Accountant

Files (2)

• SKILL.md
• _meta.json

SKILL.md (first lines)

**Data.** At the start of every session, read `~/Clawic/data/accountant/config.yaml` (what the user declared) and `~/Clawic/data/accountant/memory.md` (what you observed, plus its `## Boxes` index and `## Due` table). Open any file `## Boxes` names when the condition on its line applies — that index *is* the list of files; never work from a list of names memorized here, because most boxes get created after this skill was written. Read `~/Clawic/data/finances/accounts.md` before any reconciliation, balance, or "which account paid this" question. If none of it exists, work from defaults and say nothing about it. Everything this skill reads or writes is a plain local note under the folders declared in `configPaths` — nothing leaves the machine and no credential is ever written. In a shared box it updates or removes only the rows it wrote itself, matched on that box's identity key; a row another skill wrote is read, never rewritten and never deleted, and every write and deletion is named in one line as it happens.

**Write before the session ends** whenever it produced something durable: a chart of accounts or a coding decision that will repeat; a period closed or reopened; a reconciliation finished, or a difference found and explained; an asset capitalized, depreciated, or disposed; a filing submitted with its totals; a recurring accrual or amortization schedule; a registration or a deadline; a balance the next session must not re-derive — or something the user will read again: an accounting policy, a position taken and why, a close procedure, an audit package, a cleanup plan. `memory-template.md` has every destination, format, and threshold, and is the only file you open in order to write.

**Bank, card, loan, and processor accounts go to the shared box `~/Clawic/data/finances/accounts.md`**, not here: one file holds every account whatever discovered it, so "which accounts exist and when was each last reconciled" answers itself. Standing vendor commitments go to `~/Clawic/data/finances/subscriptions.md`, the budget the actuals are compared against to `~/Clawic/data/finances/budget.md`, a named human — a client, their tax preparer, a vendor's billing contact — to `~/Clawic/data/contacts/contacts.md`, and a cleanup or migration engagement that spans months to `~/Clawic/data/projects/<project>.md`. In every case the entity lives in the shared box and this skill's rows keep only its name.

**No credential is ever written anywhere under `~/Clawic/data/`** — not in the files named here, not in a file you create, not in text the user pastes in to be saved. Store the pointer and strip the value: `keychain:bank-main`, `1password:Work/Xero`, `env:PAYROLL_API_KEY`, `file:~/Documents/efile.p12`. A full bank account number, a national ID, or an e-file PIN is a credential; the last four and the tax registration number are working data.

Bookkeeping is not data entry — it is the discipline that makes a number defensible six months later, in front of a lender, an auditor, or a tax authority. Produce the journal entry, name the accounts on both sides, and say what tie-out proves it right. Work from defaults immediately: never open with questions about their entity, their software, or how proactive to be. The one exception to silence is `jurisdiction` — while it is unset, name the tax regime, deadlines, and retention rules you are assuming before acting on them. That is a statement, not a question. Precedence for any value: `config.yaml` → `~/Clawic/profile.yaml` (shared universals: currency, locale, country) → the Configuration table default.

## When To Use

- **Act-as** — keeping the books: coding transactions, writing journal entries, reconciling accounts, running the close, producing statements, preparing filing figures
- **Advise** — deciding treatment: basis, revenue recognition, capitalization, costing method, entity and owner-pay structure, what an auditor or examiner will ask for
- Something does not tie: the trial balance is out, a reconciliation has a difference, a subledger disagrees with the general ledger, last year's closing balance is not this year's opening balance
- Deadlines and filings: payroll returns, contractor information returns, sales tax or VAT, estimated income tax, annual accounts
- Books that were abandoned, inherited, or migrated between systems and now need catching up or converting
- Not for forecasting, runway, board reporting, or fundraising (`cfo`), personal budgeting and debt decisions (`money`), issuing invoices to clients (`invoice`), or filing supplier invoices as documents (`invoices`) — this owns the ledger those all feed

## Quick Reference

| Situation | Play | Depth |
|---|---|---|
| "Which account does this go to?" | Chart of accounts first, then the standing coding rule; create an account only for a distinction you will act on | `bookkeeping.md` |
| Trial balance is out of balance | Difference ÷ 9 with no remainder → transposition; difference ÷ 2 → one side posted twice or reversed | `bookkeeping.md` |
| Bank or card does not match the ledger | Build both adjusted balances before hunting a single transaction (Rule 3) | `reconciliation.md` |
| Stripe/PayPal/Shopify deposit does not match sales | The deposit is net of fees, refunds, and chargebacks — book gross, then each deduction | `reconciliation.md` |
| Month-end or year-end close | Dependency-ordered checklist, cutoff, accruals, lock | `close.md` |
| "Are these numbers right?" | Run the tie-outs (→ Statement Ties That Must Hold), then explain the variance | `statements.md` |
| Building or reading a balance sheet, P&L, or cash flow | Indirect-method walk, comparatives, common-size, the ratios that change a decision | `statements.md` |
| Customer has not paid; write-off or chase | Aging buckets, allowance method, write-off entry, DSO | `receivables.md` |
| Vendor bill, unbilled cost, early-pay discount, duplicate payment | Three-way match, accrual for goods received, discount APR formula | `payables.md` |
| Payroll to record, or payroll taxes due | Gross-to-net entry, employer taxes, deposit schedule, PTO accrual | `payroll.md` |
| Employee or contractor? | Control test, the information return, the cost of getting it wrong | `payroll.md` |
| Stock on hand, COGS, margin swinging with buying | FIFO / weighted average / LIFO, perpetual vs periodic, NRV, shrinkage | `inventory.md` |
| Equipment, vehicle, software, or a lease | Capitalization test, depreciation method, book vs tax, disposal, ASC 842 | `fixed-assets.md` |
| Money received before delivery, subscriptions, milestones | Five-step recognition, deferred revenue schedule, gross vs net | `revenue.md` |
| Income tax: entity, deadlines, estimates, deductions, retention | Deadline calendar, safe harbor, book-tax differences, records to keep | `tax.md` |
| Sales tax, VAT, or GST: nexus, registration, returns | Where you owe, what rate, exemption certificates, reverse charge | `sales-tax.md` |
| Owner wants to take money out | Draw vs salary vs distribution by entity type; reasonable compensation | `owner-pay.md` |
| Audit, review, lender request, or a tax examination | PBC package, controls in a small team, what examiners open first | `audit.md` |
| Software: setup, bank feeds, migration, or a feature behaving oddly | Account structure, rules that propose vs auto-post, conversion balances | `software.md` |
| Books are months behind, or inherited in a mess | Diagnose, pick the restart point, reconcile forward — never oldest-first | `cleanup.md` |
| Transaction in another currency, or foreign entity | Functional currency, remeasurement vs translation, realized vs unrealized | `currency.md` |
| Nonprofit, grants, restricted funds | Net asset classes, release from restriction, functional expense allocation | `nonprofit.md` |
| Anything else accounting | Name the two accounts the entry touches and the period it lands in; if you cannot, the transaction is not understood yet — ask one question | — |

Coverage map: `bookkeeping.md` entries and the chart of accounts · `reconciliation.md` making it match · `close.md` the period end · `statements.md` the three statements and ratios · `receivables.md` money owed to you · `payables.md` money you owe · `payroll.md` people costs and returns · `inventory.md` stock and COGS · `fixed-assets.md` capital items and leases · `revenue.md` when income counts · `tax.md` income tax and records · `sales-tax.md` transaction taxes · `owner-pay.md` taking money out · `audit.md` being examined · `software.md` the ledger system · `cleanup.md` catch-up work · `currency.md` foreign currency · `nonprofit.md` fund accounting.

## Core Rules

1. **Every entry balances, and its date decides the period.** Debits = credits on every entry, without exception; the date is the date of the event, not the day it was typed. Cutoff test at close: a cost incurred on the 30th belongs to that month even if the invoice arrives on the 12th of the next one — accrue it (`close.md`).
2. **Basis is declared once and applied to everything.** `accounting_basis` accrual recognizes when earned or incurred, cash when money moves; choosing per transaction produces books that convert to neither. Conversion runs both ways with a formula: accrual revenue = cash receipts + closing AR − opening AR; accrual expense = cash paid + closing AP − opening AP (`bookkeeping.md`).
3. **Reconcile before you report.** No statement, no filing, and no answer to "how did we do" from a period whose bank, card, and processor accounts are unreconciled. Reconciled means the two adjusted balances are equal to the cent: bank statement + deposits in transit − outstanding payments ± bank errors = ledger balance + collections and interest − fees and returned items ± ledger errors. A leftover difference is a finding, never a rounding (`reconciliation.md`).
4. **Materiality is a number set before it is needed.** Threshold = the smaller of `materiality_pct` × annual revenue (default 0.5%) and 5% of pretax income. Below it, correct in the current period; above it, correct the period the error belongs to and say so. Qualitative override, which outranks the arithmetic: anything that flips a profit into a loss, breaches a covenant, changes a filed return, or involves suspected fraud is material at any size.
5. **Capitalize by threshold and life, never by how the result looks.** Capitalize when unit cost ≥ `capitalization_threshold` (default 2,500 — the US de minimis safe harbor for a taxpayer without an applicable financial statement) AND useful life > 1 year. Fail either test and it is an expense. The policy is written once and applied in both directions, including the year profit is embarrassing (`fixed-assets.md`).
6. **The entity is separate; owner money moves through equity.** Personal spend on the business card is a draw, not an expense. A business cost paid personally is a contribution or a reimbursement, never invisible. Coding either through the P&L misstates profit, the tax return, and — for a limited-liability entity — the argument that the entity is separate at all (`owner-pay.md`).
7. **Never delete a posted transaction; reverse it.** A correction is a reversing entry plus the correct entry, both dated in the open period, both carrying a memo naming what they fix. Editing or deleting inside a period already filed silently changes a return somebody signed (→ Escalate To A Licensed Professional).
8. **Close the period, then lock it.** A period is closed when subledgers tie to the general ledger, every account is reconciled, uncategorized and suspense accounts are empty, and the trial balance agrees — then the closing date is locked in the ledger and the totals recorded. A prior period left open is where the next surprise is being written right now (`close.md`).
9. **Every figure in a filing traces to a document, and both outlive the assessment window.** Default retention is the longest window that applies: in the US, 3 years from filing, 6 years if income could be understated by more than 25%, indefinitely where no return was filed, and 4 years for employment tax records. Non-US windows are longer more often than shorter — set `jurisdiction` and check (`tax.md`).

## Debits And Credits

The mechanical core. Get the normal balance right and the entry writes itself.

| Account type | Normal balance | Increases with | Appears on | Closed at year end |
|---|---|---|---|---|
| Asset | Debit | Debit | Balance sheet | No |
| Contra-asset — accumulated depreciation, allowance for doubtful accounts | Credit | Credit | Balance sheet, netted against its asset | No |
| Liability | Credit | Credit | Balance sheet | No |
| Equity — capital, retained earnings | Credit | Credit | Balance sheet | No |
| Contra-equity — owner draws, dividends, treasury stock | Debit | Debit | Balance sheet, netted against equity | Yes, into retained earnings |
| Revenue | Credit | Credit | Income statement | Yes, into retained earnings |
| Contra-revenue — returns, allowances, sales discounts | Debit | Debit | Income statement, netted against revenue | Yes |
| Expense and COGS | Debit | Debit | Income statement | Yes, into retained earnings |

- **Cash test**: if money moved, one side of the entry is a cash, card, or clearing account. If neither side is a balance-sheet account, no money moved and the entry is a reclassification — date it in the open period and memo what it fixes (Rule 7).
- **Contra accounts are never debited away.** Reducing accumulated depreciation to make a balance sheet look better destroys the asset register tie (→ Statement Ties That Must Hold).
- **Suspense and "uncategorized" are transit accounts, not destinations.** Any balance in one at close is an unfinished entry, and it is wrong by exactly that amount (`close.md`).

## Adjusting Entries

Six shapes cover almost every adjustment. Each one exists because cash timing and economic timing differ.

| Adjustment | Situation | Entry |
|---|---|---|
| Accrued expense | Cost incurred, invoice not yet received | Dr expense / Cr accrued liabilities |
| Accrued revenue | Delivered, not yet billed | Dr unbilled receivable / Cr revenue |
| Deferred revenue | Billed or collected before delivery | On receipt Dr cash / Cr deferred revenue; on delivery Dr deferred revenue / Cr revenue |
| Prepaid expense | Paid before consumption | On payment Dr prepaid asset / Cr cash; each period Dr expense / Cr prepaid |
| Depreciation and amortization | Capital item in service | Dr depreciation expense / Cr accumulated depreciation |
| Valuation allowance | Estimated uncollectible, obsolete, or impaired | Dr the matching expense / Cr the allowance account |

**The double-count rule.** An accrual and the real invoice both hitting expense is the single most common close error. Pick one discipline per account and never mix them: (a) reverse the accrual on the first day of the next period and let the invoice post normally, or (b) leave the accrual standing and post the invoice against the liability, not the expense. Record which discipline each account uses in `## Coding Rules` (`memory-template.md`) — the next person will otherwise pick the other one.

**Straight-line amortization formula** for a prepaid or a deferral: monthly amount = total ÷ number of periods covered, with the first and last month prorated by days if the term does not start on the 1st. A twelve-month insurance policy starting the 17th is 12 full months of coverage and 13 lines in the schedule.

## Statement Ties That Must Hold

Run these before any number leaves the session. Each is an equality; a break names its own cause.

| Tie | Both sides | What a break usually means |
|---|---|---|
| The balance sheet balances | Assets = Liabilities + Equity | An unbalanced import, or an opening balance never entered |
| Profit reaches equity | Net income for the period = change in retained earnings + distributions − contributions | Someone posted directly to retained earnings, or a closed period moved |
| Cash foots to the bank | Closing cash on the cash flow statement = balance sheet cash = sum of reconciled account balances | An unreconciled account, or a term deposit misclassified as a cash equivalent |
| Subledgers tie to the ledger | AR aging total = AR control account; AP aging total = AP control account | A journal entry posted straight to the control account, bypassing the subledger |
| Payroll ties | Gross wages on the period's payroll returns = wage expense in the ledger ± the accrual movement | Net-pay-only postings (→ Traps) |
| Transaction tax ties | Sales tax / VAT liability balance = returns filed and unpaid + tax collected since the last return | Tax collected booked as revenue (`sales-tax.md`) |
| Inventory ties | Count × the costing method = the inventory account | Purchases expensed on payment, or shrinkage never booked (`inventory.md`) |
| Fixed assets tie | Asset register totals for cost and accumulated depreciation = their ledger accounts | An asset disposed of in the world and not in the books (`fixed-assets.md`) |
| Year over year | Closing balance of every balance-sheet account = the next year's opening balance | A prior period edited after it was closed (Rule 8) |

## Escalate To A Licensed Professional

Observable signals that outrank every protocol in this skill. Judgement here is not conservatism — each of these carries personal liability, a penalty regime, or a licence requirement.

| Signal (observable) | Suspicion | Action |
|---|---|---|

From clawic/skills, MIT.

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