November 21, 2024
Analyzing Annual Reports using CHATGPT | CHAT GPT for Finance and FP&A Episode 1
 #Finance

Analyzing Annual Reports using CHATGPT | CHAT GPT for Finance and FP&A Episode 1 #Finance


are you spending hours and hours to read analyze and make sense of annual reports in this CashNews.co I’ll show you how to extract actionable insights from any annual report in minutes using chat GPT so don’t let robots take your job instead learn how to partner with AI tools

like CH GPD to save time impress your manager and stay ahead in your career let’s get started first of all let’s understand why working with annual report just so overwhelming every none;">Finance professional knows the struggle you get handed a 300 page report from your boss and he asks you to analyze that report and give him the key insights from it it’s an important task but let’s be very honest most of the times you don’t even know from where you need

to start you realize that reading 300 plus pages to extract what matters can take you hours and sometimes even days the stakes here are high missing a key Insight could mean very tough questions from your boss or your client so the pressure is real and the clock is always sticking what if there is

a way to cut through the noise and get get straight to the insights that matter that’s where Chad GPD comes in it’s like having a personal assistant for doing your Financial Analysis just waiting ready to help you it is like having an AI powered intern by your side

ready to tackle the most complex reports but here is the catch chat GPD is only as good as the questions that you ask without the right prompts it might give you very generic or even incomplete answers for example if you give vag prompts it can result into misleading responses which may not be very

accurate that’s why you need to approach this in a very strategic way so let’s get into the seven step framework of using CH GPD to analyze any annual report step number one is that you should understand the annual report very thoroughly you should know the different parts of the annual

report such as the Financial Statements pnl Balance Sheet Cash Flow statement notes to account management discussion and Analysis financial highlights including key metrics like Revenues Profits and expenses risk

factors potential challenges the company is facing and so on and so forth next let’s move to step number two this is where you will log to chat GPT and attach the pdf version of the annual report so that chat GPT can analyze that okay so now what I’ve done is I’ve logged into my

chat GPT account and I have a paid subscription which allows me to attach files and share that with chat GPT with which I can interact right now I am on my chat GPD where I’m attaching and uploading a file from my computer and I have downloaded annual report of a company named tataa motors

which is a 520 page annual report which I am attaching into chat GPT since it’s a heavy file it might take a few seconds to upload once it uploads I will give it a very simple prompt and I will check with chat DPT that is it able to read the file that I have shared and let’s see what it

says okay so it confirms that I can read the file you shared let me know any specific information or analysis you need from the document so in the next step which is Step number three I will share some prompts which will help me summarize information from the report okay so in this step we are

trying to summarize information from the report for any insights that we are looking for so let me share one prompt with chat dpd and let’s see if it is able to execute that okay so I’m sharing and asking chat Duty summarize the key points from the management discussion and Analysis

section of the report in three bullet points let’s see if it is able to do that okay so it does a fairly decent job of coming up with the three key points which are from the MDA analysis which is including your financial performance segment highlights and operational Improvement in The Next

Step which is Step number four we will try some prompts which will help us do some Financial Analysis so let me share some prompts with chat dpd which will help me analyze data so let me start with analyzing the Revenue numbers okay so the prompt I’m sharing

with chat dpd is analyze the Revenue trends for the past three years and comment on the company growth okay and there you see it gives you the Revenue numbers for fy22 23 24 and also the analysis on the growth of the last three years along with the key drivers and

some management commentary okay let me try one more uh analysis prompt okay let’s see if it is able to identify the trend in gross Profit or operating Profit for the past 3 years okay now it is searching and based on the report and the web it has come up with

the summar summarized version of the operating Profits for fy22 fi23 and 24 and also it is giving me some basic commentary on the trends for the last 3 years in the next step with is Step number five let’s see if it is also able to give us some strategic commentary okay so

let me now ask some more questions to it and let me see if it is able to execute that okay so let me ask it a question which is on the lines of what are the company’s strategic priorities for next year okay so now now now I’m not asking about the historical information I’m asking

about the future or for the next year okay so based on the management commentaries and discussion and Analysis it’ll come up with a summary and it has come up with a decent summary which summarizes the Strategic priorities for the next year and you can see the four bullet points or five

bullet points which are I believe is they’ve done a good job of summarizing what is there in the annual report with that we move to step six now you have done the analysis okay let me try one more prompt and let’s see if it can answer this which is how does the company plan to tackle

its ke risk okay and it has come up with a decent enough answer uh against each and every risk item it has come up with a mitigation strategy or discussions what has happened with the management on those risk areas with that what we’ll do is we’ll move into the step six which is

summarizing the information into a PowerPoint slide which is the end output which is required or which is required as a part of this project so let me do that so what I’ll do is I’ll again give Chad gpd1 prompt which is to create a concise Slide summarizing the company’s

performance and stat goals so this is what we are looking as an output let’s see if it is able to generate a SL okay so I think it is creating a code which will execute a PowerPoint slide as an output and let’s see if it is able to do that so if you notice it it throw an error and it

said that it was not able to do it but now it is retrying it let’s see if it is able to do that in the second attempt okay so in the second attempt it was able to generate the PowerPoint and let’s see if it is able to do a decent enough job with this PowerPoint okay so I downloaded the

pile by click you’ve seen that chat GPD is a powerful tool that can transform how you analy annual reports but like any machine or tool it is not perfect while it is great at summarizing and extrating information it does not understand context like we human does blindly trusting chat DP can

lead to errors that can impact your work for example it may misinterpret Financial jargon or skip over some nuances it may also not cat certain discrepancy unless explicitly asked for it may also not sometimes assess the broader context or the Strategic implications the key here is to treat CH GPD

as your assistant and not a decision maker to ensure accuracy and reliability you should always cross check its output with the original report for example if it highlights a certain risk factor you make sure that it aligns with the source document also you can add your unique observations and

context chat GPD can summarize but only you can connect the dots to create actionable insights so cross check chat gpt’s output with the original report for accuracy and add any additional context or observations that are unique to your analysis unlike 10 years ago today it’s not enough

just to crunch numbers your ability to extract actionable insights and deliver them effectively is what sets you apart but how do you consistently add value when there is so much data to process the reality is clear AI is changing the game in

style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance and fpn while some fear that tools like CH GPD might replace their roles the real risk lies in not adapting falling behind means missing opportunities to lead influence and grow your career by using chbd you are

not just saving time you are positioning yourself as a forward thinking professional who delivers value at lightning speed you are not just analyzing data you are shaping decisions and here is the truth about ai ai isn’t here to replace you it’s here to improve your life the

professionals who embrace it will be the ones leading the future of Finance so are you ready to take your AI skills to the next level don’t just stop here check out our full chat GPD

for Finance and fpna course where you will learn all the tools and techniques to save time deliver insights and stay ahead in your career if you want a live and interactive

experience join our live AI for Finance and fpna masterclass to get hands-on experience and Real Time answers to your questions click on the link in the description below to

enroll now and unlock the future of Finance with AI and CHP

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