Raajeshwar CMA (USA)®, (FMVA) on LinkedIn: #accounting #excel #cashflow #kpis (2024)

Looking to mitigate financial risks in your business? Here are some valuable insights:1️⃣ Currency Fluctuations: Employ hedging strategies or diversify operations across markets.2️⃣ Commodity Price Volatility: Enter long-term contracts, secure supplies from multiple sources, or use financial instruments.3️⃣ Credit Risk: Conduct thorough credit assessments, implement strict credit policies, and establish effective collection procedures.Stay updated with market trends, economic indicators, and regulatory changes for proactive risk management. Share your thoughts on managing financial risks below! 💼💡📈#FinancialRiskManagement#CurrencyFluctuations#CommodityPriceVolatility#CreditRisk

5

15 Reasons Why Financial Modeling is Important💡 Financial modeling isn't just about numbers; it's the compass that guides businesses through their financial journeys. Discover why it's the driving force behind smarter investments, better planning, and sustainable success. 🚀💼 1️⃣ Strategic Planning: Financial modeling helps organizations plan future. 2️⃣ Risk Assessment: Through financial modeling, businesses can assess potential risks and uncertainties. 3️⃣ Capital Budgeting: Financial models aid in capital budgeting decisions, helping companies allocate resources efficiently to projects, investments, or acquisitions. 4️⃣ Valuation: Financial modeling is integral to the valuation of companies for mergers, acquisitions, and investment decisions. 5️⃣ Fundraising: When seeking funding from investors or lenders, financial models serve as a means to communicate the financial health and growth potential of a company. 6️⃣ Performance Analysis: Businesses use financial models to analyze their historical financial performance and compare it to their projections. 7️⃣ Resource Allocation: Financial models assist in optimizing resource allocation by allocating budgets to different departments or projects based on their financial impact and alignment with strategic goals. 8️⃣ Cost Control: They help in monitoring and controlling costs by providing insights into cost structures and cost drivers. 9️⃣ Scenario Planning: Financial models allow for scenario planning, which is crucial in uncertain economic environments. 🔟 Cash Flow Management: Financial models help in forecasting cash flows, ensuring that a company has enough liquidity to cover its obligations. 1️⃣1️⃣ Investor Communication: Publicly traded companies often use financial models to communicate their financial performance and growth prospects to shareholders, analysts, and the public. 1️⃣2️⃣ Decision-Making: Financial models provide a structured framework for making informed decisions. 1️⃣3️⃣ Compliance and Reporting: Financial models assist in ensuring compliance with these requirements. 1️⃣4️⃣ Performance Metrics: Financial models help in calculating and tracking key performance indicators (KPIs) such as return on investment (ROI), profitability ratios, and break-even points. 1️⃣5️⃣ Flexibility: Financial models can be adapted to various industries and sectors, making them a versatile tool for businesses of all types and sizes. Share this post with your peers and follow us for more educational content! 🌐 Let’s make smarter financial decisions together! 🌟#financialmodeling #financetips#CMA #fpna #careergrowth Financial Modeling World Cup

In the manufacturing industry, tracking key performance indicators (KPIs) is crucial for financial success. Here are the top 10 financial KPIs to monitor:1. Gross Profit Margin: Measure of profitability, indicating the percentage of revenue that exceeds the cost of goods sold.2. Operating Expense Ratio: Shows the percentage of revenue used for operating expenses, providing insight into efficiency.3. Inventory Turnover: Evaluates how quickly the company sells inventory, indicating efficiency and demand.4. Accounts Receivable Days: Measures the average number of days it takes to collect payment from customers, indicating cash flow management.5. Return on Assets (ROA): Measures how effectively the company generates profit from its assets.6. Earnings Before Interest and Taxes (EBIT): Reflects a company's operating profitability before the impact of debt and taxes.7. Return on Equity (ROE): Measures the rate of return on shareholders' investments in the company.8. Debt-to-Equity Ratio: Indicates the proportion of debt and equity financing used by the company, assessing financial risk.9. Cash Conversion Cycle: Measures the time it takes for a company to convert cash spent on raw materials into cash received from completed products.10. Return on Investment (ROI): Measures the profitability of an investment and helps assess the efficiency of capital allocation.Monitoring these financial KPIs can provide valuable insights for manufacturing companies to make informed decisions and drive financial success.Please feel free to add if I missed any KPIs.#finance #kpi #cma #carrers #manufacturing

1

The Ultimate Excel Handbook Second Edition (updated with the latest info) 📊-Financial Modeling World Cup.We have prepared all the necessary things you need to master Excel and perform like a Pro in the Microsoft Excel World Championship! 🏆1.Functionsi. Top 10 Functions - https://lnkd.in/ew47YCmSii. Text Splitting Functions - https://lnkd.in/eHdVT6MD2.Conditional Formatting - https://lnkd.in/g9aQ6EaX 3.Data Table - https://lnkd.in/eeAXRbri 4. Pivot Table - https://lnkd.in/eeAXRbri 5.Data Validation - https://lnkd.in/eeAXRbri 6.Group Data - https://lnkd.in/eeAXRbri 7.Power Query - https://lnkd.in/eeAXRbri 8.Excel Shortcuts - https://lnkd.in/ddxh_AU9 9.Getting Started with Python in Excel - https://lnkd.in/daibGtwQ 10.How ChatGPT Can Simplify Excel Workflow? - https://lnkd.in/e-yjhgJk 11.History of Microsoft Excel - https://lnkd.in/e2rWUvzb Microsoft Excel World Championship sign-up closes already on October 6!Get your ticket today: https://lnkd.in/dgeXK6JySave this post and share it with your friends & colleagues! 😉Your document has finished loading

🌍 Myth: Sustainable packaging is expensive and not cost-effective for businesses.📉 Fact: Sustainable packaging saves money in the long run.- By using less material, sustainable packaging minimizes costs.- Efficient designs lead to cost savings in transportation and storage.- Eco-conscious consumers are attracted to sustainable packaging, boosting sales and brand loyalty.- It also reduces waste, transportation, and storage expenses.🌱 Reasoning: Sustainable packaging is often seen as costly, but this is a misconception. Here's why it actually saves businesses money:✅ Reduced material usage: Sustainable packaging uses less material while maintaining product integrity, saving costs.✅ Efficiency and optimization: Sustainable packaging designs prioritize size, shape, and weight, leading to cost savings in transportation and storage.✅ Consumer attraction: Consumers prefer sustainably packaged products, leading to increased sales and brand loyalty.✅ Waste reduction: Sustainable packaging minimizes waste through recyclable or compostable materials, reducing waste disposal costs.🌱 In conclusion, sustainable packaging is both environmentally friendly and financially advantageous for businesses. Let's debunk the myth that it's expensive and embrace its benefits.#Sustainability#PackagingIndustry#CostOptimization#SustainableBusiness#WasteReduction

2

1 Comment

Ten Excel formulas all finance and accounting pro’s should learn by Anders Liu-Lindberg.Brought to you by the Financial Modeling World Cup.1. SUMIFSExample of use: sum up sales for a specific employee for a specific product2. IFERRORExample of use: change an error in a value in a data set to 0 (or anything else you’d like) for easier data summing3. XIRRExample of use: helps you calculate the Internal Rate of Return of an investment4. XNPVExample of use: helps you calculate the Net Present Value of an investment5. PMTExample of use: calculates the payment of loan assuming constant payments and interest rates6. SLOPEExample of use: calculate the Beta of a stock7. XLOOKUPExample of use: find any needed value for an employee using their ID number in a table of different employee data8. INDEX & MATCHExample of use: whereas XLOOKUP is one-dimensional this formula combination is two-dimensional and gives you even more powerful look up options9. EOMONTHExample of use: helps calculate maturity dates or due dates falling on the last day of a month10. SEQUENCEExample of use: can generate a sequence of numbers and is helpful when you need to generate a large sequenceWhich is your favorite formula and are there other formulas you’d add to the list?

2

10 Tips for Budgeting Season from Paul Barnhurst, The FPandA Guy1. Complete a high-level straw case and understand scenario/sensitivities before any meetings2. Management alignment upfront (targets, assumptions, timelines, etc.)3. Develop a high-level and detailed calendar and checklist (do this way ahead of time).4. Book a kick-off meeting to align on targets, assumptions, and calendar. 5. Frequent check-ins (leadership and teams). Daily if necessary.6. Highlight issues and gaps early (on all P&L lines with a solution mindset).7. Scenario Management - Build scenarios and sensitivity capabilities into the process. 8. Utilize technology and align on this early (planning tool, spreadsheet model, etc.).9. Start your presentations early (this will help you with the 'story' and reduce late nights).10. Stay calm as the process evolves (it never goes according to plan so plan for this and build in a buffer - time and $).

3