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ACCOUNT RECEIVABLES vs. ACCOUNT PAYABLESWhat's the Difference?๐ฐ Accounts Receivable: Money owed to us by customers.Asset on the balance sheet.๐ณ Accounts Payable: Money we owe to suppliers.Liability on the balance sheet.โณ Accounts Receivable Metrics: Shows how quickly customers pay us.โฐ Accounts Payable Metrics: Reflects how promptly we pay our suppliers.๐ Importance of Accounts Receivable: Cash flow management & customer relationships.๐ก Importance of Accounts Payable: Vendor relations & working capital analysis.๐ Monitoring both ratios is essential for financial health and operational efficiency. ๐ ๐ ๐ ๐๐ถ๐ธ๐ฒ, ๐ฆ๐ต๐ฎ๐ฟ๐ฒ ๐ฎ๐ป๐ฑ ๐๐ผ๐บ๐บ๐ฒ๐ป๐ ๐๐ผ ๐๐ต๐ถ๐ ๐ฝ๐ผ๐๐ ๐ฐ๐ฎ๐ป ๐ฟ๐ฒ๐ฎ๐ฐ๐ต ๐ฝ๐ฟ๐ผ๐ณ๐ฒ๐๐๐ถ๐ผ๐ป๐ฎ๐น๐ ๐๐ต๐ผ ๐๐ฎ๐ป๐ ๐๐ผ ๐น๐ฒ๐ฎ๐ฟ๐ป ๐บ๐ผ๐ฟ๐ฒ ๐ฎ๐ฏ๐ผ๐๐ ๐ฝ๐ฟ๐ผ๐ท๐ฒ๐ฐ๐๐ถ๐ผ๐ป๐ ๐ผ๐ณ ๐ฟ๐ฒ๐๐ฒ๐ป๐๐ฒ๐._________________________________I am Bojan Radojicic Senior Partner in finance & tax international firm.โ ๐๐ผ๐น๐น๐ผ๐ ๐บ๐ฒ for more finance, accounting, reporting, M&A, IFRS and valuation ๐๐ฅ๐๐ ๐ฟ๐ฒ๐๐ผ๐๐ฟ๐ฐ๐ฒ๐.#Finance101 #BusinessTips #AccountsReceivable #AccountsPayable
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Bojan Radojicic
Finance Modeling Coach. Helping Finance Pros Make More Money with Impactful Finance Models & Trainings.
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Download my FREE Resources ๐ https://robojan.gumroad.com/
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Gregorius Rahadian
Tax & Accounting Experience
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Thanks for your post as a reminder of AP and AR importance. Based on my experience, both are related to each other.It is important to collect money from customers as soon as possible in order to pay goods/services from vendors in timeBut the 'art' of collecting money from customers is about negotiation, especially if a customer admit they are in financial difficulties. How to keep customers pay on time but not looked very pushy to them.Negotiation isn't taught in formal education and needs many years to master it.
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1st Commercial Credit
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As simple as this may be to many of us, after reviewing many applicants the business owners still donโt understand the importance of posting their payments to a/r and post the invoices from vendors asap to keep the balance sheet current. It is worthless reports to see a balance sheet from two or three months ago. I it doesnโt help the underwriting department for credit line increases or the owner trying to get a grasp of their financial standing. In summary, an AP and AR report is worthless if the business is not posting daily!
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Amalina Amira Mell
Never give up on your life
7mo
Managing supplier to pay on time with boss authorised to release payment is very hard based on my work experience as account payable. I'm also an experienced with account receivable which important also to make sure received more revenue and can pay to our supplier with that money if not ,company will be bankrupt..for me..both account receivable and account payable are important role actually.#justshare information.
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Muhammad Furqan CPA - Candidate, CMA, APFA
Train to Earn $ not to Pass Papers | US Tax Trainer | US Tax Consultant | Offshore US Tax Preparer & Reviewer (1040, 1120, 1120S, 1065, 5472) | Bookkeeping | Drake, Lacerte, Proconnect
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your post is an example that presentation is very important, whatever you post are all in Financial accounting books and not new for finance professionals like me but still I have to hit "LIKE" because of your attractive and lovely presentation and summertime the topic on one page. its really creative.
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Elizah Yape
Accountant
7mo
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AP/AP are operating accounts,both needs master skills on how quick you can collect and pay. The results affect other expense accounts like payment of bills.
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Eye for Cash
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Thank you for clarifying.
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Gary Jain ๐
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Managing cash flow & vendor relations is crucial. To optimize financial health and efficiency, monitor both ratios closely. Great insights Bojan Radojicic!
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Isabelle Beaugiraud
Group consolidation and reporting manager Expert Comptable, normes internationales en charge de la consolidation et des reportings de gestion ADECCO GROUP
7mo
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Interesting overview with key hints
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DASSIN TUMBI KASHALA
SENIOR TAX ACCOUNTANT/ASIA INVESTED GROUP
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Hi Bojan ,i need your email to stay in touch with you
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Bojan Radojicic
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Imagine you own a delicious bakery, "Brenda's Bread Basket." Business is good, but you want to know: 1. ๐๐ข๐ฏ ๐ ๐ข๐ง๐ง๐ฐ๐ณ๐ฅ ๐ต๐ฐ ๐ฆ๐น๐ฑ๐ข๐ฏ๐ฅ? 2. ๐๐ช๐ญ๐ญ ๐ ๐ฉ๐ข๐ท๐ฆ ๐ฆ๐ฏ๐ฐ๐ถ๐จ๐ฉ ๐ค๐ข๐ด๐ฉ ๐ฐ๐ฏ ๐ฉ๐ข๐ฏ๐ฅ ๐ต๐ฐ ๐ฃ๐ถ๐บ ๐ฏ๐ฆ๐ธ ๐ฆ๐ฒ๐ถ๐ช๐ฑ๐ฎ๐ฆ๐ฏ๐ต? 3. ๐๐ฉ๐ข๐ต ๐ธ๐ช๐ญ๐ญ ๐ฎ๐บ ๐ฑ๐ณ๐ฐ๐ง๐ช๐ต๐ด ๐ญ๐ฐ๐ฐ๐ฌ ๐ญ๐ช๐ฌ๐ฆ ๐ฏ๐ฆ๐น๐ต ๐บ๐ฆ๐ข๐ณ?๐๐ฒ๐ฟ๐ฒ'๐ ๐๐ต๐ฒ๐ฟ๐ฒ ๐๐ต๐ฒ ๐บ๐ฎ๐ด๐ถ๐ฐ ๐ผ๐ณ ๐ฏ ๐๐๐ฎ๐๐ฒ๐บ๐ฒ๐ป๐ ๐ฝ๐ฟ๐ผ๐ท๐ฒ๐ฐ๐๐ถ๐ผ๐ป๐ ๐ฐ๐ผ๐บ๐ฒ๐ ๐ถ๐ป! โก๏ธ Chapter 1:Your Bakery's Profit PotentialThis chapter forecasts how much money your bakery will bring in from selling bread, pastries, and coffee (revenue) and how much you'll spend on ingredients, rent, and staff (expenses). Will your projected revenue exceed your expenses, resulting in a profit and how much?๐๐ ๐ฎ๐บ๐ฝ๐น๐ฒ: ๐ ๐ฐ๐ถ ๐ฎ๐ช๐จ๐ฉ๐ต ๐ฑ๐ณ๐ฐ๐ซ๐ฆ๐ค๐ต ๐ข 10% ๐ช๐ฏ๐ค๐ณ๐ฆ๐ข๐ด๐ฆ ๐ช๐ฏ ๐ด๐ข๐ญ๐ฆ๐ด ๐ฏ๐ฆ๐น๐ต ๐บ๐ฆ๐ข๐ณ, ๐ญ๐ฆ๐ข๐ฅ๐ช๐ฏ๐จ ๐ต๐ฐ ๐ฉ๐ช๐จ๐ฉ๐ฆ๐ณ ๐ณ๐ฆ๐ท๐ฆ๐ฏ๐ถ๐ฆ. ๐๐ถ๐ต ๐ช๐ง ๐บ๐ฐ๐ถ ๐ข๐ญ๐ด๐ฐ ๐ฑ๐ญ๐ข๐ฏ ๐ต๐ฐ ๐ฉ๐ช๐ณ๐ฆ ๐ข๐ฏ ๐ฆ๐น๐ต๐ณ๐ข ๐ฃ๐ข๐ฌ๐ฆ๐ณ, ๐บ๐ฐ๐ถ๐ณ ๐ฆ๐น๐ฑ๐ฆ๐ฏ๐ด๐ฆ๐ด ๐ฎ๐ช๐จ๐ฉ๐ต ๐ณ๐ช๐ด๐ฆ ๐ต๐ฐ๐ฐ. ๐๐ฏ๐ข๐ญ๐บ๐ป๐ช๐ฏ๐จ ๐ต๐ฉ๐ช๐ด ๐ฉ๐ฆ๐ญ๐ฑ๐ด ๐บ๐ฐ๐ถ ๐ด๐ฆ๐ฆ ๐ช๐ง ๐ต๐ฉ๐ฆ ๐ฆ๐น๐ต๐ณ๐ข ๐ด๐ข๐ญ๐ฆ๐ด ๐ธ๐ช๐ญ๐ญ ๐ค๐ฐ๐ท๐ฆ๐ณ ๐ต๐ฉ๐ฆ ๐ข๐ฅ๐ฅ๐ฆ๐ฅ ๐ค๐ฐ๐ด๐ต.โก๏ธ Chapter 2:A Snapshot of Your Bakery's WealthThink of this as a picture of your bakery's finances at a specific future date. It shows what you'll own (assets) like ovens and flour, what you'll owe (liabilities) like rent payments, and how much money you'll have reinvested in the business (owner's equity).โก๏ธ Chapter 3:Your Bakery's Cash Flow Rhythm๐ ๐ฐ๐ถ ๐ฎ๐ช๐จ๐ฉ๐ต ๐ฑ๐ณ๐ฐ๐ซ๐ฆ๐ค๐ต ๐ด๐ต๐ณ๐ฐ๐ฏ๐จ ๐ค๐ข๐ด๐ฉ ๐ง๐ญ๐ฐ๐ธ ๐ง๐ณ๐ฐ๐ฎ ๐ด๐ข๐ญ๐ฆ๐ด, ๐ข๐ญ๐ญ๐ฐ๐ธ๐ช๐ฏ๐จ ๐บ๐ฐ๐ถ ๐ต๐ฐ ๐ช๐ฏ๐ท๐ฆ๐ด๐ต ๐ช๐ฏ ๐ต๐ฉ๐ข๐ต ๐ฏ๐ฆ๐ธ ๐ฐ๐ท๐ฆ๐ฏ (๐ฑ๐ฐ๐ด๐ช๐ต๐ช๐ท๐ฆ ๐ค๐ข๐ด๐ฉ ๐ง๐ญ๐ฐ๐ธ ๐ง๐ณ๐ฐ๐ฎ ๐ฐ๐ฑ๐ฆ๐ณ๐ข๐ต๐ช๐ฐ๐ฏ๐ด). ๐๐ฉ๐ช๐ด ๐ฉ๐ฆ๐ญ๐ฑ๐ด ๐บ๐ฐ๐ถ ๐ด๐ฆ๐ฆ ๐ช๐ง ๐บ๐ฐ๐ถ ๐ค๐ข๐ฏ ๐ณ๐ฆ๐ข๐ญ๐ช๐ด๐ต๐ช๐ค๐ข๐ญ๐ญ๐บ ๐ข๐ง๐ง๐ฐ๐ณ๐ฅ ๐ต๐ฉ๐ฆ ๐ฑ๐ถ๐ณ๐ค๐ฉ๐ข๐ด๐ฆ ๐ธ๐ช๐ต๐ฉ๐ฐ๐ถ๐ต ๐ฏ๐ฆ๐ฆ๐ฅ๐ช๐ฏ๐จ ๐ข ๐ญ๐ฐ๐ข๐ฏ.~~~~~~~~By reading these 3 financial "chapters" together, you can gain a powerful understanding of your bakery's :๐ฝ๐ฟ๐ผ๐ท๐ฒ๐ฐ๐๐ฒ๐ฑ ๐ณ๐ถ๐ป๐ฎ๐ป๐ฐ๐ถ๐ฎ๐น ๐ต๐ฒ๐ฎ๐น๐๐ต. This empowers you to make informed decisions for a sweeter future!~~~~~~~~๐Build your model โ Ensure sustainable growth โ Improve your income. Start with these lessons:https://lnkd.in/dcrCTxBz๐ช๐ต๐ฎ๐ ๐ถ๐ ๐ถ๐ป?๐ 35 Lessons ๐ 6 Hours of video course ๐ 10+ Languages subtitle๐ 50+ Editable Excel modeling sheets๐ 330 pages of PDF finance modeling instructions ๐ 30+ Pieces of actionable visuals and handbookshttps://lnkd.in/dcrCTxBz
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Bojan Radojicic
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Why inventory planning at each level is important:๐ฅ๐ฎ๐ ๐ ๐ฎ๐๐ฒ๐ฟ๐ถ๐ฎ๐น๐โข Prevents production delaysโข Avoids overstocking.โข Helps keep the right amount on hand.๐ช๐ผ๐ฟ๐ธ-๐๐ป-๐ฃ๐ฟ๐ผ๐ด๐ฟ๐ฒ๐๐ (๐ช๐๐ฃ)โข Identifies bottlenecks.โข Helps to streamline the production process and reduce waste.๐๐ถ๐ป๐ถ๐๐ต๐ฒ๐ฑ ๐๐ผ๐ผ๐ฑ๐โข Meets customer demand.โข Prevents stockouts.๐ง๐ต๐ถ๐ ๐ถ๐ ๐๐๐ฒ๐ฝ ๐ฏ๐ ๐๐๐ฒ๐ฝ ๐ด๐๐ถ๐ฑ๐ฒ:โ Split inventories to 3 levels: Raw materials, WIP and Finished Goodsโ Cost of material is associated with Raw material planning, COGS is associated with WIP and FG planningโ Input historical figures of cost of material and COGS and inventoriesโ Calculate days on hand for each type of inventoriesโ Input forecast of cost for material and COGSโ Make best estimate for each type of DOHs for next periodโ Calculate inventories level based on formulas~~~~~~~~As part of working capital inventory planning is only one of the topics in my ๐๐ผ๐ฟ๐ฝ๐ผ๐ฟ๐ฎ๐๐ฒ ๐๐ถ๐ป๐ฎ๐ป๐ฐ๐ฒ ๐ ๐ผ๐ฑ๐ฒ๐น๐ถ๐ป๐ด ๐ฃ๐ฎ๐ฐ๐ธ๐ฎ๐ด๐ฒ.๐๐ฒ๐ฎ๐ฟ๐ป ๐บ๐ผ๐ฟ๐ฒ ๐ฎ๐ป๐ฑ ๐ฐ๐ต๐ฒ๐ฐ๐ธ ๐๐ต๐ฒ ๐ผ๐๐ต๐ฒ๐ฟ ๐น๐ฒ๐๐๐ผ๐ป๐.๐ https://lnkd.in/eN3Y_bzUUse Women's Day Special Offer -60% OFF to my Masterclass! The offer ends at Sunday EOD
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Bojan Radojicic
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Want more cash flow?This is a pre-lesson and good foundation for the magical formula of cash flow increase.Let's forecast NWC~~~~~~~๐๐ป๐ฝ๐๐๐ ๐ฎ๐ป๐ฑ ๐ฎ๐๐๐ฒ๐๐๐บ๐ฒ๐ป๐:Sales - historical dataSales - forecastCogs (or inventory turnover) - historical dataCogs - forecastDays sales outstanding - historical dataDays sales outstanding- forecastDays inventory outstanding - historical dataDays inventory outstanding- forecastDays payable outstanding - historical dataDays payable outstanding- forecast~~~~~~๐๐ผ๐ฟ๐ฒ๐ฐ๐ฎ๐๐:Apply a formula for calculation of:Account receivables (AR)Inventory (I)Account payables (AP)~~~~~~๐๐บ๐ฝ๐ฎ๐ฐ๐ ๐ผ๐ณ ๐ณ๐๐๐๐ฟ๐ฒ ๐ฐ๐ฎ๐๐ต ๐ณ๐น๐ผ๐AR increase = CF negative impact (decrease)I Increase = CF negative impact (decrease)AP increase = CF positive impact (increase)~~~~~~๐ Use my ๐๐ผ๐ฟ๐ฝ๐ผ๐ฟ๐ฎ๐๐ฒ ๐๐ถ๐ป๐ฎ๐ป๐ฐ๐ฒ ๐ ๐ผ๐ฑ๐ฒ๐น๐ถ๐ป๐ด ๐ฃ๐ฎ๐ฐ๐ธ๐ฎ๐ด๐ฒ and start improving your cash flows and financial health today ๐https://lnkd.in/dtcNgp47
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Bojan Radojicic
Finance Modeling Coach. Helping Finance Pros Make More Money with Impactful Finance Models & Trainings.
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Top excel functions for financial modelers.But, remember!!๐๐ ๐ฐ๐ฒ๐น ๐๐ฆ ๐ก๐ข๐ง ๐ณ๐ถ๐ป๐ฎ๐ป๐ฐ๐ฒ ๐บ๐ผ๐ฑ๐ฒ๐น๐ถ๐ป๐ด. That is just a tool that can help us transfer our strategic thoughts into sheets. And sometimes it can help a lot. When it come to the excel functions, this is my choice:IF FV PV IRR NPVPMTSUMRATE XNPVSUMIF STDEV MATCH VLOOKUPCOUNTIF IFERRORAVERAGECUMIPMT EOMONTH CUMPRINC INDEX & MATCH~~~~~~~ ๐ If you are readyto transform your career with finance modeling skills start with these 35 lessons and 50+ modeling spreadsheets: ๐ช๐ต๐ฎ๐ ๐ถ๐ ๐ถ๐ป?๐ 35 Lessons ๐ 6 Hours of video course ๐ 10+ Languages subtitle๐ 50+ Editable Excel modeling sheets๐ 330 pages of PDF finance modeling instructions ๐ 30+ Pieces of actionable visuals and handbookshttps://lnkd.in/daWyvX6r๐ฃ๐ฟ๐ถ๐ฐ๐ฒ? Likebusiness lunch for three.
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Bojan Radojicic
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Building a three-statement model that just won't reconcile? You're not alone. But the solution might be closer than you think. ๐จ๐ป๐ฑ๐ฒ๐ฟ๐๐๐ฎ๐ป๐ฑ๐ถ๐ป๐ด ๐ฎ๐ฐ๐ฐ๐ผ๐๐ป๐๐ถ๐ป๐ด ๐ฝ๐ฟ๐ถ๐ป๐ฐ๐ถ๐ฝ๐น๐ฒ๐ ๐ถ๐ ๐๐ต๐ฒ ๐บ๐ถ๐๐๐ถ๐ป๐ด ๐ฝ๐ถ๐ฒ๐ฐ๐ฒ ๐๐ผ ๐๐ป๐น๐ผ๐ฐ๐ธ๐ถ๐ป๐ด ๐ฟ๐ผ๐ฏ๐๐๐ ๐ณ๐ถ๐ป๐ฎ๐ป๐ฐ๐ถ๐ฎ๐น ๐บ๐ผ๐ฑ๐ฒ๐น๐!Financial statements aren't isolated entities. They work together like a well-oiled machine. Achange in revenue (income statement) impacts your cash flow (cash flow statement) and asset levels (balance sheet). Accounting knowledge equips you to build these crucial connections within your model, ensuring it reflects the true financial picture.โก๏ธ ๐๐ฒ๐ฟ๐ฒ'๐ ๐ต๐ผ๐ ๐ฎ๐ฐ๐ฐ๐ผ๐๐ป๐๐ถ๐ป๐ด ๐ธ๐ป๐ผ๐๐น๐ฒ๐ฑ๐ด๐ฒ ๐ฒ๐บ๐ฝ๐ผ๐๐ฒ๐ฟ๐ ๐๐ผ๐๐ฟ ๐ณ๐ถ๐ป๐ฎ๐ป๐ฐ๐ถ๐ฎ๐น ๐บ๐ผ๐ฑ๐ฒ๐น๐ถ๐ป๐ด:๐๐ผ๐ป๐ป๐ฒ๐ฐ๐๐ ๐๐ต๐ฒ ๐๐ผ๐๐: You'll understand how seemingly separate transactions ripple through all three statements. For example, increased sales lead to higher accounts receivable and ultimately impact your cash flow.๐ ๐ฎ๐ถ๐ป๐๐ฎ๐ถ๐ป๐ ๐๐ฐ๐ฐ๐๐ฟ๐ฎ๐ฐ๐: Accounting principles guide you in setting up formulas and relationships, preventing nonsensical outputs and ensuring a model that makes sense.~~~~~~~~~~~๐Ready to take your financial modeling skills to the next level? Start here: ๐ https://lnkd.in/dGZmHGfxP.S.What's your biggest challenge when building financial models? Share your thoughts in the comments!
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Bojan Radojicic
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Don't miss these very essential calculations and concepts. This Cheat Sheet show the impactful financial model and how to learn essentials of corporate finance. Learn crucial finance principles given through real example and calculations. ๐ ๐๐ฒ๐น๐ฝ ๐บ๐ฒ ๐๐ต๐ฎ๐ฟ๐ฒ ๐๐ต๐ถ๐ ๐ฐ๐ผ๐ฟ๐ฝ๐ผ๐ฟ๐ฎ๐๐ฒ ๐ณ๐ถ๐ป๐ฎ๐ป๐ฐ๐ฒ ๐ถ๐ป๐๐ถ๐ด๐ต๐๐ ๐๐ถ๐๐ต ๐๐ต๐ถ๐ ๐๐ฅ๐๐ ๐๐ต๐ฒ๐ฎ๐ ๐ฆ๐ต๐ฒ๐ฒ๐.๐ ๐ ๐ ๐๐ถ๐ธ๐ฒ, ๐ฆ๐ต๐ฎ๐ฟ๐ฒ ๐ฎ๐ป๐ฑ ๐๐ผ๐บ๐บ๐ฒ๐ป๐ ๐๐ผ ๐๐ต๐ถ๐ ๐ฝ๐ผ๐๐ ๐ฐ๐ฎ๐ป ๐ฟ๐ฒ๐ฎ๐ฐ๐ต ๐ฝ๐ฟ๐ผ๐ณ๐ฒ๐๐๐ถ๐ผ๐ป๐ฎ๐น๐ ๐๐ต๐ผ ๐๐ฎ๐ป๐ ๐๐ผ ๐น๐ฒ๐ฎ๐ฟ๐ป ๐บ๐ผ๐ฟ๐ฒ ๐ฎ๐ฏ๐ผ๐๐ ๐ฐ๐ผ๐ฟ๐ฝ๐ผ๐ฟ๐ฎ๐๐ฒ ๐ณ๐ถ๐ป๐ฎ๐ป๐ฐ๐ฒ, ๐ณ๐ถ๐ป๐ฎ๐ป๐ฐ๐ถ๐ฎ๐น ๐๐๐ฎ๐๐ฒ๐บ๐ฒ๐ป๐๐, ๐ฎ๐ป๐ฎ๐น๐๐๐ถ๐ ๐ฎ๐ป๐ฑ ๐ฟ๐ฒ๐ฝ๐ผ๐ฟ๐๐ถ๐ป๐ด.๐๐ผ ๐๐ผ๐ ๐น๐ถ๐ธ๐ฒ ๐๐ต๐ฒ ๐ฑ๐ผ๐๐ป๐น๐ผ๐ฎ๐ฑ๐ฎ๐ฏ๐น๐ฒ ๐ฃ๐๐ ๐๐ฒ๐ฟ๐๐ถ๐ผ๐ป?๐ ๐๐ผ๐บ๐บ๐ฒ๐ป๐ ๐๐ต๐ถ๐ ๐ฝ๐ผ๐๐ ๐ผ๐ฟ ๐๐ ๐บ๐ฒ๐ ๐๐ถ๐น๐น ๐๐ต๐ฎ๐ฟ๐ฒ ๐ฑ๐ผ๐๐ป๐น๐ผ๐ฎ๐ฑ ๐น๐ถ๐ป๐ธ.๐งฟ ๐ช๐ต๐ฎ๐ ๐ถ๐ ๐ถ๐ป๐น๐ฐ๐๐ฑ๐ฒ๐ฑโถ๏ธ Get started withFinancial statement presentationโข Balance sheetโข Profit and loss accountโข Cash flow statement (indirect method)โถ๏ธ Historical ratio analysisโข Liquidity ratiosโข Profitability ratiosโข Activity / efficiency ratiosโข Ratios of financial structureโถ๏ธ Revenue forecastโถ๏ธ COGS forecastโถ๏ธ Fixed and variable overhead cost forecastโถ๏ธ Net working capital forecastโข DSO calculationโข DPO calculationโข DIO calculationโข Account receivable forecastโข Account payable forecastโข Inventories forecastโถ๏ธ CAPEX forecastโข Forecast of tangible and intangible assetsโข Forecast of depreciation and amortizationโถ๏ธ Financial liabilities forecastโถ๏ธ Balance sheet forecastโถ๏ธ P&L forecastโถ๏ธ Cash flow statement forecastโถ๏ธ Breakeven forecastโถ๏ธ Vertical P&L analysisโถ๏ธ Horizontal P&L analysisโถ๏ธ Weighted average cost of capital (WACC) forecastโถ๏ธ Valuation based on discounted cash flowsI missed something? Let me what to add and I will approach this in new version.--------------------------๐ Life in finance is busy. Deadlines, tons of spreadsheets, management pressure lead to chronic stress. I specialize in helping finance pros avoid chaos and focus on what matters. Start with building sustainable financial model:๐https://lnkd.in/dkA2qcKN
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Bojan Radojicic
Finance Modeling Coach. Helping Finance Pros Make More Money with Impactful Finance Models & Trainings.
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A dollar today is worth more than a dollar tomorrow. This concept, known as the time value of money (TVM), is crucial for making informed financial decisions.Why is TVM important?โก๏ธ๐๐ข๐ณ๐ฏ๐ช๐ฏ๐จ ๐๐ฐ๐ต๐ฆ๐ฏ๐ต๐ช๐ข๐ญMoney can grow through investments, generating interest or returns over time. A dollar invested today can be worth more in the future due to this growth potential.โก๏ธ๐๐ฏ๐ง๐ญ๐ข๐ต๐ช๐ฐ๐ฏInflation erodes purchasing power. A dollar received later buys less than a dollar received today due to rising prices.โก๏ธ๐๐ฑ๐ฑ๐ฐ๐ณ๐ต๐ถ๐ฏ๐ช๐ต๐บ ๐๐ฐ๐ด๐ตEvery financial decision involves an opportunity cost. Choosing one option means sacrificing the potential benefits of another. TVM helps compare options by considering the timing of cash flows.๐๐ถ๐ป๐ฎ๐ป๐ฐ๐ถ๐ฎ๐น ๐ฝ๐ฟ๐ผ๐ณ๐ฒ๐๐๐ถ๐ผ๐ป๐ฎ๐น๐ ๐น๐ฒ๐๐ฒ๐ฟ๐ฎ๐ด๐ฒ ๐ง๐ฉ๐ ๐ถ๐ป ๐๐ฎ๐ฟ๐ถ๐ผ๐๐ ๐๐ฎ๐๐:๐๐ป๐๐ฒ๐๐๐บ๐ฒ๐ป๐ ๐๐ป๐ฎ๐น๐๐๐ถ๐TVM helps assess the true value of future cash flows from an investment, allowing for informed decisions about which opportunities to pursue.๐๐ผ๐ฎ๐ป ๐๐๐ฎ๐น๐๐ฎ๐๐ถ๐ผ๐ปWhen evaluating loans, TVM helps determine the true cost of borrowing, considering interest repayments and the time value of money.๐ฅ๐ฒ๐๐ถ๐ฟ๐ฒ๐บ๐ฒ๐ป๐ ๐ฃ๐น๐ฎ๐ป๐ป๐ถ๐ป๐ดTVM is crucial for calculating future retirement needs and setting appropriate savings goals to ensure financial security.~~~~~~~~~~๐ PS. "You can't predict the future, but you can create it" P. Drucker. Use my ๐๐ผ๐ฟ๐ฝ๐ผ๐ฟ๐ฎ๐๐ฒ ๐๐ถ๐ป๐ฎ๐ป๐ฐ๐ฒ ๐ ๐ผ๐ฑ๐ฒ๐น๐ถ๐ป๐ด ๐ฃ๐ฎ๐ฐ๐ธ๐ฎ๐ด๐ฒ and start creating your financial health today: ๐https://lnkd.in/dAmbWbTD
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Bojan Radojicic
Finance Modeling Coach. Helping Finance Pros Make More Money with Impactful Finance Models & Trainings.
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Finance modeling E-bookDownload here (no costs) - https://lnkd.in/dEyi2DMb๐ Book content ๐BASICS01 Who do what with finance model02 Steps to create financial model 03 Modeling Best practices04 Input and drivers05 Do and donโts in modeling06 Scenario analysis types07 factors to forecast sales08 Spreadsheets in the model09 Modeling checklist10 Capital budgeting11 Finance model vs business model12 Old ways vs New ways in modeling13 Finance model vs budget14 Budgeting vs rolling forecast15 14 Finance modelling handbookMODELS & SCHEDULES01 Customer acquisition model02 3 Statements model03 Types of financial models04 Net working capital05 Capex schedules06 LBO model07 Scenario manager08 Strat up finance model~~~~~~~~~~๐If you like to check my Modeling Course, as well you can do it here:https://lnkd.in/daqFvxd9๐ 6 Hours of video course sessions ๐ 35 lessons divided in 5 modules๐ 50+ editabe finance modeling sheets๐ 330 pages of PDF
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