Most small business owners and single entrepreneurs start their business because they are good at what they do and want to take on the monetisation opportunities their offerings have. But running a business needs accounting and you cannot help but follow two major accounting methods, accrual vs cash basis accounting. Choosing one of these two… Continue reading Accrual vs. Cash Basis Accounting: A Guide to Accounting Methods for Small Business
Learn how to read cash flow statements, interpret, and analyse them in context through this step-by-step detailed guide. If you are running a business, building a startup, or advising clients on anything financial, understanding how money moves in and out of a business is not optional, but essential. A profit and loss statement cannot always… Continue reading How to Read A Cash Flow Statement: A Detailed Step-by-Step Guide
Two titles which come to mind when exploring the complex crossroads of financial leadership on the private and public fronts are Controller and Comptroller. While the terms are interchangeable at some level, they are roles that can look very different depending upon the organisational context. Practicing Financial professionals, HR personnel and individuals who are into… Continue reading Comptroller vs Controller: Understanding the Distinctions in Finance Leadership
Few skills are more important to analysts, investment bankers, and corporate strategists than the ability to value a business or asset. This is where modeling for equity valuation in Excel comes in. Excel remains widely used to construct valuation appraisals due to its flexibility, transparency, and ubiquity. This in-depth tutorial will cover what valuation modeling… Continue reading What is Valuation Modeling in Excel? Best Practices
In the world of finance and business leadership, there is one truth that is universally acknowledged that profits are impressive, but cash flow means everything. Income statements demonstrate profitability, but not necessarily liquidity or sustainability. And that is where an analysis of cash flows is so important. In this guide, we’ll discuss why cash flow… Continue reading Cash-Flow Analysis for Business Leaders: Metrics that Matter to Investors
Year-over-year is a financial assessment that compares the results of a financial analysis metric to a comparable metric for the previous year. It allows businesses and analysts to track long-term trends free of seasonal effects, providing a cleaner sense of what is really growing or shrinking. YOY in financial models is also used to forecast… Continue reading Year-Over-Year (YOY): Meaning and Examples in Financial Analysis and Financial Models
There’s no two ways about it: when it comes to accounting, precision is key. Your business is required to maintain accurate financial records, and it makes sense to do so if you want to make sound decisions, be in the good graces of the IRS, and be able to produce reliable reports. An important tool… Continue reading What is a Trial Balance? Definition, Example & Role in Financial Statements
Everything in finance is about trends and performance. But how can investors, analysts, and business owners monitor real growth when the figures bounce around from month to month or quarter to quarter because of seasonal factors, market cycles, or other temporary factors? Enter the Year Over Year (YOY) measurement. This powerful financial comparison shows a line… Continue reading Year over Year (YOY) in Finance: What Does it Mean And How is it Used?
Financial analysis is more akin to carrying out investigations where contexts and scenarios equally matter. You need to compare several disparities, decipher trends and patterns, and bring out the rich insights hidden behind the numbers on the surface. But it is not uncommon even for the most seasoned analysts to commit a few common financial… Continue reading Top 5 Pitfalls to Dodge When Conducting a Financial Analysis