Arjun Arora

🌟 **Optimize Your Month-End Close Process!** 🌟 Looking for a step-by-step guide to streamline your month-end close? "How to Perform a Month End Close" provides an in-depth breakdown, helping you navigate everything from transaction classification to bank reconciliation and adjusting journal entries. 📊📚 ✨ **What’s Inside:** 1. Practical tips for efficient transaction classification. 2. Essential steps for accurate bank reconciliations. 3. A guide to managing adjusting journal entries effectively. 4. **BONUS:** A FREE Chart of Accounts Template to get you started! 🎁 Whether you're an accountant or managing your own finances, this guide is designed to enhance your efficiency and accuracy in financial reporting. #Accounting #Finance #MonthEndClose #FinancialTips #Bookkeeping #FinancialPlanning

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🌟 Steps to Becoming a Qualified Accountant Benefits of a Career in Finance 🌟 If you're considering a career in accounting or finance, you're on the path to a profession that combines analytical skills, strategic thinking, and impactful decision-making. Here’s a quick guide on how to become a qualified accountant and why a career in finance might be the perfect choice for you! 📈 Steps to Becoming a Qualified Accountant: Obtain a Relevant Degree 🎓 Start with a bachelor's degree in accounting, finance, or a related field. This foundation provides essential knowledge of accounting principles, financial reporting, and auditing. Gain Practical Experience 🏢 Many roles require a few years of relevant experience. Internships, entry-level jobs, or apprenticeships in accounting firms or finance departments can help you gain hands-on experience. Choose a Professional Qualification 📑 Popular options include ACCA (Association of Chartered Certified Accountants), CPA (Certified Public Accountant), CIMA (Chartered Institute of Management Accountants), or ACA (Associate Chartered Accountant). Each qualification has its unique focus, whether it's public accounting, management accounting, or corporate finance. Pass the Exams 📝 Professional qualifications often require passing multiple rigorous exams. Be prepared to dedicate time and effort to study! Meet Continuing Professional Development (CPD) Requirements 🔄 To maintain your qualified status, you must complete CPD activities annually, ensuring your skills and knowledge remain up to date. 💼 Benefits of Working in Finance: High Demand and Job Security 🔒: Financial professionals are always in demand across industries, providing excellent job security. Lucrative Salary Potential 💰: Finance roles often come with attractive compensation packages, including bonuses and other perks. Diverse Career Opportunities 🌍: From financial analysis and management accounting to audit and tax, there are multiple pathways to explore. Impactful Decision-Making 📊: Finance professionals play a crucial role in strategic decision-making, helping businesses grow and succeed. Continuous Learning and Growth 🚀: The finance industry constantly evolves, offering endless learning and professional growth opportunities. If you're passionate about numbers, problem-solving, and making a tangible impact, a career in accounting and finance could be your calling! 💼📚 #Accounting #FinanceCareer #ProfessionalDevelopment #CareerGrowth #FinanceJobs #LinkedInTips

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GAAP vs. Non-GAAP Explained Simply GAAP stands for "Generally Accepted Accounting Principles." It's the standard accounting rules and procedures used by U.S. companies. All publically traded companies in the U.S. MUST use GAAP accounting when reporting their financial statements. Forcing all U.S. companies to use GAAP accounting has several benefits: → All reports are standardized → Financial reports are auditable → Financial reports are comparable to each other However, GAAP accounting also has some drawbacks: → One-off charges must be included → Stock-based compensation must be expensed → Paper gains / losses on investments must be included A side effect of GAAP's rigid rules is that profits often look worse. This is especially true for companies that pay lots of stock-based compensation. This is why many U.S. companies also choose to report "Non-GAAP" financial statements as well. Companies have much more flexibility in how they report financial statements by declaring the numbers are "Non-GAAP." While Non-GAAP accounting is NOT standardized, here are a few common traits: → One-off charges are usually EXCLUDED → Stock-based compensation is usually NOT expensed → Paper gains / losses on investments are usually EXCLUDED Non-GAAP accounting usually makes a company's profits look BETTER, which is why lots of management teams emphasize their Non-GAAP numbers with investors. (This is particularly true with companies that pay a lot of stock-based compensation, such as technology companies.) Side note: EBITDA -- which stands for Earnings Before Interest, Taxes, Depreciation, and Amortization -- is a Non-GAAP measure of profits since it excludes Depreciation and Amortization. So, which is better for investors? Personally, I always look at both whenever possible, but I'm OK with using Non-GAAP accounting so long as I trust the management team. And, if I don't trust the management team, I wouldn't invest in the first place. What do you think? Which is better to look at? Let me know below! Follow me Brian Stoffel for more content like this *** P.S. Want to master the basics of accounting (for free)? 📕 Grab our FREE accounting infographic ebook: → https://lnkd.in/geciS9nM If you found this post useful, please repost ♻️ to share with your audience.

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Financial Statements Green Flags INCOME STATEMENT 📜 →Accelerating Revenue Growth →Gross Margin Expansion →Operating Expenses Growing Slower Than Revenue →Operating Margin Expansion →Interest Income Exceeds Interest Expense →Pre-Tax Margin Expansion →Income Tax Rate Near 21% →Net Income Grows Faster Than Revenue →Shares Outstanding Declines →Earnings Per Share Consistently Grows BALANCE SHEET 📜 →More Cash Than Debt →No Accounts Receivables →No Inventory →Goodwill Less Than 10% of Total Assets →Current Liabilities Less Than Cash →No Short-Term or Long Term Debt →Deferred Revenue →No Preferred Stock →Retained Earnings Positive & Growing →Treasury Stock CASH FLOW STATEMENT 📜 →Net Income Positive & Growing →Stock-Based Compensation Less Than 10% of Net Income →Operating Cash Flow Higher Than Net Income →Capital Expenditures Less Than 10% of Net Income →Free Cash Flow Higher Than Net Income →Stock Repurchase →Dividends Paid →Cash Balance Increase What "green flags" do you look for in financial statements? Let me know below! Follow me Brian Stoffel for more content like this *** P.S. Want to master the basics of accounting (for free)? 📕 Grab our FREE accounting infographic ebook: → https://lnkd.in/geciS9nM If you found this post useful, please repost ♻️ to share with your audience.

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What is Working Capital? Here's a simple way to understand this confusing finance term. Working capital -- aka Net Working Capital -- is the difference between a company's current assets (expected to be used/consumed/converted into cash <1 year) and current liabilities (debts that are expected to be paid off in <1 year). Why is working capital important? Working Capital is a quick way to assess a company's liquidity, which is its ability to meet its short-term obligations. It serves as an indicator of a company's financial health. If working capital is positive, it indicates that a company has sufficient resources to cover its short-term financial needs. If working capital is negative, it indicates that a company may face financial difficulties. There are three ways to calculate working capital: THE SIMPLE METHOD Current Assets - Current Liabilities This is the most common method and easiest to calculate. THE NARROW METHOD (Current Assets - Cash) - (Current Liabilities - Debt) This method excludes cash & debt, which can be useful for comparing companies with different capital structures. THE SPECIFIC METHOD: Accounts Receivable Inventory - Accounts Payable: This method focuses on the cash conversion cycle of a business, which is the time it takes to convert inventory into cash. Was this helpful? Let me know in the comments section below! Follow me Brian Stoffel for more content like this *** P.S. Want to master the basics of accounting (for free)? 📕 Grab our FREE accounting infographic ebook: → https://lnkd.in/geciS9nM If you found this post useful, please repost ♻️ to share with your audience.

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Are you guilty of making this FP&A mistake? This mistake is "Settling for good enough" FP&A isn't about good enough - It is challenging the norm - It is driving results - It is the backbone of decision making If you want to be a leader in FP&A you need to be above ordinary. You need to display signs of greatness. Greatness is all about - Process refinement - Better data - Predictive insights Here, in our FP&A circuit, we say 'Mediocrity is the enemy of progress' - Don't settle for good enough - Don't settle for mediocrity - Aim for greatness. Be a holistic finance leader. #Greatness #Finance

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I’ve asked this simple question to countless FP&A candidates: “How do you analyze financial statements?” The responses often surprise me—not because of what they say, but because of what’s missing: a clear, structured thought process. Let’s face it: financial statements can be intimidating, with hundreds of lines of data demanding your attention. But finance doesn’t have to be complicated. In fact, it shouldn’t be. Here’s how I break it down into a simple, five-step framework that any finance professional can use to cut through the noise: 1 - Profitability and Drivers: Start by understanding where the company is making (or losing) money and why. 2 - Working Capital & Liquidity: Dive into the company’s ability to meet short-term obligations—cash flow is king. 3 - Debt Service Capacity: Assess whether the business can comfortably cover its debt payments, both now and in the future. 4 - Financial Structure: Look at the balance sheet—how is the company financing its operations, and what’s the risk? 5 - Refinancing Capacity: Consider the company’s ability to refinance or raise capital as needed. Think of this as checking the vital signs of a business—each step guiding you toward where to dig deeper. The key? Don’t let the data overwhelm you. Break it down, prioritize, and tackle one piece at a time. Just like a good doctor, focus on the critical indicators that matter most. Next time you're staring down a mountain of numbers, remember: simplify, structure, and execute. #Finance101 #FPandA #FinancialAnalysis #CorporateBanking #PrivateEquity #DataStrategy #InvestmentBanking #BusinessFinance #FinancialPlanning

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