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Open finance skill

Cost rationalization review

Which non-headcount SG&A costs deserve a keep, renegotiate, consolidate, or stop decision?

Combine recurring spend, utilization evidence, contract terms, redundancy, and operating dependency into a decision queue.

Inputs

  • SG&A transactions
  • Contracts and renewals
  • Owner and usage evidence

Outputs

  • Savings candidates
  • Annualized opportunity
  • Implementation risks

Checks performed

  • Recurring spend
  • Redundancy
  • Contract and delivery risk

Guided synthetic example

See the check from input to decision

A business has multiple recurring SG&A vendors with uncertain ownership and overlapping services.

This is the operating model we use at Level. The percentages are estimated shares of the work in a typical review. Actual effort varies with data quality, complexity, and the issue found.

1

Start with the source records

About 15% of work
VendorAnnualized spendUsage evidenceRenewal
Example Data$24,000LowSep 30
Sample Reports$18,000UnknownMonthly
Demo Compliance$12,000ConfirmedDec 1
2

Run the deterministic check

About 20% of work

Combine recurring spend, utilization, renewal terms, redundancy, and operating dependency. Exclude headcount.

3

Surface the flagged result

About 10% of work

Needs review

$42,000 of annualized non-headcount spend requires owner review; none is classified as confirmed savings yet.

4

Use recorded finance judgment to analyze possible reasons

About 25% of work

At Level, we record the review logic, known explanations, and questions our finance professionals use in this situation. AI applies that documented human judgment to organize the most plausible reasons, without pretending it knows which reason is true.

Possible reasons to investigate

Low or unknown usage is not proof that a service is unnecessary. Contract, control, customer, and integration dependencies must be checked.

5

Make the final human judgment

About 20% of work

A Level finance professional validates the source evidence, challenges the AI-assisted analysis, and decides which explanation is supported.

Who relies on the service?
What obligation or workflow depends on it?
When can terms be changed without penalty?
6

Make the operating decision

About 10% of work

Assign an owner and a keep, renegotiate, consolidate, or stop decision before each renewal date.

Use this system

Start with the example, then inspect the structure

  1. Download the invented input and expected output.
  2. Replace one field at a time with a safe test value.
  3. Compare the result with the expected structure.
  4. Have a finance professional review every exception before acting.

MCP preview

run_synthetic_example {"slug":"cost-rationalization-review"}

Human review is part of the system

This check organizes evidence and surfaces exceptions. A person with finance domain expertise still needs to interpret the result, validate the source records, and discuss the operating decision.

Open source does not mean open client data. We publish reusable finance tools, checks, templates, and playbooks. Client records, workpapers, credentials, communications, and private configurations remain confidential.