Expense Analysis and Optimization AI Prompt

Analyze the expense structure of this business and identify optimization opportunities.

Expense data: {{expense_data}} (by category, department, period)
Revenue data: {{revenue_data}}
Benchmarks: {{industry_benchmarks}}

1. Expense categorization:
   - Fixed vs variable costs: which expenses are truly fixed regardless of revenue?
   - Discretionary vs non-discretionary: which can be reduced without impacting operations?
   - Direct vs indirect: which are directly tied to revenue generation?

2. Expense as % of revenue trend:
   For each major expense category:
   - Expense / Revenue % for each of the last {{n}} periods
   - Is the ratio improving (declining) or worsening (rising) over time?
   - At what revenue level should expenses show significant operating leverage?

3. Benchmark comparison:
   - Compare each major expense line to industry median % of revenue
   - Categories above benchmark: potential over-investment or inefficiency
   - Categories below benchmark: potential under-investment or competitive advantage

4. Headcount and productivity analysis:
   - Revenue per employee: trend and benchmark comparison
   - Expense per employee: which departments have the highest cost per head?
   - Is headcount growth outpacing revenue growth? (Operating leverage going in wrong direction)

5. Top 5 optimization opportunities:
   For each opportunity:
   - Expense category
   - Current spend vs benchmark
   - Estimated annual savings
   - Implementation risk (Low/Medium/High)
   - Required action

6. Scenario: what if we reduce expense category X by Y%?
   - Impact on EBITDA margin
   - Impact on annual EBITDA in dollars
   - Any revenue risk from the reduction?

Return: expense structure table, benchmark comparison, operating leverage analysis, and top 5 optimization opportunities with savings estimates.