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Credits to Abdul Khaliq, follow him for more finance content. ------ Here's the original post: Financial vs Management Reporting Reporting is an integral part of finance and accounting catering to the needs of internal and external stakeholders. Financial reporting is essential to comply with accounting standards and regulatory requirements. Whereas, management reporting offers valuable insights into operations, strategic planning, and resource allocation. Which one do you think is more important? Here are the 10 Differences: ✅ Responsibility 🔸 Financial Controller is primarily responsible for ensuring accurate financial reporting according to accounting standards and regulations. 🔸Head of FPA& with various departments and managers across the organization, generate and utilize management reports. ✅ Focus 🔸Focuses on compliance with external reporting requirements, accurate financial statements, and proper disclosure. 🔸Concentrates on providing relevant and timely information to support internal decision-making, performance analysis, and strategic planning. ✅ Audience 🔸Primarily aimed at external stakeholders such as investors, creditors, regulators, and the general public. 🔸Targeted at internal management and decision-makers. ✅ Frequency 🔸Typically prepared quarterly and annually, following established accounting standards and regulations. 🔸Prepared monthly or even weekly to support ongoing operational and strategic decisions. ✅ Compliance 🔸Must adhere to specific accounting standards and legal regulations to ensure accuracy and consistency for external reporting. 🔸Driven by management’s requirements. Not bound by accounting standards, allowing greater flexibility in format and content. ✅ Analysis 🔸External stakeholders analyze financial reports to assess the company's financial health, profitability, liquidity, and overall performance. 🔸Internal stakeholders analyze management reports to monitor operational performance. ✅ Usage 🔸Used for making investment decisions, evaluating creditworthiness, and meeting regulatory requirements. 🔸Supports operational decisions, resource allocation, performance evaluations, and strategic planning within the organization. ✅ Scope 🔸Provides an overview of the organization's financial statements, including balance sheet, income statement, cash flow statement. 🔸Offers deeper detail, including operational metrics, non-financial KPIs, variance analysis. ✅ Flexibility 🔸Less flexible due to the need to adhere to established accounting standards. 🔸Highly customizable to address specific information needs and goals of internal decision-makers. ✅ Confidentiality 🔸Publicly accessible by external stakeholders, subject to regulatory disclosure requirements. 🔸Typically confidential and accessible only to authorized internal users.

A very impactful visual presentation of the various roles that one can pursue in Finance and Accounting. Good input for chartering your career plan, in case you belong to that domain. #Finance #Accounts #Accounting #FinanceandAccounts #FinancialAccounting

connection CFO with Accountant in tax matters would serve to better planning

this is how business should be run...

ACCOUNTING FUNCTIONS IN EXCEL FOR FINANCIAL ANALYSIS In Excel, there are several functions commonly used in accounting and financial analysis. These functions help in performing calculations such as summing up values, calculating interest, and more. Here are some key accounting functions in Excel: 1. SUM Function: Adds up numbers in a range. =SUM(range) 2. AVERAGE Function: Calculates the average of numbers in a range. =AVERAGE(range) 3. MIN Function: Returns the smallest number in a range. =MIN(range) 4. MAX Function: Returns the largest number in a range. =MAX(range) 5. IF Function: Checks whether a condition is met and returns one value if true and another if false =IF(condition, value_if_true, value_if_false) 6. COUNT Function: Counts the number of cells that contain numbers in a range. =COUNT(range) 7. COUNTIF Function: Counts the number of cells within a range that meet the given condition. =COUNTIF(range, criteria) 8. SUMIF Function: Adds the cells specified by a given condition or criteria. =SUMIF(range, criteria, [sum_range]) 9. SUMIFS Function: Adds the cells in a range that meet multiple criteria. =SUMIFS(sum_range, criteria_range1, criteria1, [criteria_range2, criteria2], ...)

To hit $1M annually, you need $83,000 in MRR. That's 55 bookkeeping clients at $1500 each per month. But if you can upsell these clients Controllership and FP&A analysis, you can charge $4K+ per client. Now, you only need 20 clients at $4K each per month. Use technology to automate the inputs on the accounting and bookkeeping sides as best you can. Then, add value on the FP&A side. It takes a lot of work and support to handle 55 clients with just bookkeeping services and no technology vs. 20 clients using a great tool and maybe a tiny team of 3 people. You can move faster and even exceed 7 figures if you make a consistent product of monthly deliverables of books + set of financial forecasts on 3 different tiers of pricing. You see, for most accounting firms, making $1 million a year seems out of their reach, but in reality, you can get there. P.S. Before founding Jirav, I spent 10 years working in finance as a controller, finance director, and CFO. I helped multiple businesses grow, from early startups to established corporations, and helped raise over $250 million in funding for clients across the globe.

You don't need a CFO to understand your eComm business. You don’t even need to play one on TV. You DO need to understand some basic financial concepts that drive your company, And have accurate books and a P&L (you don’t need a CFO for this, you need a bookkeeper…). After these basics are met, let a tool like Pentane do the complicated stuff. It’s true. Pentane simplifies the complex data inside your company and financial statements to show you how to use ad spend, revenue, and expenses in order to operate profitably, Tailored specifically to your company, situation, and profitability goals. So that you can make sense of what’s happening WITHOUT a PhD in accounting. Again, you still need a good bookkeeper/accountant to handle the day-to-day financial tasks. And if you’re a consumer product company/making a physical good, you need to be using accrual accounting (as opposed to cash-based accounting). But that’s pretty much it. We’ll take care of simplifying the complex so you can stop operating in the dark. (Trust me, it's a game-changer). Want to see if Pentane can help? Book a demo to see if you qualify for a free trial: https://lnkd.in/gWicKpqQ P.S. - Get some value? Follow me for daily posts.

Key Finance & Accounting Roles Explained Credits to Aleksandar Stojanović, MSc., follow him for more finance content. ------ Here's the original post: Key Finance & Accounting Roles Explained Embarking on a career in Finance & Accounting? You would like to know where you fit and what to learn. Here’s a step-by-step guide to critical roles and responsibilities: 🔘 CFO (Chief Financial Officer): For those who envision the financial big picture. 1. Strategic Planning: Cultivate a holistic view of financial growth. 2. Capital Structuring: Master the art of effective funding. 3. Risk Management: Grasp crucial techniques to safeguard assets. 4. Stakeholder Communication: Build bridges with investors and board members. 5. Forecasting: Harness the power of future financial insights. 🔘 Financial Analyst: Dive deep for those analytical minds. 6. Data Analysis: Extract significant patterns from financial data. 7. Budgeting & Planning: Understand the nuances of allocation. 8. Performance Metrics: Discover vital KPIs for business health. 9. Report Creation: Master the art of insightful reporting. 🔘 Internal Auditor: For the diligent and detail-oriented. 10. Risk Assessments: Spot vulnerabilities before they escalate. 11. Process Evaluations: Streamline operations for efficiency. 12. Compliance Checks: Ensure adherence to financial standards. 13. Recommendations: Provide insights for optimization. 🔘 Tax Specialist: Navigate the intricate maze of taxation. 14. Tax Strategy: Formulate effective tax-saving methods. 15. Compliance & Reporting: Adhere to the ever-evolving tax laws. 16. Audit Defense: Safeguard against potential tax inquiries. 17. Tax Forecasting: Predict future tax implications. 🔘 Accountant: The backbone of everyday financial health. 18. Record Keeping: Maintain pristine financial records. 19. Financial Statements: Generate periodic business health reports. 20. Reconciliation: Ensure accuracy in books. 21. Tax Preparation: Assist in timely and accurate tax filing. These roles encompass different aspects of Finance & Accounting, catering to various interests and skill sets. Explore these areas, identify your interests, and tailor your learning path accordingly. ------- Follow Business Infographics to learn from the best visuals.

Key Finance & Accounting Roles Explained Brilliant Share By: Aleksandar Stojanović, MSc. Original Post Below 👇 👇 👇 "Key Finance & Accounting Roles Explained Embarking on a career in Finance & Accounting? You would like to know where you fit and what to learn. Here’s a step-by-step guide to critical roles and responsibilities: 🔘 CFO (Chief Financial Officer): For those who envision the financial big picture. 1. Strategic Planning: Cultivate a holistic view of financial growth. 2. Capital Structuring: Master the art of effective funding. 3. Risk Management: Grasp crucial techniques to safeguard assets. 4. Stakeholder Communication: Build bridges with investors and board members. 5. Forecasting: Harness the power of future financial insights. 🔘 Financial Analyst: Dive deep for those analytical minds. 6. Data Analysis: Extract significant patterns from financial data. 7. Budgeting & Planning: Understand the nuances of allocation. 8. Performance Metrics: Discover vital KPIs for business health. 9. Report Creation: Master the art of insightful reporting. 🔘 Internal Auditor: For the diligent and detail-oriented. 10. Risk Assessments: Spot vulnerabilities before they escalate. 11. Process Evaluations: Streamline operations for efficiency. 12. Compliance Checks: Ensure adherence to financial standards. 13. Recommendations: Provide insights for optimization. 🔘 Tax Specialist: Navigate the intricate maze of taxation. 14. Tax Strategy: Formulate effective tax-saving methods. 15. Compliance & Reporting: Adhere to the ever-evolving tax laws. 16. Audit Defense: Safeguard against potential tax inquiries. 17. Tax Forecasting: Predict future tax implications. 🔘 Accountant: The backbone of everyday financial health. 18. Record Keeping: Maintain pristine financial records. 19. Financial Statements: Generate periodic business health reports. 20. Reconciliation: Ensure accuracy in books. 21. Tax Preparation: Assist in timely and accurate tax filing. These roles encompass different aspects of Finance & Accounting, catering to various interests and skill sets. Explore these areas, identify your interests, and tailor your learning path accordingly. Determined to elevate your financial strategy but unsure where to start? Dive deep, identify your needs, and let's craft the best financial roadmap for your success." ________  Don’t just work, work wonders!     Follow for top Office Productivity Hacks

As I reflect on my journey in bookkeeping and accounting, there's one pivotal lesson that stands out above all others: the dangers of wrong financial data. Allow me to share a personal story that profoundly shaped my understanding of this crucial aspect of the financial world. Early on in my career, I was entrusted with managing financial data for a growing company. Eager to prove myself, I entered numbers, ran calculations, and generated reports.  Everything seemed to be going smoothly until discrepancies began to emerge. At first, they seemed minor, easily dismissed as insignificant errors in the vast sea of data. With time, these discrepancies evolved into a tangled web of confusion and frustration. Reconciliations became a nightmare. What started as innocent mistakes in data entry had turned into a full-blown crisis. It was a wake-up call. It reminds me to date of the immense responsibility that comes with managing financial data. The consequences of inaccuracies in financial reporting can be dire, impacting not only the bottom line but also the reputation and longevity of a business. This experience gave me invaluable insights into the importance of accuracy, transparency, and diligence in financial management. I realized that every number and every transaction carries weight. A ripple effect that can either propel a company forward or lead it astray. These are the lessons I have learned from my journey. 💵Prioritize data integrity - this mainly involves investing in good accounting software and also ensuring the accuracy and reliability of financial data 💵Attention to detail - this is key and powerful in finance. Even the smallest error can have repercussions. Hence scrutinize reports, and seek clarification when in doubt. 💵Embracing transparency and honesty - another key area I have personally witnessed. In case of a mistake, we can own up to it, learn from it, and take steps to prevent it from happening again. Trust is fragile, but transparency can help mend it. The moral of the story is the dangers of wrong financial data cannot be over-emphasized. However, with diligence and commitment to integrity, we can navigate the complexities of the financial world with clarity and confidence. What have you learnt in your line of duty that you carry on to date? PS: I am enthusiastic to assist entrepreneurs and businesses in navigating through these complexities. DM me “Accounts” and we start the journey to a successful enterprise. #Bookkeeping #Accounting #Taxation