The Finance Gem 💎 Week #60: Free Finance & Accounting Education You Can't Miss

BEFORE WE GET STARTED

• Last couple of weeks I asked our community: “How has remote work impacted their company’s operations?”. Here’s what your peers voted:

• I also asked “What skill do you think is most crucial for finance professionals to develop right now?” and here’s what 900 of you voted:
  

• I’d love to get your thoughts on this week’s polls. Scroll below to share what you think!

LET’S GET INTO THIS WEEK’S STRATEGIC FINANCE INSIGHTS

1. Linkedin is Free Education

2. The Financial Analysis Cheat Sheet

3. The CFO Checklist

4. IRR vs. ROI

5. Finance is not Accounting

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1. LinkedIn is Free Education

You can get access to some of the best finance and accounting courses.

Taught by experts in their fields, professors, CPAs, PMPs and MBAs.

For 𝗙𝗥𝗘𝗘.

➡️ 𝗔𝗹𝗹 𝘆𝗼𝘂 𝗻𝗲𝗲𝗱 𝗶𝘀 𝗮 𝗟𝗶𝗻𝗸𝗲𝗱𝗶𝗻 𝗣𝗿𝗲𝗺𝗶𝘂𝗺 𝘁𝗿𝗶𝗮𝗹. Cancel it after 30 days and you won't get charged.

You'll get 30 Days to explore and take all the courses you need to grow your skills and knowledge in finance and accounting.

➡️ 𝗟𝗶𝗸𝗲, 𝗖𝗼𝗺𝗺𝗲𝗻𝘁, 𝗥𝗲𝗽𝗼𝘀𝘁, 𝘁𝗵𝗲𝗻 𝗱𝗼𝘄𝗻𝗹𝗼𝗮𝗱 𝗵𝗲𝗿𝗲: https://lnkd.in/eTaMkhYc

Accounting Foundations -

https://lnkd.in/em3matqb 

Financial Accounting Part 1 -

https://lnkd.in/eBGy23X2 

Financial Accounting Part 2 -

https://lnkd.in/e8n-J7vU

Finance Foundations: Income Taxes -

https://lnkd.in/e-ThHHum 

Accounting Foundations: Budgeting -

https://lnkd.in/eH_7gkSd 

Driving Business Impact for Finance Professionals -

https://lnkd.in/e4iQC3zj

Corporate Finance: Environmental, Social, and Governance (ESG) -

https://lnkd.in/e8MfXDFr

Corporate Financial Statement Analysis -

https://lnkd.in/eWiThd_S

Excel for Finance: Building a Three-Statement Operating Model -

https://lnkd.in/ef2JNsVH

Using ChatGPT and Generative AI in Finance -

https://lnkd.in/e83Cgcw3

Finance for Non-Financial Managers -

https://lnkd.in/eVa6iaPR 

Finance Foundations: Business Valuation -

https://lnkd.in/eyjTCHWz

Download a free PDF copy copy here.

2. The Financial Analysis Checklist

In a world packed with Data, do you struggle to tell the Story?

With the help of this 15 point checklist, you can now stop struggling and start winning.

Here's what the Financial Analysis Checklist includes:

👉 (this is an excerpt from my upcoming on-demand video course The Financial Analysis Masterclass - launching soon)

Use this Checklist to evaluate the financial health, performance, and viability of your business or project.

And spread the word to help others succeed as well.

Download a full resolution PDF for a limited time here. Afterwards you can purchase this and other checklists and cheat sheets on my website here.

3. The CFO Checklist

Are you a CFO? Do you want to become one?

Then you’ll need to master Financial Management.

Here is a strategic checklist across 15 key areas of the CFO role, to help you stay on track.

1. Budgeting and Forecasting

2. Cash Flow Management

3. Financial Analysis

4. Working Capital Management

5. Capital Structure

6. Risk Management

7. Tax Planning

8. Financial Reporting

9. Cost Accounting

10. Investment Evaluation

11. Financial Planning

12. Mergers and Acquisitions (M&A)

13. ESG-Driven Financial Management

14. People Management and Leadership

15. Technology and Digital Transformation

Download a free high resolution image here

If you’re looking to buy the full resolution PDF you can find it in my store

The Cash Flow Masterclass gets 5* Reviews!

~ Executive and Portuguese Versions now Available ~

s⭐⭐⭐⭐⭐ 

4. IRR vs ROI

IRR and ROI are both financial metrics used to evaluate investment profitability and to compare the profitability of different investments.

🎯 What do they mean?

⚫ IRR (Internal Rate of Return): The discount rate making the net present value (NPV) of investment cash flows zero.

🟢 ROI (Return on Investment): A financial ratio measuring the profitability of an investment as a percentage of the initial investment.

🎯 How do you calculate them?

⚫ IRR: NPV = ∑(Cash Flow_t / (1 + IRR)^t) = 0

🟢 ROI: (Investment cash flow - cost of investment) / cost of investment

🎯 What drives IRR & ROI?

⚫ IRR: Time value of money, cash flow timing, cash flow amounts, discount rate, project duration, risk.

🟢 ROI: Investment cash flow, cost of investment, project duration, risk.

🎯 How should you use them?

⚫ IRR: Evaluates investment profitability, compares different investments, determines break-even discount rate.

🟢 ROI: Measures investment efficiency, compares different investments, decides where to allocate funds.

🎯 How should you NOT use them?

⚫ IRR: Avoid when investment cash flows are expected to be both positive and negative during project

🟢 ROI: Avoid when time value of money, cash flow timing, and risk are crucial in investment decisions.

🎯 How are they different?

⚫ IRR is more complex, considering the time value of money.

⚫ IRR accounts for cash flow timing and amounts, providing a more accurate profitability picture

⚫ IRR may produce multiple solutions or none, making it difficult to interpret

⚫ IRR considers risk by accounting for the required discount rate to achieve a positive NPV

🟢 ROI is easier to calculate and understand

🟢 ROI ignores the time value of money

🟢 ROI doesn't consider risk

4. Finance is not Accounting

𝐀𝐜𝐜𝐨𝐮𝐧𝐭𝐢𝐧𝐠 VS. 𝐅𝐢𝐧𝐚𝐧𝐜𝐞

The Best 50 Linkedin Posts Curated for you.

Because Finance is NOT Accounting.

🎯 Here are the best 50 posts from myself and other top ranking Linkedin Finance and Accounting Content Creators curated for you.

🎯 Accounting:

1. The Best Intro to Accounting - Accounting Explained to Kids https://lnkd.in/ebfeTYYE

2. The 4 Accounting fundamentals - https://lnkd.in/eRfEEFuq

3. The Accounting KPIs https://lnkd.in/e4R65yAg

4. The Debits & Credits in Accounting - https://lnkd.in/eyDqv-E8

5. The Accounting Equation https://lnkd.in/efU6sYKm

6. The Cash vs Accrual difference - https://lnkd.in/ePfkkTXq

7. The 10 Accounting basics you need to know https://lnkd.in/exhm87KT

8. The 10 Main Accounting Principles https://bit.ly/4bV1uES

9. The Accounting Checklist https://bit.ly/3P7fC4d

10. The Accounting Cheat Sheet https://lnkd.in/eakRYYdC

11. How to Connect the Three Financial Statements - https://bit.ly/4322Ppr

12. The Chart of Accounts - https://lnkd.in/d5edWWnu

13. The 3 Financial Statements - https://bit.ly/3m0PGvO

 🎯Finance

1. The Accounting vs. Finance Cheat Sheet - https://bit.ly/3V4PzOI

2. The Financial Analysis Scorecard - https://lnkd.in/epjZdUYa

3. The 20 Most Confused Finance Topics - https://bit.ly/4c4gUXC

4. The 4 Steps to Assess Business Financial Health - https://lnkd.in/e4nCuD9h

5. The 25 Responsibilities of the CFO Office - https://lnkd.in/eN44rtU6

6. The Ten Drivers of shareholder value - https://bit.ly/40x3rRO

7. The 3 Main Cash Flow Drivers - https://lnkd.in/eqy9JNvN

8. The Debt vs. Equity Spectrum - https://lnkd.in/eF8Xk4yS

9. The 20 Management Analysis Tools - https://lnkd.in/eiw_XD3v

10. The 5 Financial Performance Metrics - https://lnkd.in/enF8WKFr

11. The Cash Inflows and Outflows - https://lnkd.in/e4TcWvRw

12. The Cash Flow Statement: Direct or Indirect - https://lnkd.in/e-NBhUG4

13. The CFO Office in the Organizational Chart - https://lnkd.in/eRu_-kxH

A big thank you to Anders Liu-Lindberg, Nicolas Boucher, Josh Aharonoff, CPA, Chris Reilly for contributing to this great collection!

Visit my digital store to check out my viral cheat sheets and checklists

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