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Learn Depreciation in less than 5 minutes! #depreciation #accounting #finance #expenses

Hey everyone! 👋 Just published a new article on LinkedIn about "Accrued Expenses". It's a key concept in accounting, but often overlooked. This article explains what accrued expenses are, why they matter, and how to account for them. I've included some helpful examples, so you can easily see how this applies to your own business. Check it out and let me know what you think! #accounting #finance #business #accrued #expenses #financialreporting #bookkeeping #accountingtips #smallbusiness #entrepreneurship

Ever wondered what "unearned revenue" really means? 🤔 This blog post breaks down the concept in a simple way, explaining its accounting treatment and how it impacts financial reporting. #accounting #finance #business #unearnedrevenue #financialreporting #speakaccounting

Did you know that adding back depreciation to net income can help you calculate operating cash flow? That's just one example of how "Addbacks" are used in accounting. Learn more about this important concept in our latest blog post: https://lnkd.in/ejauicnx #Accounting #addbacks #SpeakAccounting #Speak_Accounting

Learn everything about bank overdraft!

What are the differences between FIFO, LIFO, and weighted average inventory valuation methods, and how do they impact a company's financial statements? FIFO (First-In, First-Out): Assumes the oldest inventory items are sold first. This method typically results in higher ending inventory and lower cost of goods sold (COGS) during inflationary periods. LIFO (Last-In, First-Out): Assumes the most recently acquired inventory items are sold first. It often leads to lower ending inventory and higher COGS during inflationary periods. Weighted Average Method: Calculates the average cost of inventory items based on the total cost of goods available for sale divided by the total number of units available for sale. This method falls between FIFO and LIFO in terms of its impact on financial statements. Each method has its implications for taxes, cash flow, and financial analysis. Companies must choose the method that best suits their specific needs and circumstances. https://lnkd.in/eecPfeUf #fifo #lifo #weighted_average #accounting #speak_accounting

Here's a quick accounting tip: Always reconcile your bank statements regularly. It helps catch errors, ensures accurate financial records, and keeps your accounts in check. Stay diligent with your reconciliations to maintain financial health! #accounting #reconcil #speak_accounting #tips

📊💼 Unlocking Financial Insights: The Power of Accounting Ratios 💡🔍 Ever wondered how businesses measure their financial health? Enter accounting ratios - the financial world's equivalent of a doctor's check-up! Let's break it down: 1️⃣ Understanding Accounting Ratios: These are quantitative measures derived from financial statements, providing insights into a company's performance, position, and efficiency. From liquidity to profitability, they cover it all! 2️⃣ Why Do They Matter? Accounting ratios play a pivotal role in analytical analysis, offering a panoramic view of a company's financial landscape. They help in: ↳Evaluating Performance 📈 ↳Facilitating Comparisons 🔄 ↳Predicting Trends 🔮 ↳Guiding Decision-making 🤔 ↳Flagging Red Flags 🚩 3️⃣ The Profitability Perspective: Profitability ratios, in particular, are the spotlight! They shed light on a company's ability to churn out profits relative to its resources. Think of them as the gold standard for investors, creditors, and management alike. 4️⃣ Key Profitability Ratios Demystified: ↳Gross Profit Margin: Reveals the efficiency of production or service delivery. ↳Net Profit Margin: Unveils how well a company controls expenses. ↳Interest Coverage Ratio: Indicates financial stability. ↳Net Profit to Equity Ratio: Measures return on shareholders' equity. ↳Operating Income to Sales Ratio: Reflects operational efficiency. In a nutshell, these ratios aren't just numbers; they're the compass guiding financial decisions. So, next time you peek into a company's financials, remember - the story lies in the ratios! 📊✨

10 Excel Functions You Should Know If You Work In Finance🌟 Download a free high-resolution PDF on our website (link in the picture). 1️⃣ SUMIFS A versatile function used to calculate the sum of values in a range that meets multiple specified criteria. It allows you to define multiple conditions and sum the corresponding values that satisfy those conditions. 2️⃣ IFERROR A function that helps handle errors in formulas. It allows you to specify a value or action to be taken if a formula returns an error, helping you display custom messages or alternative results instead of error codes. 3️⃣ XIRR Calculates the internal rate of return for a series of cash flows that occur at irregular intervals. It takes into account both the magnitude and timing of cash flows, providing a more accurate measure of investment returns when the cash flows are not evenly spaced. 4️⃣ XNPV Calculates the net present value of a series of cash flows that occur at irregular intervals, considering the specified discount rate. It helps determine the present value of cash flows, accounting for the time value of money and enabling better evaluation of investment projects. 5️⃣ PMT Calculates the periodic payment required to repay a loan or investment with a fixed interest rate over a specific period. It helps determine the constant payment amount needed to cover principal and interest expenses within the given time frame. 6️⃣ SLOPE A statistical function used to calculate the slope of a linear regression line between two sets of data points. It measures the relationship and direction (positive or negative) between the independent variable (x-values) and the dependent variable (y-values). 7️⃣ XLOOKUP A powerful function that allows you to search for a value in a range or array and retrieve a corresponding value from another column or row. It offers flexibility in searching for exact or approximate matches, handling errors, and performing lookups in both vertical and horizontal directions. 8️⃣ INDEX & MATCH: Functions often used together to perform more advanced lookups. INDEX returns a value from a specified range based on the row and column numbers provided. MATCH, on the other hand, finds the position of a specified value within a range. By combining these functions, you can perform lookups based on multiple criteria and retrieve the desired information. 9️⃣ EOMONTH Calculates the last day of the month based on a specified date. It helps with various date-related calculations such as determining project deadlines, tracking payment due dates, or calculating the end of a financial reporting period. 🔟 SEQUENCE Generates an array of sequential numbers based on specified parameters. It allows you to create a sequence of numbers with custom increments, starting points, and row or column orientations, enabling efficient creation of numeric series or dynamic arrays. Share this with your network and follow Financial Modeling World Cup for more educational content!