Prompt Engineering for Finance — Better AI Outputs for Analysis and Reporting

Why Finance Teams Need Prompt Engineering

Finance professionals handle high-stakes communication — board papers, investor reports, variance analyses, and audit documentation. Generic AI outputs are not sufficient. Every number must be verifiable, every statement must be precise, and every recommendation must be defensible.

Prompt engineering for finance is about getting AI to produce outputs that meet the exacting standards of financial communication.

Key Techniques for Finance

Structured Output Prompting

Finance outputs need consistent structure. Define the format explicitly.

Example — Variance Analysis:

Analyse the following budget variances. For each line item, provide your analysis in this exact format:

[Line Item] — [Actual] vs [Budget] ([+/-]%)

• Cause: [1-2 sentence explanation of the most likely cause]
• Impact: [Effect on profitability, cash flow, or operations]
• Action: [Recommended response — investigate, accept, or adjust]
• Risk: [Low/Medium/High — potential for variance to continue]

Line items:

1. Revenue: RM12.5M vs RM11.8M (+5.9%)
2. COGS: RM5.6M vs RM4.7M (+19.1%)
3. Marketing: RM890K vs RM750K (+18.7%)
4. Headcount costs: RM3.1M vs RM3.4M (-8.8%)

Chain-of-Thought for Financial Reasoning

Force AI to show its reasoning step by step.

Example — Investment Analysis:

Evaluate whether we should invest S$200,000 in an AI automation project for our accounts payable process. Think through this step by step:

1. Current state: 3 AP staff processing 2,000 invoices/month at S$8/invoice
2. Projected state with AI: 1.5 staff + AI processing same volume at estimated S$3/invoice
3. Calculate the annual savings
4. Account for implementation costs (S$200K), ongoing AI licence (S$2K/month), and training
5. Calculate payback period
6. Assess risks (accuracy, staff transition, vendor dependency)
7. Provide a recommendation with confidence level

Role Prompting with Expertise

Specify the exact type of financial expert you need.

Example — Audit Preparation:

You are a senior external auditor with experience in MFRS/SFRS compliance for mid-size companies in Malaysia. Review the following revenue recognition approach and identify:

1. Any areas that may not comply with MFRS 15
2. Documentation gaps an auditor would flag
3. Recommended disclosures for the notes to financial statements Our approach: [describe revenue recognition method]

Comparative Analysis Prompts

Finance often needs side-by-side comparisons.

Example — Vendor Comparison:

Compare these 3 accounting software options for a Singapore SME with 50 employees and S$10M revenue. Create a comparison matrix with these criteria:

Criteria	Weight	Option A: Xero	Option B: QuickBooks	Option C: SAP Business One
Cost (annual)	25%
Multi-currency	15%
GST compliance	20%
Reporting depth	15%
Integration	15%
Scalability	10%

For each cell, provide: rating (1-5), brief justification, and the weighted score.

Finance Prompt Templates

Monthly Reporting

Write the management commentary for our monthly financial report. Use these exact headings: Revenue Performance, Margin Analysis, Operating Expenses, Cash Position, Outlook. Key data: [insert metrics] Tone: factual and concise. Maximum 500 words. Use bullet points for key figures. Highlight concerns with "Note:" prefix.

Board Paper Executive Summary

Write a 250-word executive summary for a board paper on [topic]. The summary must answer these 4 questions:

1. What is the issue or opportunity?
2. What are the key financial implications?
3. What are the options and recommended approach?
4. What decision is the board being asked to make? Use specific numbers. Avoid jargon. Assume the reader has 2 minutes.

Financial Model Narrative

Explain the assumptions behind this financial model to a non-finance audience. For each assumption, state: what it is, why we chose this value, what would change if we are wrong, and the sensitivity (how much the output changes per 10% change in the assumption). Assumptions: [list]

Audit Query Response

Draft a response to this audit query: [paste query]. Our position is: [describe]. Supporting evidence includes: [list]. The response should be: factual, concise (under 300 words), reference specific accounting standards, and avoid speculative language.

Safety Rules for Finance Prompts

1. Never input actual financial data into consumer AI tools — use enterprise plans only
2. Use illustrative figures when developing prompts, then replace with actual data internally
3. Never use AI for tax calculations — always verify with qualified professionals
4. Never share pre-release financial information with any AI tool
5. Always verify any regulatory references, accounting standards, or compliance claims generated by AI
6. Document AI usage in financial processes for audit trail purposes

Building a Finance Prompt Library

Organise by reporting cycle:

• Daily: Cash position summaries, AP/AR commentary
• Weekly: Revenue tracking narratives, variance flags
• Monthly: Management report commentary, board slides
• Quarterly: Investor communications, regulatory filings narratives
• Annual: Budget narrative, strategy documents, audit responses

Related Reading

• ChatGPT for Finance — Use ChatGPT for financial analysis, reporting, and compliance
• AI Governance for Finance — MAS and BNM compliance frameworks for AI in financial services
• Prompting Structured Outputs — Get consistent, formatted outputs for financial data