Financial Reporting
Objective
Deliver accurate, timely, and insightful financial reports that give Hedge Edge's founders and stakeholders complete visibility into the business's financial health. Every report must tell a story: what happened, why it happened, and what to do next. Reports comply with UK GAAP and are structured to support future audit readiness and investor due diligence.
When to Use This Skill
- •Monthly (by 5th business day): Monthly management accounts P&L, balance sheet, cash flow, KPI dashboard
- •Quarterly: Quarterly business review pack detailed analysis, trend commentary, reforecast
- •Annually: Annual financial statements for Companies House filing (due 9 months after year-end), Corporation Tax computation
- •On-Demand: When founders need financial data for investor conversations, partnership negotiations, or strategic decisions
- •Trigger-Based: When revenue or expense anomalies detected by other skills require contextual financial analysis
Input Specification
Required Data Sources
- •Revenue Tracking Skill Output: MRR, ARR, revenue by stream, reconciliation status
- •Expense Management Skill Output: Categorised expenses, budget vs. actual, burn rate
- •IB Commission Tracking Skill Output: Commission actuals, accruals, projections
- •Invoicing Skill Output: Invoiced amounts, collections, aged debtors
- •Tide Bank (via TIDE_API_KEY): Bank balance, transaction history (source of truth for cash position)
- •Google Sheets (via GOOGLE_SHEETS_API_KEY): Financial model, budget, prior period actuals
- •Supabase (via SUPABASE_URL, SUPABASE_KEY): Operational metrics (user count, subscriptions)
Input Parameters
| Parameter | Type | Required | Description |
|---|---|---|---|
| report_type | string | Yes | monthly_pnl, quarterly_pack, nnual_accounts, cash_flow, kpi_dashboard, ax_computation, custom |
| period | string | Yes | e.g., 2026-01, 2026-Q1, 2025-FY |
| comparatives | string | No | prior_period, prior_year, udget, ll (default: ll) |
| format | string | No | json, markdown, pdf, sheets (default: markdown) |
Step-by-Step Process
Step 1: Data Collection & Consolidation
- •Pull outputs from all finance skills (revenue, expense, IB, invoicing) for the period
- •Query Tide Bank for opening and closing balances
- •Pull prior period and budget data from Google Sheets
- •Pull operational metrics from Supabase (subscriber count, user registrations)
- •Validate data completeness: all sources reporting, no missing periods
Step 2: Profit & Loss Statement (Monthly/Quarterly)
Construct P&L following UK GAAP structure:
` HEDGE EDGE LTD PROFIT AND LOSS ACCOUNT For the period ended [DD Month YYYY]
TURNOVER (Revenue) SaaS Subscription Revenue £X,XXX IB Commission Revenue (Vantage) £X,XXX IB Commission Revenue (BlackBull) £X,XXX Affiliate Revenue £X,XXX ------- TOTAL TURNOVER £XX,XXX
COST OF SALES Payment Processing Fees (Creem.io) (£X,XXX) Infrastructure Costs (Supabase, hosting) (£X,XXX) ------- TOTAL COST OF SALES (£X,XXX)
GROSS PROFIT £XX,XXX Gross Margin: XX.X%
ADMINISTRATIVE EXPENSES Marketing & Advertising (£X,XXX) Software Licenses & Development Tools (£X,XXX) Banking & Payment Fees (Tide) (£XXX) Professional Fees (accountant, legal) (£XXX) Office & Administration (£XXX) Depreciation / Amortisation (£XXX) Other Operating Expenses (£XXX) ------- TOTAL ADMINISTRATIVE EXPENSES (£X,XXX)
OPERATING PROFIT / (LOSS) £X,XXX Operating Margin: XX.X%
Interest Receivable / (Payable) £XX
PROFIT / (LOSS) BEFORE TAX £X,XXX
Corporation Tax (25%) (£XXX)
PROFIT / (LOSS) AFTER TAX £X,XXX `
Step 3: Balance Sheet (Quarterly/Annual)
` HEDGE EDGE LTD BALANCE SHEET As at [DD Month YYYY]
FIXED ASSETS Intangible Assets (software development) £X,XXX Tangible Assets (equipment) £XXX ------- £X,XXX CURRENT ASSETS Trade Debtors (outstanding invoices) £X,XXX Accrued Income (IB commissions accrued) £X,XXX Prepayments £XXX Cash at Bank (Tide Bank) £XX,XXX ------- £XX,XXX
CURRENT LIABILITIES Trade Creditors (£XXX) Accruals (£XXX) Deferred Revenue (prepaid subscriptions) (£X,XXX) VAT Payable (£XXX) Corporation Tax Payable (£XXX) ------- (£X,XXX)
NET CURRENT ASSETS £XX,XXX
TOTAL ASSETS LESS CURRENT LIABILITIES £XX,XXX
CAPITAL AND RESERVES Share Capital £XXX Retained Earnings £XX,XXX ------- SHAREHOLDERS' FUNDS £XX,XXX `
Step 4: Cash Flow Statement
` HEDGE EDGE LTD CASH FLOW STATEMENT For the period ended [DD Month YYYY]
OPERATING ACTIVITIES Profit / (Loss) before tax £X,XXX Adjustments for: Depreciation / Amortisation £XXX (Increase)/Decrease in Debtors (£XXX) Increase/(Decrease) in Creditors £XXX Increase/(Decrease) in Deferred Revenue £XXX ------- Net Cash from Operating Activities £X,XXX
INVESTING ACTIVITIES Purchase of Fixed Assets (£XXX) Software Development Costs (capitalised) (£XXX) ------- Net Cash used in Investing Activities (£XXX)
FINANCING ACTIVITIES Share Capital Issued £XXX Dividends Paid (£XXX) ------- Net Cash from Financing Activities £XXX
NET INCREASE / (DECREASE) IN CASH £X,XXX Cash at Beginning of Period £XX,XXX Cash at End of Period £XX,XXX Reconciled to Tide Bank balance: `
Step 5: KPI Dashboard
Compile key performance indicators:
| Category | KPI | Current | Prior Period | Change | Target |
|---|---|---|---|---|---|
| Revenue | MRR (GBP) | ||||
| Revenue | ARR (GBP) | ||||
| Revenue | MoM MRR Growth | >10% | |||
| Revenue | Net Revenue Retention | >100% | |||
| Revenue | IB Commission (GBP) | ||||
| Customers | Total Subscribers | ||||
| Customers | Paying Subscribers | ||||
| Customers | Free-to-Paid Conversion | >5% | |||
| Customers | Monthly Churn Rate | <5% | |||
| Unit Economics | ARPU (GBP) | ||||
| Unit Economics | LTV (GBP) | ||||
| Unit Economics | CAC (GBP) | ||||
| Unit Economics | LTV:CAC Ratio | >3:1 | |||
| Unit Economics | Payback Period (months) | <12 | |||
| Cash | Bank Balance (GBP) | ||||
| Cash | Monthly Burn Rate | ||||
| Cash | Runway (months) | >12 | |||
| Profitability | Gross Margin | >70% | |||
| Profitability | Operating Margin | ||||
| Profitability | Rule of 40 | >40 |
Step 6: Variance Analysis
For each P&L line item, calculate:
- •vs. Budget: Actual Budget, Variance %, Commentary on cause
- •vs. Prior Period: Actual Prior, % Change, Commentary on trend
- •vs. Prior Year (if available): YoY growth rate
- •Material variances (>10% or >£500) require a narrative explanation:
- •Root cause analysis
- •Whether variance is one-off or recurring
- •Recommended action (if overspend) or opportunity (if upside)
Step 7: UK Tax Computations
- •Corporation Tax (Annual):
- •Accounting profit before tax
- •Add back: disallowable expenses (entertaining, penalties, depreciation)
- •Deduct: capital allowances (AIA on qualifying assets), R&D enhanced deduction (if eligible)
- •Taxable profit
- •Tax at 25% (or 19% if small profits £50K, marginal relief £50K£250K)
- •Payment due: 9 months + 1 day after accounting period end
- •VAT Return (Quarterly, if registered):
- •Box 1: VAT due on sales (output tax)
- •Box 2: VAT due on acquisitions from EU
- •Box 3: Total VAT due (Box 1 + Box 2)
- •Box 4: VAT reclaimed on purchases (input tax)
- •Box 5: Net VAT (Box 3 Box 4) amount to pay/reclaim
- •Box 6: Total sales (ex-VAT)
- •Box 7: Total purchases (ex-VAT)
- •Submit via MTD-compatible software using HMRC API
Step 8: Report Assembly & Distribution
- •Compile all sections into unified report format
- •Generate executive summary (1 page, suitable for founders/board)
- •Store in Notion financial documentation
- •Update Google Sheets with latest actuals and comparatives
- •Flag critical items requiring immediate attention
Output Specification
Monthly Management Pack Contents
- •Executive Summary (1 page)
- •Profit & Loss Statement (with budget and prior period comparatives)
- •Cash Flow Summary
- •KPI Dashboard
- •Revenue Deep-Dive (from revenue-tracking skill)
- •Expense Analysis (from expense-management skill)
- •IB Commission Report (from ib-commission-tracking skill)
- •Variance Commentary
- •Forward-Looking: 3-month cash flow forecast, revenue projection
- •Action Items
Reporting Calendar
| Report | Frequency | Due Date | Recipient |
|---|---|---|---|
| Monthly Management Accounts | Monthly | 5th business day | Founders |
| Quarterly Review Pack | Quarterly | 10th business day of quarter | Founders, advisors |
| VAT Return | Quarterly | 1 month + 7 days after quarter end | HMRC |
| Annual Financial Statements | Annual | 9 months after year-end | Companies House |
| Corporation Tax Return | Annual | 12 months after year-end | HMRC |
| Corporation Tax Payment | Annual | 9 months + 1 day after year-end | HMRC |
API & Platform Requirements
| Platform | Endpoint / Resource | Auth | Purpose |
|---|---|---|---|
| Tide Bank | /v1/accounts/balance, /v1/transactions | TIDE_API_KEY | Cash position, transaction data |
| Supabase | All finance tables | SUPABASE_URL + SUPABASE_KEY | Operational metrics |
| Google Sheets | Financial model workbook | GOOGLE_SHEETS_API_KEY | Budget, actuals, models |
| Notion | Financial reports database | NOTION_API_KEY | Report storage and distribution |
| HMRC | MTD VAT API, Corporation Tax API | HMRC_API_KEY | Tax filing |
| Xero/FreeAgent | Chart of accounts, journals | ACCOUNTING_API_KEY | Future bookkeeping integration |
Quality Checks
- •Balance Sheet Balance: Total Assets = Total Liabilities + Shareholders' Funds. If not, investigate immediately never publish an unbalanced balance sheet.
- •Cash Reconciliation: Cash flow statement ending balance = Tide Bank balance at period end. Variance must be zero.
- •P&L Tie-Out: Revenue in P&L = Revenue tracking skill total. Expenses in P&L = Expense management skill total. Any difference documented.
- •Comparative Consistency: Prior period figures in current report match the figures published in the prior period's report. No unexplained restatements.
- •Tax Accuracy: Corporation Tax computation tax rate matches current statutory rate (25% / 19%). VAT return figures reconcile to sales and purchase records.
- •Timeliness: Reports delivered by stated due dates. Monthly accounts by 5th business day, no exceptions.
- •Completeness: All sections populated. No "TBD" or placeholder values in published reports. Missing data flagged with estimate and basis stated.
- •Narrative Quality: Variance commentary explains root cause, not just restates the number. Every material variance has a "so what" and recommended action.