Nicolas Boucher Online on LinkedIn: Top 10 Finance Certifications Young finance professionals always ask me… | 222 comments (2024)

Deferred Revenue VS Deferred ExpensesEver heard about deferred revenue but never clearly understood what it means?1/ What is deferred revenueDeferred revenue is the part of the revenue you invoiced in advance for products or services that are going to be delivered in the future.-> Examples of deferred revenueYou are a software company and you invoice for a 1 year subscription.You will recognize 1/12 of this amount as revenue each month. The rest stays in deferred revenue in the balance sheet as liabilities (you owe the client the service).2/ What is deferred expensesDeferred expenses are costs that have been invoiced from your suppliers but not incurred.These expenses are typically for goods or services that will be used in the future.-> Examples of deferred expensesYou receive the invoice for the cost of a service (generally it’s also when you pay in advance) that will be provided in the next 12 month. The cost of the service is deferred and each month 1/12 be recognized as an expense.Note: deferred revenue and deferred expenses are not the same as prepaid expenses or cash received in advance.However, for simplication purposes, smaller companies might recognize the invoices as deferred when they have pre-paid or receive the cash in advance.It helps to reduce the payable/receivables accounts for services not received or executed.In this situation, pre-paid expenses = deferred expenses and cash received in advance = deferred revenue.👉 Did this small lesson help you?-------🤖 Learn ChatGPT and use it to become more productiveAnd secure your future against the rise of AI!Take my ChatGPT for Finance Video Course• 2.5 hours of on demand videos• 92 Pages of PDF• 450+ prompts• Practical exercises• 10 Prompt Engineering Methods for Finance• Taken by more than 1,000 people and rated 5 starsGrab your offer here:https://lnkd.in/dhXV9tPC

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ChatGPT for Finance - Cheatsheet(100+ Use Cases)My goal is to convince all finance pros to use ChatGPT.And you can benefit from my discount which will end in 48h:https://lnkd.in/dhXV9tPCIf you ignore ChatGPT, you are missing out.But I am here to inform you about all its use cases for Finance.Here are 100+ use cases you can learn from me:📝 Writing1. Emails2. Memos3. Instructions4. Presentations5. Speech6. Dunning Letter7. Minutes8. Report9. Checklist10. Action Plan11. Executive Summary12. Agenda13. Proposal14. Template15. Cover Letter16. Press Release17. Notes to Financial Statements18. Project plan19. Policy Document20. User Manual📑 Draft Procedures21. Invoice Approval Procedure22. Expense Reimbursem*nt Protocol23. Monthly Closing Checklist24. Budget Management Guide25. Payroll Processing Workflow26. Cash Handling Manual27. Financial Reporting Framework28. Tax Compliance Procedure29. Vendor Management Policy30. Internal Audit Guidelines31. Credit Management Procedure32. Debt Collection Protocol33. Capital Expenditure Approval Process34. Fixed Asset Management Policy35. Investment Evaluation Procedure36. Financial Forecasting Guide37. Fraud Prevention and Detection Protocol38. Purchasing and Procurement Procedure39. Financial Risk Assessment Framework40. External Audit Coordination Procedure📊 Financial Analysis41. Cost42. Pricing43. Liquidity44. Revenue45. Cash flow46. Sensitivity47. Profitability48. Break-even49. Financial ratio50. Working capital51. Debt and equity52. Budget variance53. Capital structure54. Capital budgeting55. Financial statement56. Investment appraisal57. Risk assessment58. Cost-volume-profit (CVP)59. Financial performance benchmarking60. Return on Investment (ROI)💡 Solve complex problems61. Risk mitigation ideas62. Tax liability reduction63. Vendor management64. Inventory optimization65. Cost-saving strategies66. Cash flow optimization67. Cost driver identification68. Cost allocation optimization69. Capital investment decisions70. Capital expenditure approval71. Capital structure optimization72. Working capital management73. Sustainable finance initiatives74. Financial performance metrics75. Financial controls improvement76. Financial reporting improvement77. Financial modeling enhancement78. Foreign currency risk management79. Financial forecasting enhancement80. Financial performance monitoring⚙️ Tool teacher81. Word82. Excel83. Outlook84. PowerBI85. Powerpoint86. PowerQuery87. SAP88. Xero89. Sage90. Oracle91. Netsuite92. Anaplan93. Bloomberg94. Quickbooks95. Thomson Reuters96. Microsoft Dynamics97. SQL98. HTML99. Python100. Javascript🧠 Other use cases (see Cheatsheet below)

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Annual Budgeting vs Rolling ForecastThere are different types of budgeting.Today, we are diving into the differences of Annual budgeting and Rolling Forecast.Here’s acomparison between annual budgeting and rolling forecast:Annual Budgeting:• 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 and flexible, allows for changes to be made mid-year• Continuously updated and revised to reflect actual results and changes in the business environment• Provides more accurate forecasting and better information for decision-making.Annual Budgeting:• Pros: Provides a clear set of performance metrics for the year, allows for long-term planning• Cons: Can be inflexible and may not allow for changes to be made mid-year, forecasting may not be accurateRolling Forecast:• Pros: Dynamic and flexible, allows for changes to be made mid-year, provides more accurate forecasting and better information for decision-making• Cons: Requires more frequent updates and revisions, can be more time-consuming and resource-intensive.👉 If you have the systems and culture, I recommend to go for a rolling forecast.I will help you navigate better and spend less time on the budget as it will be part of your routine.👉 Which method do you use?-------🤖 Learn ChatGPT and use it to become more productiveAnd secure your future against the rise of AI!Take my ChatGPT for Finance Video Course• 2.5 hours of on demand videos• 92 Pages of PDF• 450+ prompts• Practical exercises• 10 Prompt Engineering Methods for Finance• Taken by more than 1,000 people and rated 5 starsGrab your offer here:https://lnkd.in/dhXV9tPC

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10 Accounting KPIsYou work in accounting?These are the 10 KPIs I would recommend you to know:1/ Accounts Receivable TurnoverDescription: Measures how quickly a company collects outstanding debts from customersFormula: Net Credit Sales / Average Accounts Receivable2/ Accounts Payable TurnoverDescription: Measures how quickly a company pays its suppliersFormula: Total Supplier Purchases / Average Accounts Payable3/ Working Capital RatioDescription: Measures a company's ability to meet its short-term financial obligationsFormula: Current Assets / Current Liabilities4/ Debt-to-Equity RatioDescription: Measures the proportion of a company's financing that comes from debt versus equityFormula: Total Debt / Total Equity5/ Gross Profit MarginDescription: Measures the percentage of revenue that is left over after deducting the cost of goods soldFormula: (Revenue - Cost of Goods Sold) / Revenue6/ Net Profit MarginDescription: Measures the percentage of revenue that is left over after deducting all expenses, including taxesFormula: Net Income / Revenue7/ Return on Assets (ROA)Description: Measures how efficiently a company uses its assets to generate profitsFormula: Net Income / Total Assets8/ Return on Equity (ROE)Description: Measures how much profit a company generates with the money shareholders have investedFormula: Net Income / Total Equity9/ Inventory TurnoverDescription: Measures the number of times inventory is sold and replaced during a periodFormula: Cost of Goods Sold / Average Inventory10/ Fixed Asset TurnoverDescription: Measures how effectively a company uses its fixed assets to generate salesFormula: Revenue / Net Fixed Assets👉 Which KPI did I miss?--------🤖 Learn ChatGPT and use it to become more productiveAnd secure your future against the rise of AI!Take my ChatGPT for Finance Video Course• 2.5 hours of on demand videos• 92 Pages of PDF• 450+ prompts• Practical exercises• 10 Prompt Engineering Methods for Finance• Taken by more than 1,000 people and rated 5 starsGrab your offer here:https://lnkd.in/dhXV9tPC

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Top 10 Free Finance ResourcesI have spent hours making the most valuable finance resources for you.If you want them, just like & comment.And click here to download it:https://lnkd.in/etR7W9xhDon't keep these valuable resources for yourself, reshare this post!Here is what is included:1. Top 100 Excel TipsThe best Shortcuts, Formulas, Formatting & Advanced Tips2. 100 Finance AnswersLearn Accounting / Excel / KPIs / Cash3. Create a Winning CVFree CV for you.4. 100 Productivity TipsSave hours using Excel, PowerPoint, Outlook, Word.5. Budgeting ChecklistGet this checklist to organize your budget process.6. Financial Transformation Assessment ChecklistUse this assessment and then get our finance transformation guide.7. Free Excel TemplateSave time and optimize your cash with this ready to use free template.8. KPIs Cheat SheetThe 50 KPIs you need to know.9. Finance Cheat SheetA full Finance Book in one page.10. KPIs Cheat Sheet part 250 additional KPIs for Finance including explanations and formulas.------🤖 Learn ChatGPT and use it to become more productiveAnd secure your future against the rise of AI!Take my ChatGPT for Finance Video Course• 2.5 hours of on demand videos• 92 Pages of PDF• 450+ prompts• Practical exercises• 10 Prompt Engineering Methods for Finance• Taken by more than 1,000 people and rated 5 starsGrab your offer here:https://lnkd.in/dhXV9tPC

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28 ways to use ChatGPT in FinanceI am on a mission to make Finance the champions...The champions of using ChatGPT in Business!I have many more tips on how you can use ChatGPT to help you in your work.All of it is available here and at a special price for the next 48h:https://lnkd.in/dhXV9tPCI believe we can and should all of us use this technology to improve our work.This is why I have made this infographic for you.You can see:4 ways it can help CFOs4 ways it can help AR & AP4 ways it can help budgeting teams4 ways it can help financial analysis teams4 ways it can help tax & compliance teams4 ways it can help accountants and controllers4 ways it can help internal & external audit teamsIf you want to finally know how to use ChatGPT in Finance, take my video course which you can get it at a discount in the next 48 hours.Get it here:https://lnkd.in/dhXV9tPC

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Be the first to learn Copilot for FinanceHere is everything you can do:📊 ExcelGenerate formulasPrompt example: “Add a column that calculates the margin”Identify insightsPrompt example: “Show the total sales of January 2024”🖥️ PowerpointCreate presentationPrompt example: “Create a presentation for an investment business case”Summarize presentationsPrompt example: “Create an outline from this presentation”📑 WordDocument DraftingPrompt example: “Draft a procedure for a bank reconciliation”Ask question about the documentPrompt example: “Is there a definition of revenue recognition in this document”📧 OutlookSummarize email threadPrompt example: “Summarize the key points from this discussion”Draft your emailsPrompt example: “Draft an answer to this email”💡 Do you want to be the first to know how to use Copilot for Finance?If yes, then save yourself time and become a pro in just 2 hours.How?By learning it here with two AI Finance Experts (Christian M.and myself).Link here:https://lnkd.in/dTXtVdcS

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You need to cut cost?I have had to run many cost savings programs.Based on my experience, here is what you should do:1. Negotiate better deals with suppliers:- Review your current contracts with suppliers to identify areas where costs can be reduced- Conduct market research to compare prices & services- Negotiate new contracts or renegotiate existing ones2. Reduce employee headcount through attrition and/or restructuring:- Conduct an analysis of your current workforce to identify areas where headcount can be reduced- Review the management layers and spans of control- Implement strategies to encourage employees to leave voluntarily, such as offering early retirement packages3. Automate processes:- Identify manual processes that can be automated- Invest in software or technology to automate these processes- Train employees on how to use the new technology to maximize efficiency4. Reduce waste/scrap:- Conduct a waste audit to identify areas where waste is generated & how it can be reduced- Implement processes to reduce scrap- Train employees on the importance of improving the quality of products & how they can contribute5. Outsource non-core functions:- Identify functions that are not core to your business & that can be outsourced- Research & select outsourcing partners based on cost, quality, and reliability- Negotiate contracts & transition the work to the outsourcing partners6. Implement energy-saving measures:-Conduct an energy audit to identify areas where energy consumption can be reduced-Prioritise the replacement of machines consuming too much energy-Communicate on the culture of energy saving7. Improve inventory management:- Conduct an inventory audit to identify areas where inventory can be reduced- Implement processes to minimize excess inventory, such as just-in-time ordering or consignment programs- Train employees on the importance of accurate inventory management & how they can contribute8. Reduce discounts:- Conduct market research to understand your customers' willingness to pay and the prices charged by competitors- Evaluate your current pricing & discount policies to determine if they are optimized for profitability9. Reduce travel & entertainment expenses:- Evaluate current policies to identify areas where costs can be reduced- Implement cost-saving measures, such as booking travel in advance or reducing the frequency of business travel10. Reduce rent and/or real estate expenses:- Evaluate your current real estate portfolio to identify areas where costs can be reduced- Negotiate better deals with landlords or consider relocating to lower-cost facilities👉 What else would you add?-------🤖 Become more efficient thanks to ChatGPTSecure your future by being the one who knows how to use AI!Take my ChatGPT for Finance Video Course• 2.5 hours of on demand videos• 450+ prompts• Rated 5 starsGrab your Offer here: https://lnkd.in/dhXV9tPC

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10 CV Tips for Finance Professionals1. Keep your CV concise and to-the-point, highlighting your relevant experience and skills specific to finance and the role you target.2. Use a professional and modern template to showcase your personal brand.Finance professionals need to present a lot of figures and information to management.Through the format of your CV you can showcase your ability of presenting information professionally and without mistakes/format inconsistency.3. Tailor your CV to the specific job you're applying for, highlighting relevant accomplishments and experience.4. Use action verbs and quantifiable metrics to showcase your achievements and impact.5. Include a strong summary statement that showcases your value and sets you apart from other candidates.6. Keep your CV up-to-date and regularly review and refresh it.7. Showcase your technical skills and knowledge of industry-specific software and tools (be specific about which ERP you work with and what you did with the MS Office tools).8. Include any relevant certifications or professional memberships.9. Focus on accomplishments rather than just listing your job duties.10. Have a professional review your CV before submitting it to potential employers.👉What are your CV tips you can share?--------🤖 Learn ChatGPT and use it to become more productiveAnd secure your future against the rise of AI!Take my ChatGPT for Finance Video Course• 2.5 hours of on demand videos• 92 Pages of PDF• 450+ prompts• Practical exercises• 10 Prompt Engineering Methods for Finance• Taken by more than 1,000 people and rated 5 starsGrab your offer here:https://lnkd.in/dhXV9tPC

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Cash explained to KidsExplanations for kids... and adults!My daughter is 6 and starts counting her money.Here is what I would tell her but translated in French ;)💵What is Cash Flow?Cash flow is like the money that comes in & out of your wallet.👩💼Why is it important?People & businesses need to make sure they have enough money coming in to pay for things like rent, salaries, supplies & toys.They also need to make sure they have enough money to invest in the future.🌀Net Income vs. Cash:Net income is not the same as cash flow.Net income is the profit a business makes after subtracting expenses from revenue.Net income does not take into account changes in cash, such as money spent on buying assets or money received from a loan.Example:Let's say your lemonade stand makes $100 in revenue and has $80 in expenses, so your net income is $20.However, if you also spent $15 on a new lemon squeezer, your cash flow would actually be only $5.⚙️Investing in assets (Capex):It’s another aspect.This means using your money to invest in long-term assets that can generate more revenue or improve the efficiency of your business (or a house, a car).Example:Let's say you run a lemonade stand & want to increase your production.You might invest in a new lemon squeezer.This would require spending some money upfront, but it could pay off in the long run by helping you sell more lemonade.📆What is Liquidity Planning?Liquidity planning is an important aspect of cash flow management.This means making sure you have enough cash on hand to cover your expenses in case there's an unexpected cost or decrease in sales.Example:Let's say you're running a lemonade stand and one day it rains, so you don't make as much money.If you didn't plan for this and save enough money, you might not be able to afford to buy more lemons and sugar for the next day.🏦Financing:Financing is the final aspect of cash flow management.This means borrowing money to invest in your business or to cover expenses when you don't have enough cash on hand.Example:If you want to buy a new lemon squeezer but don't have enough money, you could borrow some money from your parents or a friend.However, it's important to make sure you can pay back the money you borrow.📝Managing Your Cash Flow:It means keeping track of how much money you have coming in and going out.It also means planning for unexpected expenses, investing in capex, and using financing wisely.It’s important to manage your money well so you use it to achieve your goals like studying or going on holidays and avoid running out of cash.👉 Which other explanation would you give if you had to explain cash to a kid?------------🤖 Become an advanced user of ChatGPT and use it to get more work done in FinanceHow? Join 1,000s of Finance Pros who took the course: https://lnkd.in/dhXV9tPC

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