Nicolas Boucher on LinkedIn: THE 13 ACCOUNTING PRINCIPLES | 44 comments (2024)

Generative AI for ManagersStill figuring out how to use AI in your work? Here are 50 use cases💡 Get my free guide and learn how you can use ChatGPT: https://lnkd.in/ewV5TrWuHow can you, as a manager, use GenAI to improve your work?Here are the 50 use cases:1. Employee Management• Draft performance reviews• Create recognition messages for achievements• Generate onboarding plans and checklists• Develop training content outlines• Offer conflict resolution advice2. Data Analysis• Explain data analysis techniques• Offer spreadsheet formula guidance• Suggest tools for data visualization• Help interpret data findings• Provide templates for reporting3. Communication• Guide on feedback delivery.• Suggest strategies for effective meetings• Generate presentation outlines• Offer tips for clear and impactful writing• Provide guidance on negotiation tactics4. Tools• Suggest software tools for efficiency• Provide tutorials for common software• Offer advice on digital security practices• Guide on integrating new technologies• Suggest mobile apps for productivity5. Problem-Solving• Offer frameworks for decision-making• Suggest steps to analyze a problem• Provide conflict resolution strategies• Offer brainstorming techniques• Suggest methods to prioritize actions6. Project Management• Generate project plan templates• Offer tips for effective project tracking• Suggest tools for team collaboration• Provide risk management strategies• Guide on setting realistic milestones7. Strategic Planning• Help draft vision and mission statements• Offer SWOT analysis guidance• Suggest goals and objectives frameworks• Provide industry trend analysis• Offer templates for strategic plans8. Financial Oversight• Suggest budgeting templates• Offer tips for financial forecasting• Guide on cash flow management• Provide cost reduction strategies• Suggest financial performance metrics9. Customer Relations• Draft templates for customer feedback• Offer strategies for client retention• Suggest communication tactics for client meetings• Provide guidance on managing customer expectations• Offer tips for handling customer complaints10. Innovation & Improvement• Provide case studies of industry innovations• Suggest tools for tracking improvement• Offer advice on fostering an innovative culture• Guide on evaluating new ideas• Provide strategies for scaling solutionsWhich use case did I miss?💡 Get my free guide and learn how you can use ChatGPT: https://lnkd.in/ewV5TrWu

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Learn about real AI use cases from a doctor specialized in AI.Ilyas Iyoob, PhD has been researching and helping companies using AI and Data science for many years.I am lucky to have him share his experience and insights with the finance community!He will share with us real use cases of how he helped companies by using AI.We will discuss the right frameworks to use when dealing with data and the mistakes to avoid when launching an AI project!Make sure to join us!And if you have questions, you can already ask them below👇

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Before AI there are Humans.Today I want to help a friend.And i want you to help him too.My friend Pieter Slegers is launching his book.So I want our community to help himI have two asks:1) If you love investing: tell me below your favorite stock!2) If you want to invest in yourself, you can check Pieter's book here: https://geni.us/SlNoKQL

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Top 21 Excel Formulas👉 Download the High Resolution PDF: https://lnkd.in/euz2N8jE10x your productivity with these 21 Excel must known formulas:1. SUMAdds all numbers in a rangeExample: =SUM(A1:A9)Add values from cell A1 to A92. AVERAGECalculates the average of numbers in a rangeExample : =AVERAGE(B1:B9)Average of B1 to B93. ROUNDRounds a number to a specified number of digitsExample: =ROUND(C1;2)Round C1 to 2 decimal place s4. MINIdentifies the lowest number in a rangeExample: =MIN(D1:D9)Find the minimum in D1 to D95. MAXFinds the highest number in a rangeExample: =MAX(D1:D9)Get the maximum value in D1 to D96. COUNTCounts the number of cells that contain numbersExample: =COUNT(F1:F9)Count numeric cells in F1 to F9*It only counts the numerical inputs7. INDEXReturns a value in table based on row & column numberExample: =INDEX(K1:L10,2,3)For the value in the 2nd row & 3rd column from the range K1:K108. MATCHSearches for a value and returns its relative positionExample: =MATCH(L1,M1:M9,0)To find L1's position from the range M1:M99. VLOOKUPSearches for a value in the first column of a rangeExample: =VLOOKUP (G1,H1:H10,2,FALSE)To find G1 in H1:H1010. HLOOKUPSearches for a value in the top row of a table*Number of rows that contains the data you want to retrieveExample: =HLOOKUP(I1,J1:S2,2,FALSE)To find I1 in the top row J1:S211. COUNTIF/COUNTIFSCounts cells that meet a conditionExample: =COUNTIF (N1:N9;">5")To count cells greater than 512. COUNTACounts non-empty cellsExample: =COUNTA(O1:O9)To count all non-empty cells in a range13. SUMIF / SUMIFSCounts non-empty cellsExample: =SUMIF(P1:P9,">5")Add cells that meet a condition14. IF / NESTED IFSPerforms conditional testsExample: =IF(R1>5;"Yes";"No")For simple conditionsNote:IF: 1 variableIFS: multiple variables=IF(test, true, false)=IF(test1, true, IF(test2, true, false)) Nested IF=IFS(test1, true, test2, true, test3, true)15. AVERAGEIF / AVERAGEIFSCalculates the average for cells that meet criteria=AVERAGEIF(Q1:Q9;">5")Average of values over 516. Logical Operators (AND, OR)Combines multiple conditionsExamples:=AND(S1>5;S2<2)Both conditions are true => Output is true=OR(S1>5;S2<2)Just 1 condition is true => Output is true17. CONCATENATEJoins two or more text stringsExample: =CONCATENATE(T1," ",T2)Combine first name and last name in one cell18. LEFT/RIGTHExtracts characters from the start/end of a text stringExamples:=LEFT(U1;5)Excel=RIGHT(U1;5)Class19. MIDExtracts characters from the middle of a text stringExample: =MID(V1;7;7)7 characters starting from the 7th => Mastery20. TEXTConverts a value to text in a specific number formatEx: =TEXT(V1;”MMM-YY")7/02/2024 => Feb-2421. IFERRRORReturns a custom result if a formula errors outEx: =IFERROR(W1,"0")Give 0 as output, instead of "# div" error👉 How many did you know?

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EBITDA explained to KidsExplanations for kids... and adults!——Grab my Free CV Template: https://lnkd.in/etKjH2Jg ——💰 What is EBITDA?EBITDA stands for:EarningsBeforeInterestTaxesDepreciationAmortizationIt's a financial metric that shows how much money a company makes before taking into account certain expenses.❗️ Why is EBITDA important for Businesses?EBITDA is important because it gives businesses an idea of how much money they're generating from their operations. This is useful for investors and lenders who want to know how profitable a company is.It’s like a scorecard to know how much money a company is making.💸 How is EBITDA calculated?To calculate EBITDA, you need to start with a company's revenue and subtract its cost of goods sold. Then, you subtract its operating expenses (like salaries and rent).This gives you the company's EBITDA.👧🏼 Example:Let's say you and your friends sell lemonade from a stand.You make $20 selling lemonade, but you spent $5 on lemons, sugar, and cups.You also spent $5 on flyers to advertise your lemonade stand.To calculate your EBITDA, you would start with the $20 you made selling lemonade, and subtract the $5 you spent on lemons, sugar, and cups.This leaves you with $15. Then, you would subtract the $5 you spent on advertising.This leaves you with an EBITDA of $10.🔼 EBITDA vs Net IncomeImagine that on top of your expenses of your lemonade stand you have to pay taxes (for example to be allowed to sell on the street).Imagine as well that you need to put money aside to invest in a new machine or a new stand because your machine is getting old.This is called depreciation.In EBITDA, you don’t take consideration these expenses.But the net income is what remains as profit after all these expenses are taken in account.👉 Do you have other examples?Share this example around with kids… and adults!(By liking or commenting you will help give visibility to this post, if you found it valuable, consider giving a like 😉)

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Budgeting & Forecasting 101: everything in one placeBonus: steal my extensive budgeting checklist: https://lnkd.in/edvf5exs1. Annual vs Rolling ForecastAnnual• Fixed timeframe and budget, not subject to change mid-year• Requires forecasting future revenues and expenses• Provides a clear set of performance metrics for the yearRolling Forecast• Dynamic & flexible, allows for changes to be made mid-year• Dynamic business strategies adapt to real-world outcomes• Enhances forecasting precision and decision support2. 10 Scenario Analysis Frameworks• What if AnalysisVariables affecting business: raw material, price, shipping, regional demandEx: "What if limestone prices rise by 10%?"• ProbabilisticAssign probabilities based on data/insightsEx: 20% Chance of Major Supply Chain Disruption• Monte CarloSimulate scenarios, calculate probabilitiesEx: Understand business fluctuations•ClusteringCluster Scenarios for Analysis EfficiencyEx: Cluster raw material and labor cost scenarios• StorytellingCraft scenarios for stakeholders' foresightEx: Company's Fate: Boom or Bust• SensitivityAnalyze input change impact on profitsEx: Assess ±5% energy cost's profit effect• Stress testingAssess extreme risks, Evaluate resilienceEx: Decrease in demand or material shortage• BrainstormingEngage stakeholders for diverse scenariosEx: Anticipate shifts in politics, economy, or industry• MatrixCreate a matrix with uncertainties & scenariosEx: Energy price volatility vs. Regulatory changes• SimulationSimulate company performance with softwareEx: Analyze 10% more cement demand effects3. Budgeting ChecklistUnderstanding the Industry• Understand business & industry deeply• Analyze financial data for insights• Develop and maintain forecasting models• Analyze sensitivity for impactsBudgeting Policies• Budget policy creation & execution• Manage the budget process and timeline• Assess budget vs. performance• Identify and manage budget variancesFinancial Guidance• Mitigate risk with hedging• Offer financial advice to units• Financial & strategic planning• Stay current on finance updates4. Six Forecasting Best PracticesData Integrity• Ensure accuracy and consistency in data sources• Regularly clean and update datasetsUse Multiple Methods• Combine quantitative and qualitative methods• Validate results against different forecasting techniquesCollaboration• Collaborate: sales, ops, finance teams• Collect frontline staff insights for market interactionScenario Analysis• Analyze scenarios: best, worst, and likely outcomes• Anticipate market volatility; ready for demand spikesRegular Review• Schedule periodic forecast review meetings• Utilize rolling forecasts for data adaptabilityFeedback Loop• Compare forecasted data with actual outcomes• Utilize past errors to enhance upcoming predictionsBonus: steal my budgeting checklist: https://lnkd.in/edvf5exs

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All my KPIs Cheat Sheets in one Zip fileHere is the download link: https://lnkd.in/eMbknGFeThis is the collection of my most valuable KPIs resourcesHere are the top 10:1. KPIs Cheat SheetComprehensive Cheat Sheet of the most important 50 KPIs on Accounting, Cash, CEO, SaaS, and Investor.2. 50 Finance KPIsTop 50 most valuable KPIs for Finance Professionals.3. KPIs Cheat Sheet Part 2Comprehensive Cheat Sheet of 50 KPIS you need to know on Headcount, Capex, Balance Sheet, Tax, and Inventory with explanations and formulas.4. 10 CAPEX KPIsThe top 10 KPIs to help you measure your CAPEX with explanations and formulas.5. 10 Accounting KPIsThe 10 most important Accounting KPIs with explanations and formulas provided.6. 100 KPIsThe biggest single resource of KPIS with 100 of them including explanations and formulas.7. 10 CFO KPIsThe top 10 KPIs for CFO dashboards with explanations and formulas.8. 10 Cash KPIsThe top 10 Cash KPIs with descriptions and formulas.9. 10 Finance Teams Metrics & KPIsMeasure your finance team's performance with this valuable KPIs.10. 10 Investor KPIsThe top 10 KPIs to help investors with descriptions and formulas!👉 If you want it like & commentHere is the download link: https://lnkd.in/eMbknGFe

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Machine Learning Explained To KidsEverybody is talking about it.Reas below to understand ML!Machine Learning (ML) is based on algorithms that learns from examples to make decisions and predictions.Just like you learn to solve puzzles!It’s like having a helpful robot that learns to do tasks better over time.Or like when you play a ball game and the more you play, the more you can predict where goes the ball next.🟠 How does Machine Learning work?:1.Data Gathering: Imagine a bakery that sells cake. The more they ask their clients which cake they like, the more data they have2.Learning: Like trying different combinations to make the best cake and comparing results3.Making Predictions: After learning which cake tastes best, the chef can make more of great cakes and sell more of it!🟠 Machine Learning in Everyday Life:• Netflix showing you shows you may like• A game adjusting its difficulty based on you🟠 Machine Learning vs. Humans:ML is like a super-fast learner that can process lots and lots of information quickly.But it doesn’t have feelings or creativity like humans!🟠 How Finance can use machine learning in their work?Budgeting and Forecasting:•Predictive Analysis:Use historical financial data and machine learning algorithms to predict future revenue, expenses, and cash flow•Seasonal Trend Analysis:ML can identify patterns in sales data that correlate with seasons, holidays, or other cyclical events to anticipate fluctuations in financial needsRisk Management:•Credit Scoring:Implement ML models to assess the creditworthiness of clients or partners, improving risk assessment and decision-making in extending credit or investing•Fraud Detection:Apply anomaly detection algorithms to flag unusual financial transactions that could indicate fraudOperational Efficiency:•Resource Optimization:Use ML to optimize the allocation of financial resources across projects or departments, ensuring the best possible return on investmentCash Management:•Cash Flow Forecasting:Leverage ML to improve cash flow forecasting by incorporating a variety of internal and external factors•Optimal Cash Reserves:ML models can recommend optimal levels of cash reservesPricing Strategy:•Dynamic Pricing Models:Implement ML models to adjust prices in real-time based on market demand, competitor pricing, and inventory levels•Price Optimization:Use ML for price optimization to maximize revenue or market share, considering customer price sensitivity and product lifecycle🟠 How can you start?Two ways:1. In Python: use functions like- Linear regression (for correlations)- Prophet (seasonality)- Arima (for time series)2. In Excel: with the add-in “Toolpak”Try a regression analysis:Make your data in two columns:- independent variable (predictor, e.g., advertising spend)- dependent variable (outcome, e.g., sales)And apply the add-in data analysis functions!

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How to reduce inventories?5 finance-led propositions to consider if you are working for a manufacturing company.I have worked for many years as a head of finance for a manufacturing company.To improve our cash flows, monitoring inventories was one of the critical elements of success.---Get my free 300 pages ebook "Mega Finance Guide". Here: https://lnkd.in/eGVVid_P---1️⃣ Analyze inventory turnover ratiosIt helps you identify slow-moving or obsolete inventory.It also enables you to make more informed decisions regarding inventory management.Implementation process:Step 1: Calculate inventory turnover ratios for different inventory categoriesStep 2: Identify slow-moving / obsolete inventoryStep 3: Implement measures to reduce inventory levels, such as offering discounts or promotions or liquidating inventory2️⃣ Implement vendor-managed inventoryAlso called VMI.It involves your supplier managing your inventory level, reducing the need for your company to hold excess inventory.Implementation process:Step 1: Identify critical suppliers & establish VMI agreements with themStep 2: Work with suppliers to develop accurate demand forecasts and inventory management plansStep 3: Continuously monitor inventory levels and supplier performance3️⃣ Use inventory financingInventory financing allows you to use inventory as collateral to obtain financing, reducing the need for excess inventory and providing working capital to fund operations.Implementation process:Step 1: Evaluate inventory financing options and choose a suitable financing providerStep 2: Use inventory as collateral to obtain financingStep 3: Continuously monitor inventory levels to ensure sufficient collateral and timely repayment of the loan4️⃣ Implement ABC analysisABC analysis involves categorizing inventory items based on their relative importance and value. This allows you to allocate resources and manage inventory levels more efficiently.Implementation process:Step 1: Categorize inventory items into A, B & C categories based on their relative importance and valueStep 2: Set inventory targets for each category based on factors such as demand variability and lead timeStep 3: Implement measures to reduce inventory levels for lower-value items, such as lowering safety stock levels or using just-in-time inventory management5️⃣ Implement consignment inventoryConsignment inventory involves storing inventory at a customer's location until it's sold, reducing the need for the seller to hold excess inventory and improving cash flow.Implementation process:Step 1: Identify suitable customers for consignment inventory arrangementsStep 2: Establish a consignment inventory agreement with customers, outlining the terms and conditions of the arrangementStep 3: Continuously monitor inventory levels & customer demand to ensure timely replenishment and efficient inventory management👉 What would you add?

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