Data & Finance for Work & Life
Also known as big-ticket items, fixed assets are the money-making gears of a company’s financial makeup. They’re long-term, can be intangible or intangible, and can be physical or non-physical. At the accounting level, they’re loaded onto the balance sheet upon delivery. Over the course of their lives, fixed assets are recorded on the income statement […]
Fixed Assets vs Total Assets: Difference & a Healthy Ratio Read More »
Roll forwards are a critical part of accounting consistency and integrity. You may have discovered roll forwards whilst reviewing general ledger transactions, or while exploring methods of accounting reconciliation. A roll forward is a simple concept. However, it has become an umbrella term that’s used to describe different accounting activities. In this article, we’ll clearly
Roll Forward in Accounting: Definition, Types, & Examples Read More »
Convertible loans and options intimidate many people, but they’re less complex than they seem. In the context of company share counts, they have a dilutive effect. This is due to the standard Earnings per Share (EPS) metric, which is net income divided by total shares. If there are convertible loans and other options that could
Convertible Loan & Stock Option Dilution: Examples for FDSO Read More »
Cash flow management is the lifeblood of all sizable businesses. Most companies use accounting software or ERPs to project short term cash flows based on the values of sales & purchases made on credit. However, predicting long term cash flows (>1 quarter into the future), requires manual analysis, since accountants have not provided the ERP
3 & 12 Month Cash Flow Projection: Excel Guide & Template Read More »
Cash is king — financial analysts and accountants know this well. But when a company grows to more than its founding team, understanding where cash is disbursed and received is not an easy task. One way to tackle this is to directly track all cash transactions, such as receipts from customers or payments to employees,
Excel Guide: How to Prepare Cash Flows with the Indirect Method Read More »
“Lenders” and “creditors” are an essential part of the economy. The terms represent the same underlying idea. And yet, a small survey of my colleagues revealed that some consider them opposites. It’s easy to see why: though they represent the same concept, we often use them in opposite situations. The purpose of this article is
Lender vs Creditor: What’s the Difference? Read More »
The term “stakeholder” has gained popular use in the past decade, but the principle behind the term is as old as capitalism. A stakeholder is an entity or individual that has an interest in the success of a project. While that interest may be moral, sentimental, or familial, more often than not, it’s financial. This
Is a lender a stakeholder? Read More »
Accountants can optionally reverse adjustments at the beginning of an accounting period if a portion of the service, or the receipt of the bill for a service, occurs in the period immediately before. This process is similar to the adjustment of asset value using current depreciation. However, unlike operational adjustments, depreciation adjustments are never reversed
Reversing Entry for Depreciation Expense: Does it Exist? Read More »
If you’ve spent time matching accounts across financial statements, then you know the importance of retained earnings. Without them, your balance sheet would fall out of equilibrium with every sale you make, and expense you incur. In fact, they are so critical to accounting entries that we could say retained earnings are to liabilities &
Retained Earnings: Corresponding Journal Entries Read More »
I recently sat in on a board meeting where the leaders of a $800M revenue company discussed how they could “go public,” and do it in less than 2 years. After some chat, the terms “Private Placement” (PP) and “Direct Public Offering” (DPO) came up. The consensus was that both are cheaper and quicker than
Private Placement vs. Direct Public Offering: Complete Comparative Tables Read More »
