SmallCapGems

Depreciation vs. Amortization vs. Impairment Original Content Creator: Anders Liu-Lindberg (Give him a follow) ---------- Do you know how your balance sheet impacts your income statement? It's the Depreciation vs. Amortization vs. Impairment Showdown! These aren't the only items stemming from your balance sheet hitting your income statement but they usually make up the largest portion! DEPRECIATION Depreciation is a method used to allocate the cost of tangible assets (such as buildings, machinery, and vehicles) over their useful lives. It represents the systematic reduction in the value of an asset due to wear and tear, obsolescence, or other factors. Financial Statement Impact Depreciation expense is recorded on the income statement, reducing the company's net income. Simultaneously, an equal amount is recorded as an accumulated depreciation contra-asset account on the balance sheet. This reflects the portion of the asset's value that has been used up over time. Four ways to optimize depreciation 1. Asset utilization 2. Predictive maintenance 3. Asset tracking 4. Resale and repurposing AMORTIZATION Amortization is similar to depreciation but applies to intangible assets (such as patents, copyrights, and trademarks) that have a finite useful life. It's the process of expensing the cost of these intangible assets over their estimated useful lives. Financial Statement Impact Similar to depreciation, amortization expense is recorded on the income statement, reducing net income. The corresponding contra-asset account, called accumulated amortization, is created on the balance sheet to represent the portion of the intangible asset's value that has been used up. Four ways to optimize amortization 1. Intangible asset valuation 2. Usage-based amortization 3. Strategic partnerships 4. Legal protection IMPAIRMENT Impairments occur when the carrying value of an asset on the balance sheet exceeds its recoverable amount. It indicates that the asset's value has declined significantly, often due to changes in market conditions, technological advancements, or other factors. Financial Statement Impact When an impairment occurs, the company needs to adjust the carrying value of the impaired asset down to its recoverable amount. This leads to a non-cash impairment charge on the income statement, reducing net income and overall assets on the balance sheet. Four ways to optimize impairments 1. Scenario analysis 2. Regular revaluation 3. Contingency plans 4. Strategic diversification ---------- ♻ 𝐋𝐢𝐤𝐞, 𝐂𝐨𝐦𝐦𝐞𝐧𝐭, 𝐑𝐞𝐩𝐨𝐬𝐭 to share with your network ♻

10 Reasons Your High Performers Are Quitting (And how to keep them) Original Content Creator: Gav Blaxberg (Give him a follow) ---------- High performers are the backbone of any successful team. Losing them can set your organization back significantly. Understanding why they’re leaving is crucial to creating a supportive environment that retains top talent. Here are 10 reasons to consider: 1. Lack of Growth Opportunities ↳ High performers seek advancement; a stagnant role will drive them away. ↳ Provide clear paths for career development and skill enhancement. 2. Unchallenging Work ↳ Boredom leads to disengagement. ↳ Assign stimulating projects that push their limits. 3. Feeling Undervalued ↳ Neglecting to recognize contributions can be demoralizing. ↳ Celebrate achievements to show appreciation for their hard work. 4. Toxic Work Culture ↳ A negative environment drives talent away. ↳ Foster a culture of respect, inclusion, and positivity. 5. Burnout ↳ Overworking leads to exhaustion and disengagement. ↳ Promote work-life balance and prioritize mental health. 6. Micromanagement ↳ Lack of autonomy can frustrate high achievers. ↳ Empower your team with trust and independence. 7. Poor Leadership ↳ Inconsistent leadership can lead to uncertainty. ↳ Invest in training leaders to inspire and guide effectively. 8. Lack of Purpose ↳ High performers need to believe in the mission. ↳ Clearly communicate your vision and values. 9. Compensation Issues ↳ Competitive pay is essential to retain top talent. ↳ Regularly assess compensation packages to remain attractive. 10. Limited Recognition ↳ Feeling overlooked can lead to dissatisfaction. ↳ Regularly highlight both individual and team accomplishments. Investing in your high performers pays off in retention and morale. What strategies have you found effective in keeping your top talent? Let’s discuss in the comments ⬇️ ---------- ♻ 𝐋𝐢𝐤𝐞, 𝐂𝐨𝐦𝐦𝐞𝐧𝐭, 𝐑𝐞𝐩𝐨𝐬𝐭 to share with your network ♻

Your financial models don’t just need better numbers. They need better strategies too! Original Content Creator: Aleksandar Stojanović, MSc. (Give him a follow) ---------- Ever heard of the "Decision-Making Effect?" The best financial models help businesses: 1. See exactly where their money is going. 2. Optimize operational costs to improve margins. 3. Make smarter investment decisions with clear ROI. In other words... A great financial model doesn’t just crunch numbers - it helps you grow strategically. Here’s how to build one: 1. Include dynamic cash flow tracking. 2. Start with precise revenue forecasts. 3. Add contingencies for risk mitigation. Want to see what a winning model looks like? Let’s discuss how accurate financial models can transform your business. ---------- ♻ 𝐋𝐢𝐤𝐞, 𝐂𝐨𝐦𝐦𝐞𝐧𝐭, 𝐑𝐞𝐩𝐨𝐬𝐭 to share with your network ♻

Accounting vs. Finance: What's the difference? Original Content Creator: Brian Feroldi (Give him a follow) ---------- Here’s a quick breakdown 📚 Grab my FREE accounting infographic ebook: 🔗 → https://lnkd.in/e42FVvKm ROLE TYPES 📚 Accounting: Compliance-focused, detail-oriented, process-driven 📊 Finance: Strategic, forward-looking, decision-making-focused KNOWLEDGE 📚 Accounting: GAAP, IFRS, tax laws, financial statements, audit procedures 📊 Finance: Capital markets, financial modeling, strategic planning, risk management SKILLS 📚 Accounting: Financial reporting, auditing, tax compliance, bookkeeping, financial controls 📊 Finance: Financial analysis, investment analysis, forecasting, budgeting, planning DESIGNATIONS 📚 Accounting: CPA, CMA, CIA, CGMA 📊 Finance: CFA, FRM, CAIA, CPA CAREER PROGRESSION 📚 Accounting: Staff Accountant → Senior Accountant → Accounting Manager → Controller → CFO 📊 Finance: Financial Analyst → Senior Financial Analyst → Finance Manager → CFO TYPE OF WORK EXPECTED 📚 Accounting: Audit, tax, consulting, forensic accounting, risk management 📊 Finance: Investment banking, private equity, venture capital, corporate strategy, treasury ALTERNATIVE CAREER PATHS 📚 Accounting: Partner in a firm, transition to consulting or forensic accounting 📊 Finance: Transition to investment banking, private equity, venture capital Here's an easy way to remember the difference: Accounting is BACKWARD looking. Finance is FORWARD looking. ---------- ♻ 𝐋𝐢𝐤𝐞, 𝐂𝐨𝐦𝐦𝐞𝐧𝐭, 𝐑𝐞𝐩𝐨𝐬𝐭 to share with your network ♻

10 Visuals to Transform Your Mindset in Just 4 Minutes 🌟 Original Content Creator: Clifton Sellers (Give him a follow) ---------- 1️⃣ One Step at a Time ↳ Progress doesn’t need to be perfect—it just needs to keep moving forward. 2️⃣ Consume What You Want to Become ↳ What you feed your mind fuels your reality. Choose wisely. 3️⃣ Things You Can Control ↳ Your actions, mindset, and effort—focus on your power, not what’s out of your hands. 4️⃣ Control Your Mindset ↳ Master your thoughts, and you’ll master your path. 5️⃣ Your Growth is Beautiful and Unique ↳ No one else’s journey looks like yours, and that’s your superpower. 6️⃣ You’re One Idea Away from a Breakthrough ↳ That next spark could change everything. Don’t stop dreaming. 7️⃣ Redefine Success ↳ Success is personal. Make it about what truly fulfills you. 8️⃣ Don’t Be Afraid to Accept Help ↳ Let others in—your strength grows in collaboration. 9️⃣ Bounce Back Better ↳ Every setback is a setup for a stronger comeback. 🔟 Learn From Life ↳ Each lesson shapes your story. Make it one you’re proud to tell. Which one resonates with you? Let's chat below ⬇️ ---------- ♻ 𝐋𝐢𝐤𝐞, 𝐂𝐨𝐦𝐦𝐞𝐧𝐭, 𝐑𝐞𝐩𝐨𝐬𝐭 to share with your network ♻

Offering a high salary is great and something you should do. But it's not going to win people over on it's own. Original Content Creator: Gary Travis (Give him a follow) ---------- Loyalty doesn't come from a paycheck. You're also going to have to treat them with genuine respect. If you can’t give your employees a reason to come to work every day, offering them a corner office isn't going to help things. ---------- ♻ 𝐋𝐢𝐤𝐞, 𝐂𝐨𝐦𝐦𝐞𝐧𝐭, 𝐑𝐞𝐩𝐨𝐬𝐭 to share with your network ♻

Average leaders talk. Great leaders own mistakes & empower teams. Original Content Creator: Dr. Elise Victor (Give her a follow) ---------- What separates great from average? These powerful words and statements. Building Trust & Ownership: ↳ "I was wrong. You were right." ↳ "I trust you. Run with it." Fostering Growth & Innovation: ↳ "Tell me what I'm missing." ↳ "You don't need my permission, go for it." Creating Psychological Safety: ↳ "What's challenging you most right now?" ↳ "I know that wasn't easy, thank you." Embracing Diversity & Collaboration: ↳ "I'll figure it out with you." ↳ "We're in this together." A leader’s words echo far beyond the moment they're spoken. Are you hearing these words? Are you saying these words? If not, it might be time for a leadership check. ---------- ♻ 𝐋𝐢𝐤𝐞, 𝐂𝐨𝐦𝐦𝐞𝐧𝐭, 𝐑𝐞𝐩𝐨𝐬𝐭 to share with your network ♻

How I craft hooks that captivate... Mediocre hooks are killing your content. Original Content Creator: Charlie Hills (Give him a follow) ---------- You have 2 seconds to capture attention. If your hook is weak, no one will click. Key elements of effective hooks: 1) Specificity 2) Relatability 3) Engagement 4) Value Proposition 5) Action-Oriented Language Avoid these pitfalls: - Lack of Clear Value - Generic Statements - Uninspired Language - Lack of Engagement - Vagueness Great hooks clearly outline outcomes: + They create personal connections + They evoke curiosity or emotion + They highlight benefits + They inspire action Master the art of the hook Capture attention from the start Drive engagement with your content Stand out in a crowded digital space Craft hooks that resonate. Your engagements grows. What's your go-to formula? ---------- ♻ 𝐋𝐢𝐤𝐞, 𝐂𝐨𝐦𝐦𝐞𝐧𝐭, 𝐑𝐞𝐩𝐨𝐬𝐭 to share with your network ♻

Let’s be honest ↓ Original Content Creator: Andy Mewborn (Give him a follow) ---------- ♻ 𝐋𝐢𝐤𝐞, 𝐂𝐨𝐦𝐦𝐞𝐧𝐭, 𝐑𝐞𝐩𝐨𝐬𝐭 to share with your network ♻

7 lies the world has told you about success: Original Content Creator: Jade Bonacolta (Give her a follow) ---------- ♻ 𝐋𝐢𝐤𝐞, 𝐂𝐨𝐦𝐦𝐞𝐧𝐭, 𝐑𝐞𝐩𝐨𝐬𝐭 to share with your network ♻