Financials Tool

The Financials tool creates professional-grade financial statements from your accounting data. It transforms general ledger transactions or summarized account data into properly formatted Income Statements (P&L) and Cash Flow Statements that follow standard accounting conventions.

What the Financials Tool Does

The Financials tool takes your accounting data and produces:

• Income Statements (P&L) — Revenue, COGS, Gross Profit, Operating Expenses, Operating Income, and Net Income
• Cash Flow Statements — Operating, Investing, and Financing activities with proper reconciliation
• Period Comparisons — Side-by-side statements with variance calculations

Unlike manual spreadsheet work, the tool:

• Automatically classifies accounts into the right categories
• Handles debit/credit sign conventions correctly
• Validates that subtotals and totals calculate properly
• Formats output following accounting standards

When to Use It

Use the Financials tool when you need to:

• Generate a P&L from QuickBooks, Xero, or other accounting exports
• Create cash flow statements from general ledger data
• Compare financial performance across periods
• Produce formatted financial reports for stakeholders

When NOT to Use It

The Financials tool isn’t the right choice for:

• Balance sheets (assets, liabilities, equity snapshots)
• Ad-hoc financial calculations or ratios
• Data that isn’t structured as accounting transactions
• Datasets that need extensive cleaning or transformation first

Data Requirements

The Financials tool works best with properly structured accounting data.

Required Data Structure

Your data must be flat (not nested) with columns for:

Column Type	Examples	Purpose
Account identifier	Account Code, Account Name, AccountRef	Identifies the GL account
Amount	Amount, Debit, Credit	Transaction values
Period (optional)	Date, Month, Quarter	For filtering or comparisons

Good Data Examples

Summarized by Account:

Account_Name          | Amount
----------------------|---------
Product Sales         | 150,000
Service Revenue       | 50,000
Cost of Materials     | -45,000
Salaries Expense      | -60,000

Transaction-Level with Debits/Credits:

Account_Code | Account_Name      | Debit  | Credit | Date
-------------|-------------------|--------|--------|------------
4100         | Product Sales     | 0      | 50,000 | 2024-01-15
5100         | Materials         | 15,000 | 0      | 2024-01-15

QuickBooks and Nested Data

Flatten Before Using

QuickBooks and similar systems often export nested JSON with Line arrays. This data must be flattened before the Financials tool can process it.

Ask Querri to “flatten the Line items from this QuickBooks export” first, then request your financial statements.

How to Request Financial Statements

Simply describe the statement you need in natural language.

Income Statement / P&L

"Create a P&L from this general ledger data"
"Generate an income statement for Q4 2024"
"Build a profit and loss statement showing revenue, expenses, and net income"

Cash Flow Statement

"Create a cash flow statement from this data"
"Generate a statement of cash flows for 2024"
"Show operating, investing, and financing cash flows"

Period Comparisons

"Create a P&L comparing Q3 and Q4"
"Show income statement with this month vs last month"
"Generate a year-over-year comparison with variance"

Understanding the Output

Income Statement Structure

The tool produces a hierarchical P&L following standard accounting format:

Revenue
  Product Sales                    $150,000
  Service Revenue                   $50,000
Total Revenue                      $200,000

Cost of Revenue
  Materials                         $45,000
  Direct Labor                      $30,000
Total Cost of Revenue               $75,000

Gross Profit                       $125,000

Operating Expenses
  Sales & Marketing                 $25,000
  General & Administrative          $35,000
Total Operating Expenses            $60,000

Operating Income                    $65,000

Other Income/(Expense)
  Interest Expense                  ($5,000)
Total Other                         ($5,000)

Net Income                          $60,000

Cash Flow Statement Structure

Cash Flow from Operating Activities
  Net Income                        $60,000
  Depreciation & Amortization       $10,000
  Changes in Working Capital        ($8,000)
Net Cash from Operating             $62,000

Cash Flow from Investing Activities
  Capital Expenditures             ($25,000)
Net Cash from Investing            ($25,000)

Cash Flow from Financing Activities
  Loan Proceeds                     $50,000
  Loan Repayments                  ($20,000)
Net Cash from Financing             $30,000

Net Change in Cash                  $67,000
Beginning Cash Balance              $33,000
Ending Cash Balance                $100,000

Output Columns

Column	Description
Line Item	Account or category name (indented for hierarchy)
Amount	Dollar value (negative shown in parentheses)
Type	”header”, “account”, “subtotal”, or “total”

For period comparisons, you’ll also see:

• Period columns (e.g., Q3 2024, Q4 2024)
• Variance (absolute change)
• Variance % (percentage change)

Account Classification

The tool automatically classifies accounts based on:

By Account Code

Code Range	Classification
4000-4999	Revenue
5000-5999	Cost of Goods Sold
6000-6999	Operating Expenses
7000-7999	Other Income/Expense
8000-8999	Interest & Taxes

By Account Name

The tool recognizes keywords like:

• Revenue: “sales”, “revenue”, “income”, “fees”
• COGS: “cost of goods”, “materials”, “direct labor”
• Expenses: “expense”, “salary”, “rent”, “utilities”
• Other: “interest”, “gain”, “loss”, “tax”

By Account Type

If your data includes an AccountType column (common in QuickBooks exports):

• Income → Revenue
• Expense → Operating Expenses
• Cost of Goods Sold → COGS
• Other Income / Other Expense → Other

Improve Classification

For best results, ensure your source data has clear account names or codes. If accounts are misclassified, you can ask Querri to reclassify specific accounts before regenerating the statement.

Preparing Your Data

Step 1: Load Your Accounting Data

"Load the general ledger export from my files"
"Connect to my QuickBooks data"

Step 2: Check the Structure

"What columns are in this data?"
"Show me sample rows"

Look for:

• Account identifiers (name or code)
• Amount columns (single amount or debit/credit)
• Date columns for period filtering

Step 3: Flatten if Needed

For nested QuickBooks data:

"Flatten the Line items from this journal entries export"
"Unnest the transaction details"

Step 4: Aggregate if Large

For large transaction datasets (>50,000 rows):

"Summarize transactions by account and month"
"Aggregate the GL data by account code"

Step 5: Generate Statement

"Now create a P&L from this data"

Tips for Better Results

Be Specific About Periods

"Create a P&L for January through March 2024"

Not:

"Create a P&L" (if data has multiple years)

Request Comparisons Explicitly

"Create a P&L comparing 2023 to 2024 with variance"

Verify the Output

After generating a statement:

"Do the subtotals add up correctly?"
"Verify Gross Profit equals Revenue minus COGS"

Ask for Specific Sections

If you only need part of a statement:

"Show me just the operating expenses section"
"What's the breakdown of revenue by account?"

Troubleshooting

”Accounts aren’t classified correctly”

The tool may misclassify accounts with ambiguous names. Fix by:

"Reclassify 'Misc Revenue' as operating expense"
"Move 'Equipment' from COGS to capital expenditures"

“Totals don’t match my accounting system”

Check for:

• Missing accounts in your export
• Date filtering differences
• Debit/credit sign convention issues

"Compare total revenue here to my QuickBooks P&L"
"Are there any accounts in my data that weren't included?"

”Data is nested or has Line arrays”

Flatten first:

"This has nested Line items. Flatten them so each line is a separate row"

“Statement is missing sections”

The tool only includes sections that have data:

"Are there any investing or financing accounts in this data?"
"What account types are present?"

Real-World Example

Starting Point: QuickBooks Journal Entries export with nested Line arrays

Step 1: Load and examine

"Load the journal entries CSV and show me what's in it"

Step 2: Flatten the nested data

"Flatten the Line items so each transaction line is a separate row"

Step 3: Join with Chart of Accounts

"Join this with my Chart of Accounts to get account names and types"

Step 4: Filter to period

"Filter to Q4 2024 transactions only"

Step 5: Generate statement

"Create a P&L from this data"

Step 6: Compare periods

"Now create a P&L comparing Q4 2024 to Q4 2023"

Next Steps

• Learn about the Researcher Tool — AI-powered classification and extraction
• Learn about the Forecaster Tool — Predict future financial trends
• Review Working with Dates — Period filtering and comparisons
• Explore Aggregating Data — Summarize before generating statements