

=== GENERATE MODEL STRUCTURE ===

## Financial Model Blueprint: [Purpose]

### Tab Structure
| Tab # | Tab Name | Purpose |
|-------|----------|---------|
| 1 | Cover | Model info, versions, owner |
| 2 | Assumptions | All input assumptions |
| 3 | Revenue | Revenue build-up |
| 4 | Costs | Cost build-up |
| 5 | P&L | Income statement |
| 6 | Balance Sheet | Balance sheet |
| 7 | Cash Flow | Cash flow statement |
| 8 | Valuation | DCF/metrics |
| 9 | Scenarios | Sensitivity analysis |
| 10 | Dashboard | Summary charts/KPIs |

### Assumptions Tab Structure
| Section | Inputs | Cell Reference |
|---------|--------|----------------|
| Revenue | | |
| - Growth Rate | | B5 |
| - Price | | B6 |
| Costs | | |
| - COGS % | | B10 |
| - Fixed Costs | | B11 |

### Key Formulas Needed

**Revenue Calculation:**

=Prior_Revenue * (1 + Growth_Rate)

**COGS Calculation:**

=Revenue * COGS_Percentage

**Working Capital:**

=Revenue / 365 * DSO_Days

### Model Best Practices Checklist
- [ ] All inputs in one place (Assumptions tab)
- [ ] Hard-coded values in BLUE font
- [ ] Formulas in BLACK font
- [ ] Links to other sheets in GREEN font
- [ ] Error checks built in
- [ ] Version control in Cover tab
- [ ] No circular references (or documented)

### Error Checks to Include
| Check | Formula | Location |
|-------|---------|----------|
| B/S Balances | =IF(Assets=Liabilities,"OK","ERROR") | |
| CF Ties to Cash | =IF(End_Cash=BS_Cash,"OK","ERROR") | |

### Sensitivity Tables
Structure for 2-way sensitivity:
- Row: Variable 1 (e.g., Growth Rate: 5%, 10%, 15%)
- Column: Variable 2 (e.g., Margin: 20%, 25%, 30%)
- Output: NPV or IRR

### Documentation Needed
- Assumptions sources
- Model limitations
- Update procedures

Create Pivot Table Analysis

Use this for Excel pivot table guidance.

Help me create a pivot table analysis.

=== DATA ===
# REPLACE: Describe your raw data
# - Columns: Date, Region, Product, Customer, Revenue, Units, Cost
# - Rows: Transaction-level data, ~10,000 rows
# - Time period: Full year

=== ANALYSIS NEEDED ===
# REPLACE: What questions do you want to answer?
# - Revenue by region and product
# - Top 10 customers
# - Monthly trends
# - Profitability by segment

=== GENERATE PIVOT TABLE GUIDE ===

## Pivot Table Analysis Guide

### Recommended Pivot Tables

**Pivot 1: Revenue by Region and Product**
| Field | Area |
|-------|------|
| Region | Rows |
| Product | Columns |
| Revenue | Values (Sum) |

Insights to look for:
- Which region is largest?
- Which products dominate each region?
- Are there regional product preferences?

**Pivot 2: Monthly Trend Analysis**
| Field | Area |
|-------|------|
| Date (grouped by Month) | Rows |
| Revenue | Values (Sum) |
| Revenue | Values (Show as % of Column Total) |

Insights to look for:
- Seasonality patterns
- Growth trajectory
- Anomalous months

**Pivot 3: Top 10 Customer Analysis**
| Field | Area |
|-------|------|
| Customer | Rows |
| Revenue | Values (Sum) |

Then: Filter top 10 by value

Add:
| Product | Columns |

Insights to look for:
- Customer concentration risk
- Cross-sell opportunities

**Pivot 4: Profitability Analysis**
| Field | Area |
|-------|------|
| Product | Rows |
| Region | Columns |
| Revenue | Values (Sum) |

Add calculated field:

=Revenue - Cost / Revenue

(for margin %)

### Formatting Recommendations
- Currency format: $#,##0
- Percentage format: 0.0%
- Conditional formatting for highest/lowest

### Slicers to Add
- Year/Quarter
- Region
- Product Category

### Dashboard Layout

[Slicer: Year] [Slicer: Region]

[Pivot 1: Revenue Matrix] [Pivot 2: Trend Chart]

[Pivot 3: Top Customers] [Pivot 4: Profitability]

Budgeting Prompts

Create Annual Budget

Use this to structure budget preparation.

Help me prepare an annual budget.

=== BUDGET CONTEXT ===
Budget Year: 
# REPLACE: Year you're budgeting

Department/Company: 
# REPLACE: What are you budgeting for?

Budget Type: 
# REPLACE: Top-down / Bottom-up / Zero-based

=== PRIOR YEAR ACTUALS ===
# REPLACE: Last year's actual results
# - Revenue: $X
# - Total Expenses: $X
# - Net Income: $X

=== KEY ASSUMPTIONS ===
# REPLACE: What assumptions should drive the budget?
# - Revenue growth: X%
# - Headcount changes: +/- X people
# - Known initiatives: New product launch, expansion

=== GENERATE BUDGET FRAMEWORK ===

## Annual Budget: [Year] - [Department/Company]

### Budget Calendar
| Milestone | Date | Owner |
|-----------|------|-------|
| Kickoff meeting | | |
| Historical analysis complete | | |
| Assumptions finalized | | |
| First draft due | | |
| Review with leadership | | |
| Revisions complete | | |
| Board approval | | |
| Upload to system | | |

### Key Assumptions Table
| Category | Assumption | Value | Source/Rationale |
|----------|------------|-------|-----------------|
| Revenue Growth | | X% | |
| Price Increase | | X% | |
| Headcount | | +X FTEs | |
| Inflation | | X% | |
| FX Rate | | X | |

### Revenue Budget Build-Up
| Revenue Stream | Prior Year | Assumption | Budget | Growth |
|----------------|------------|------------|--------|--------|
| Product A | | | | |
| Product B | | | | |
| Services | | | | |
| **Total** | | | | |

### Expense Budget Build-Up

**Personnel Costs:**
| Role | Headcount | Avg Salary | Benefits (X%) | Total |
|------|-----------|------------|---------------|-------|
| | | | | |

**Operating Expenses:**
| Category | Prior Year | Adjustment | Budget | Change |
|----------|------------|------------|--------|--------|
| Marketing | | | | |
| Travel | | | | |
| Software | | | | |

### Monthly Phasing
| Month | Revenue | Expenses | Net |
|-------|---------|----------|-----|
| Jan | | | |
| Feb | | | |
| (etc.) | | | |

Phasing methodology:
- Revenue: [Seasonal pattern / Straight-line / etc.]
- Expenses: [Monthly / Event-based / etc.]

### Risk Factors
| Risk | Impact | Probability | Contingency |
|------|--------|-------------|-------------|
| | High/Med/Low | High/Med/Low | |

### Approval Sign-offs
| Approver | Date | Signature |
|----------|------|-----------|
| Department Head | | |
| Finance | | |
| CFO | | |

Explain Budget Variance to Leadership

Use this to present budget reports.

Help me explain budget variances to leadership.

=== VARIANCE DATA ===
# REPLACE: Key variances to explain
# | Line Item | Budget | Actual | Variance | % |
# | Revenue | $1M | $900K | -$100K | -10% |
# | Marketing | $200K | $220K | -$20K | -10% |

=== BUSINESS CONTEXT ===
# REPLACE: What happened during the period?

=== AUDIENCE ===
# REPLACE: CEO, Board, Department VPs

=== GENERATE PRESENTATION ===

## Budget Variance Report: [Period]

### Executive Summary
(2-3 sentences: Overall performance, key driver, outlook)

**Bottom Line:** [Met / Missed] budget by [Amount] ([%])

### Performance Snapshot
| | Budget | Actual | Variance | |
|---|--------|--------|----------|---|
| Revenue | | | | 🔴/🟢 |
| Expenses | | | | 🔴/🟢 |
| Net Income | | | | 🔴/🟢 |

### Top 3 Variances Explained

**1. [Largest Variance]: [Category]**
- **What:** [Amount] [unfavorable/favorable]
- **Why:** [Root cause in business terms]
- **Impact:** [Effect on overall performance]
- **Action:** [What we're doing about it]

**2. [Second Variance]: [Category]**
...

**3. [Third Variance]: [Category]**
...

### Controllable vs. Non-Controllable
| Variance | Amount | Controllable? | Owner |
|----------|--------|---------------|-------|
| | | Yes/No | |

### Year-to-Date Perspective
| | YTD Budget | YTD Actual | Variance | Full Year Impact |
|---|------------|------------|----------|------------------|
| | | | | |

### Updated Full-Year Outlook
Based on [Period] results:
- Original full-year budget: $X
- Current projection: $X
- Change: $X

### Corrective Actions
| Issue | Action | Owner | Timeline | Expected Impact |
|-------|--------|-------|----------|-----------------|
| | | | | |

### Questions to Anticipate
**Q: Why did we miss revenue?**
A: (Prepared answer)

**Q: What are we doing about expense overruns?**
A: (Prepared answer)

Forecasting Prompts

Build Revenue Forecast

Use this to create revenue projections.

Help me build a revenue forecast.

=== HISTORICAL DATA ===
# REPLACE: Past revenue data
# | Period | Revenue | Growth |
# | 2022 | $X | |
# | 2023 | $X | X% |
# | 2024 YTD | $X | |

=== FORECAST PERIOD ===
# REPLACE: How far out are you forecasting?

=== REVENUE DRIVERS ===
# REPLACE: What drives your revenue?
# - # of customers × average spend
# - # of units × price per unit
# - # of subscribers × MRR

=== GENERATE FORECAST ===

## Revenue Forecast: [Period]

### Forecast Methodology
**Approach:** [Driver-based / Historical trend / Hybrid]

**Key Drivers:**
1. [Driver 1]: Assumption [X]
2. [Driver 2]: Assumption [X]
3. [Driver 3]: Assumption [X]

### Driver-Based Build-Up
| Driver | Current | Assumption | Forecast Value |
|--------|---------|------------|----------------|
| Customers | | Growth of X% | |
| × Avg Spend | | | |
| = Revenue | | | |

### Monthly/Quarterly Forecast
| Period | Revenue | QoQ Growth | Key Drivers |
|--------|---------|------------|-------------|
| Q1 | | | |
| Q2 | | | |
| Q3 | | | |
| Q4 | | | |
| **Total** | | | |

### Revenue by Segment
| Segment | Prior Year | Forecast | Growth | Mix |
|---------|-----------|----------|--------|-----|
| Segment A | | | | % |
| Segment B | | | | % |

### Seasonality Adjustment
| Month | Seasonal Factor | Adjusted Forecast |
|-------|-----------------|-------------------|
| Jan | 0.8x | |
| Feb | 0.9x | |
| ... | | |

### Assumptions & Risks
| Assumption | Value | Confidence | Upside | Downside |
|------------|-------|------------|--------|----------|
| | | High/Med/Low | +$X | -$X |

### Scenario Analysis
| Scenario | Assumption Change | Revenue Impact |
|----------|-------------------|----------------|
| Base | As planned | $X |
| Optimistic | +X% growth | $X |
| Conservative | -X% growth | $X |
| Stress | Major headwind | $X |

### Forecast vs. Budget
| | Budget | Forecast | Variance |
|---|--------|----------|----------|
| Full Year | | | |

### Rolling Forecast Updates
Track accuracy:
| Forecast Date | Projection | Actual | Accuracy |
|---------------|------------|--------|----------|
| | | | |

Create Scenario Analysis

Use this for scenario planning.

Build a scenario analysis for financial planning.

=== DECISION/SITUATION ===
# REPLACE: What are you evaluating?
# - New market expansion
# - Product launch
# - Economic scenarios

=== BASE CASE ASSUMPTIONS ===
# REPLACE: Your baseline assumptions
# - Revenue: $X
# - Margin: X%
# - Growth: X%

=== VARIABLES TO STRESS ===
# REPLACE: What factors could change?
# - Revenue growth: +/- 10%
# - Cost inflation: +/- 5%

=== GENERATE SCENARIO ANALYSIS ===

## Scenario Analysis: [Topic]

### Scenarios Defined
| Scenario | Description | Probability |
|----------|-------------|-------------|
| Base Case | Current expectations | 50% |
| Upside | Favorable conditions | 20% |
| Downside | Moderate headwinds | 20% |
| Stress | Severe headwinds | 10% |

### Key Variable Assumptions
| Variable | Base | Upside | Downside | Stress |
|----------|------|--------|----------|--------|
| Revenue Growth | X% | X% | X% | X% |
| Gross Margin | X% | X% | X% | X% |
| OpEx Growth | X% | X% | X% | X% |

### Scenario Outputs
| Metric | Base | Upside | Downside | Stress |
|--------|------|--------|----------|--------|
| Revenue | $X | $X | $X | $X |
| Gross Profit | $X | $X | $X | $X |
| Net Income | $X | $X | $X | $X |
| Cash Flow | $X | $X | $X | $X |

### Sensitivity: Key Variable Impact
If [Variable] changes by X%:
| Revenue | -20% | -10% | Base | +10% | +20% |
|---------|------|------|------|------|------|
| Net Income | | | | | |

### Probability-Weighted Outcome
| Scenario | Probability | Net Income | Weighted |
|----------|-------------|------------|----------|
| Base | 50% | $X | $X |
| Upside | 20% | $X | $X |
| Downside | 20% | $X | $X |
| Stress | 10% | $X | $X |
| **Expected Value** | | | **$X** |

### Trigger Points & Actions
| Indicator | Trigger Level | Action |
|-----------|---------------|--------|
| Revenue | Falls below $X | Reduce OpEx by Y% |
| Cash | Falls below $X | Draw credit line |

### Recommendations
Based on scenario analysis:
1. (Key takeaway)
2. (Risk mitigation)
3. (Upside opportunity)

Financial Modeling Prompts

Build DCF Valuation

Use this for discounted cash flow analysis.

Help me structure a DCF valuation.

=== COMPANY/PROJECT ===
# REPLACE: What are you valuing?

=== FINANCIAL DATA ===
# REPLACE: Key financial inputs
# - Revenue: $X
# - EBITDA: $X
# - CapEx: $X
# - Working Capital: $X
# - Tax Rate: X%
# - Debt: $X

=== ASSUMPTIONS NEEDED ===
# REPLACE: Key assumptions
# - Growth rate for projection period
# - Terminal growth rate
# - WACC/Discount rate

=== GENERATE DCF FRAMEWORK ===

## DCF Valuation: [Company/Project]

### Key Assumptions
| Assumption | Value | Rationale |
|------------|-------|-----------|
| Projection Period | X years | Industry standard |
| Revenue Growth (Yr 1-3) | X% | Based on historical |
| Revenue Growth (Yr 4-5) | X% | Maturing growth |
| Terminal Growth Rate | X% | GDP + inflation |
| WACC | X% | Built up below |
| Tax Rate | X% | Effective rate |

### WACC Build-Up
| Component | Value | Source |
|-----------|-------|--------|
| Risk-free Rate | X% | 10-yr Treasury |
| Market Risk Premium | X% | Historical average |
| Beta (levered) | X | Industry/Comparable |
| Cost of Equity | X% | Rf + β(MRP) |
| Cost of Debt (after-tax) | X% | Interest rate × (1-T) |
| Debt/Total Cap | X% | Target structure |
| **WACC** | **X%** | Weighted average |

### Projected Free Cash Flow
| | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|--------|--------|--------|--------|--------|
| Revenue | | | | | |
| EBITDA | | | | | |
| - D&A | | | | | |
| EBIT | | | | | |
| - Taxes | | | | | |
| EBIAT | | | | | |
| + D&A | | | | | |
| - CapEx | | | | | |
| - ΔWC | | | | | |
| **FCF** | | | | | |

### Terminal Value
**Exit Multiple Method:**
- Terminal EBITDA: $X
- Exit Multiple: Xx (industry comparable)
- Terminal Value: $X

**Perpetuity Growth Method:**
- Terminal FCF: $X
- Growth Rate: X%
- WACC: X%
- Terminal Value = FCF × (1+g) / (WACC - g) = $X

### Valuation Summary
| | Value |
|---|-------|
| PV of FCF (Years 1-5) | $X |
| PV of Terminal Value | $X |
| Enterprise Value | $X |
| - Net Debt | $X |
| **Equity Value** | **$X** |
| Shares Outstanding | X |
| **Value per Share** | **$X** |

### Sensitivity Analysis
| | WACC |
| Terminal Growth | 7% | 8% | 9% | 10% | 11% |
|-----------------|-----|-----|-----|-----|-----|
| 1% | | | | | |
| 2% | | | | | |
| 3% | | | | | |

### Key Risks & Sensitivities
- +1% WACC impact: -$X on valuation
- -1% terminal growth impact: -$X on valuation

Calculate ROI/Payback

Use this for investment analysis.

Calculate ROI and payback for this investment.

=== INVESTMENT ===
Project Name: 
# REPLACE: What are you investing in?

Initial Investment: 
# REPLACE: Upfront cost

=== EXPECTED BENEFITS ===
# REPLACE: Financial benefits over time
# - Cost savings: $X per year
# - Revenue increase: $X per year
# - Efficiency gains: $X per year

=== COSTS ===
# REPLACE: Ongoing costs
# - Operating costs: $X per year
# - Maintenance: $X per year

=== TIMEFRAME ===
# REPLACE: Analysis period (e.g., 5 years)

=== GENERATE ROI ANALYSIS ===

## Investment Analysis: [Project Name]

### Investment Summary
| Item | Amount |
|------|--------|
| Initial Investment | $X |
| Annual Benefits | $X |
| Annual Costs | $X |
| Net Annual Benefit | $X |

### Cash Flow Projection
| Year | Investment | Benefits | Costs | Net CF | Cumulative |
|------|------------|----------|-------|--------|------------|
| 0 | ($X) | - | - | ($X) | ($X) |
| 1 | - | $X | $X | $X | ($X) |
| 2 | - | $X | $X | $X | $X |
| ... | | | | | |

### Key Metrics

**Simple Payback Period:**
- Initial Investment ÷ Annual Net Benefit = X years
- Payback achieved in Year X

**ROI (Simple):**
- (Total Benefits - Total Costs - Investment) ÷ Investment
- ROI = X%

**NPV Analysis:**
| Year | Net CF | Discount Factor (X%) | PV |
|------|--------|----------------------|-----|
| | | | |
| **NPV** | | | **$X** |

NPV is [Positive/Negative], project [creates/destroys] value.

**IRR:**
- IRR = X%
- Hurdle Rate = X%
- Project [meets/doesn't meet] hurdle

### Sensitivity Analysis
| Variable | Change | Impact on Payback | Impact on ROI |
|----------|--------|-------------------|---------------|
| Benefits | -20% | +X years | -X% |
| Costs | +20% | +X years | -X% |

### Recommendation
**Decision:** [Proceed / Do Not Proceed / Need More Analysis]

**Rationale:**
1. (Supporting point)
2. (Supporting point)
3. (Risk consideration)

**Next Steps:**
1. (Action item)
2. (Action item)

Reporting Prompts

Write Monthly Finance Report

Use this to structure monthly closes.

Help me write a monthly finance report.

=== PERIOD ===
# REPLACE: Month and year

=== FINANCIAL RESULTS ===
# REPLACE: Key financial data
# - Revenue: Actual vs Budget vs Prior Year
# - Expenses by category
# - Net Income
# - Cash position

=== SIGNIFICANT EVENTS ===
# REPLACE: What happened this month?

=== AUDIENCE ===
# REPLACE: Executive team, Board, Department heads

=== GENERATE MONTHLY REPORT ===

## Monthly Finance Report: [Month Year]

### Executive Summary
(3-4 sentences: How we performed, key drivers, outlook)

### Financial Highlights
| Metric | Actual | Budget | Var | Prior Year | YoY |
|--------|--------|--------|-----|------------|-----|
| Revenue | | | | | |
| Gross Profit | | | | | |
| Operating Expenses | | | | | |
| Net Income | | | | | |
| Cash | | | | | |

### Revenue Performance
**[Month] Results:** $X ([+/-]X% vs budget)

Key drivers:
- [Driver 1]: +/- $X impact
- [Driver 2]: +/- $X impact

**YTD Revenue:** $X ([X]% of annual target)

### Expense Analysis
| Category | Actual | Budget | Variance | Commentary |
|----------|--------|--------|----------|------------|
| Personnel | | | | |
| Marketing | | | | |
| Operations | | | | |
| Other | | | | |
| **Total** | | | | |

### Cash & Liquidity
| Metric | Current | Prior Month | Change |
|--------|---------|-------------|--------|
| Cash Balance | | | |
| AR Aging (DSO) | | | |
| AP Balance | | | |
| Runway (months) | | | |

### Key Metrics Dashboard
| KPI | Target | Actual | Status |
|-----|--------|--------|--------|
| Gross Margin | X% | X% | 🟢/🔴 |
| Customer Count | X | X | 🟢/🔴 |
| ARPU | $X | $X | 🟢/🔴 |

### Issues & Risks
| Issue | Impact | Status | Action |
|-------|--------|--------|--------|
| | High/Med/Low | Open/Closed | |

### Full-Year Forecast Update
| | Budget | Current Forecast | Change |
|---|--------|------------------|--------|
| Revenue | | | |
| Net Income | | | |

### Looking Ahead
**Next Month Focus:**
- (Key initiative)
- (Expected financial impact)

**Key Dates:**
- (Important deadlines)

Explain Financials to Non-Finance Audience

Use this to make financials understandable.

Explain these financials to a non-finance audience.

=== FINANCIAL DATA ===
# REPLACE: The numbers you need to explain
# - Revenue: $1.2M (up 15% YoY)
# - Gross Margin: 65%
# - CAC: $150, LTV: $500
# - Burn Rate: $100K/month
# - Runway: 18 months

=== AUDIENCE ===
# REPLACE: Who are you explaining to?
# - Engineers
# - Sales team
# - All-hands meeting

=== KEY MESSAGE ===
# REPLACE: What's the main takeaway?

=== GENERATE EXPLANATION ===

## Understanding Our Financials: [Topic]

### The Big Picture
(2-3 sentences using everyday language)

### Key Numbers Explained

**Revenue: $1.2M**
- What it means: [Plain English explanation]
- Analogy: [Relatable comparison]
- Why it matters to you: [Connection to their work]

**Gross Margin: 65%**
- What it means: For every dollar we make, we keep 65 cents after making our product
- Think of it like: [Analogy]
- What affects it: [Factors they influence]

**CAC & LTV ($150 / $500)**
- CAC: What we spend to get one customer
- LTV: What that customer will pay us over time
- Ratio: We get back $3.33 for every $1 we spend
- Why it matters: [Sustainability of growth]

### What's Going Well ✅
1. [Good news in plain terms]
2. [Good news in plain terms]

### Where We Need Improvement 📍
1. [Challenge in plain terms]
2. [Challenge in plain terms]

### What This Means for You
- If you're in [department]: [How this affects them]
- If you're in [department]: [How this affects them]

### How You Can Help
1. [Actionable item]
2. [Actionable item]

### Questions You Might Have

**Q: Are we profitable?**
A: [Honest, simple answer]

**Q: Is the company in good shape?**
A: [Honest, simple answer]

### Glossary
| Term | Simple Definition |
|------|-------------------|
| Revenue | Money from customers |
| Gross Margin | % of revenue left after making product |
| Burn Rate | How much cash we spend per month |
| Runway | How long our cash will last |

Quick Reference

Tips for Better Finance Prompts

1. Include Specific Numbers

❌ "Analyze our revenue variance"
✅ "Analyze our Q3 revenue variance: Budget $5M, Actual $4.5M, 
    shortfall driven by delayed product launch and lost enterprise deal."

2. Specify Time Periods

"Compare Q3 2024 to Q3 2023 and to Q2 2024"
"Trend analysis for last 8 quarters"

3. Include Context

"We're a SaaS company with 80% recurring revenue"
"This is for a Series B board presentation"
"Industry average margin is 40%"

4. Specify Output Format

"Output as Excel-ready table"
"Include formulas I can paste"
"Format for executive presentation"

5. State Your Audience

"For CFO and finance committee"
"For non-finance department heads"
"For external investors"

6. Ask for Interpretation

"Explain what these ratios mean for our business"
"What questions will the board ask about this?"
"What actions should we take based on this analysis?"

7. Request Validation

"Check if my calculation is correct"
"What am I missing in this analysis?"
"What assumptions should I question?"

What’s Next

• 📚 AI Prompts for Business Analysts — Work with your BA team
• 📚 AI Prompts for Data Scientists — Partner on analytics
• 📚 Prompt Engineering Fundamentals — Master prompt techniques
• 🛠️ Business Case Generator — Generate business cases with AI

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