Nicolas Boucher on LinkedIn: Top 10 CASH KPIs 1/ Cash Burn Rate Description: Net Cash spent by a… | 19 comments (2024)

Today I asked ChatGPT the following question:“Why should a company look to lease equipment or buildings?”This was the response I received within 2-3 seconds:“Even profitable companies may choose to lease equipment or buildings for several reasons:1. Preserving capital: Leasing allows a company to conserve its capital for other strategic initiatives or investments. By avoiding a large upfront purchase, the company can allocate funds towards business expansion, marketing efforts, research and development, or other areas that may contribute to future growth.2. Flexibility and scalability: Leasing provides flexibility in adapting to changing business needs. Companies that anticipate growth or fluctuations in their operations may prefer leasing to avoid being locked into long-term ownership. Leasing allows for easier upgrades or adjustments as business requirements evolve.3. Tax advantages: Lease payments are often considered operating expenses and can be tax-deductible, providing potential tax benefits for the company. This can help reduce the overall tax burden and improve cash flow.4. Maintenance and support: Lease agreements may include maintenance and support services from the lessor. This relieves the company from the responsibilities and costs associated with equipment maintenance, repairs, and upgrades, allowing them to focus on core business activities. (may or may not be applicable) 5. Access to specialized equipment or locations: Leasing can grant access to high-end or specialized equipment that may be costly to purchase outright. Similarly, leasing can provide access to prime locations or real estate properties that would otherwise require significant upfront capital.6. Risk management: Leasing can mitigate the risks associated with ownership, such as depreciation and obsolescence. Companies can offload the burden of disposing of outdated equipment or dealing with changing market conditions by opting for lease agreements with built-in upgrade or return options.Ultimately, the decision to lease equipment or buildings should be based on a thorough analysis of the company's financial situation, long-term goals, and specific operational requirements. It's advisable to assess the costs, benefits, and terms of leasing agreements and compare them to the potential advantages and drawbacks of ownership.”________________________________________Will be interesting to see the growth and future of artificial intelligence and how it will shape the future.

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𝐔𝐧𝐥𝐨𝐜𝐤𝐢𝐧𝐠 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐖𝐢𝐬𝐝𝐨𝐦 𝐰𝐢𝐭𝐡 𝐂𝐡𝐚𝐭𝐆𝐏𝐓 🚀📊Have you explored the world of ChatGPT within the finance sector? 🤔 If you've briefly dabbled and then stepped back, thinking it's not for you, it's time for a second look. Let me share why embracing ChatGPT could revolutionize your approach to finance, based on my firsthand experiences over the past year. Here's why we all should be the forerunners in leveraging ChatGPT in finance:🔍 𝗜𝗻𝘀𝘁𝗮𝗻𝘁 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗜𝗻𝘀𝗶𝗴𝗵𝘁𝘀: With ChatGPT, access a vast repository of financial knowledge at your fingertips. From global economic theories to niche accounting practices, it's like having an expert by your side, ready to provide tailored advice for your unique challenges. 🌍💡📊 𝗖𝘂𝘀𝘁𝗼𝗺 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗔𝗻𝗮𝗹𝘆𝘀𝗶𝘀: Whether it's dissecting profit margins or interpreting complex datasets, ChatGPT offers personalized solutions that illuminate overlooked perspectives. I've unlocked new analytical methods for trend analysis, enhancing my decision-making process. 🧐📈✏️ 𝗦𝘁𝗿𝗲𝗮𝗺𝗹𝗶𝗻𝗲𝗱 𝗖𝗼𝗺𝗺𝘂𝗻𝗶𝗰𝗮𝘁𝗶𝗼𝗻: Drafting reports or emails can be daunting. ChatGPT transforms this process, helping articulate thoughts with precision, making complex financial concepts accessible and reports compelling. Say goodbye to writer's block and hello to efficiency! 📝💬🛠️ 𝗘𝗻𝗵𝗮𝗻𝗰𝗲𝗱 𝗧𝗼𝗼𝗹 𝗣𝗿𝗼𝗳𝗶𝗰𝗶𝗲𝗻𝗰𝘆: Struggle with Excel formulas or PowerPoint presentations? ChatGPT is your go-to guide, providing step-by-step instructions as if a tech-savvy colleague is right there with you, anytime, anywhere. 🖥️🔧🚀 𝗕𝗼𝗼𝘀𝘁𝗲𝗱 𝗣𝗿𝗼𝗱𝘂𝗰𝘁𝗶𝘃𝗶𝘁𝘆: Users report monumental gains in efficiency. A testament to this is a student of mine who streamlined an internal process, saving three hours of work. Imagine applying such time savings across multiple tasks! ⏳➡️🏆In a nutshell, ChatGPT in finance is not just a futuristic concept—it's a present-day ally that empowers us to navigate the financial landscape with more confidence, clarity, and creativity. Let's not just use ChatGPT; let's champion it in our financial endeavors for unparalleled growth and innovation 💼🌟Embrace the change, and let ChatGPT be your guide to a more informed, efficient, and innovative financial future💡🔝------------------Follow Surya Vajpeyi for more💜#india #creativity #investing #finance #innovation #future #linkedinforcreators #linkedinconnections #business #india #money #people #FinanceJourney #LearningFinance #FinanceCommunity #ChatGPT #FinanceInnovation #FinancialAnalysis #ProductivityHacks #TechnologyInFinance

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9 levers to improve CashGood Finance Professionals take care of their company's cash flows.Based on my experience, here are 9 levers you can use to make an impact:1️⃣ Sales:-Improve payment terms with clients (negotiate down payments and short payment terms)-Accelerate the lead time to close deals2️⃣ Procurement:-Avoid down payment-Push the payment terms as far as possible3️⃣ Project:-Compute cash balance of each project-Plan your cash in and cash out and monitor it4️⃣ Collection of overdues:-Automate the dunning process-Escalate significant issues to management & key account manager5️⃣ Inventory:-Monitor level of inventory against forecasted sales-Reduce lead time-Optimise stock buffer-Reduce delays6️⃣ Finance:-Automate reporting-Improve understanding of cash flow statements-Bring transparency to management-Escalate collection issues-Use factoring to accelerate cash payment from receivables7️⃣ Sales administration:-Optimise the process between a cash milestone achievement and the issuance of the debit note to your client8️⃣ Management:-Translate cash objectives in team & individual objectives-Put cash on the management reviews agenda-Follow up cash as KPI-Delay investments9️⃣ Culture:-Communicate, explain, repeat: it’s a culture shift👉 What would you add?-------------------🤖 Don’t let robots take over your job.Instead, leverage AI to boost your career and become irreplaceable.How? Start learning ChatGPT for Finance today.https://lnkd.in/e8RGdYsK🚀 Wanna move to FP&A? Get my course to boost your careerSpecial offer this weekend: if you get the course, you get the ChatGPT guide for free!https://lnkd.in/eGfmQFq7

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Really! Important levers to analyse cash flow.

A good read on cash flow improvement areas from Nicolas Boucher.

IMPORTANT TO READ.CASH-FLOW MANAGEMENT 👇

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9 levels to improve your Cash flow.

Understand Your ProfitFor Finance & Non Finance ProsYour Net Income derives from many components:Sales- less COGS (Costs of Good Sold)= Margin- less Operating expenses= Operating Income- less Non-Operating expenses= Net IncomeUse this visualisation to understand how your net income is calculated.Top 3 Profitability KPIs:- Return on Equity: Net Income / Equity- % Income: Net Income / Sales- Profit per FTE: Net Income / FTEReturn on Equity: measures return on investment for shareholders% Income: measures how much profit we could retain for each $1 salesProfit per FTE: measures how much profit each FTE can generateNote:Don‘t forget to check your cash conversion to make sure you are also generating cash*tip:Use a waterfall chart to understand how much of the sales remains as profit👉 Do you find it easier to understand with this visual?------🤖Get the number one ChatGPT for Finance Video Course• 2.5 hours of on-demand video• 92 Pages of PDF• 450+ prompts• Practical exercises• Taken by more than 1,000 peopleDon’t wait to take advantage of the unique winter offer!https://lnkd.in/e8RGdYsK

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Thought Leadership: The Power of Data Analytics in AccountingIn the era of digital transformation, data analytics has emerged as a valuable tool for CPAs, offering new perspectives and insights that go beyond traditional accounting methods. By leveraging data analytics, CPAs can enhance decision-making, optimize financial strategies, and provide more value to their clients.Data analytics allows CPAs to analyze large volumes of financial data and extract meaningful insights. These insights can help identify trends, detect anomalies, and predict future outcomes, enabling businesses to make informed financial decisions.Moreover, data analytics can enhance auditing processes by identifying potential risks and anomalies, ensuring more accurate and efficient audits. It can also streamline financial reporting and forecasting, providing businesses with more timely and relevant financial information.Furthermore, data analytics can provide insights into customer behavior and market trends, helping businesses to improve their performance and competitiveness.At ChatCPA, we leverage data analytics to provide our clients with deeper insights and more strategic advice. Our team of expert CPAs and AI-powered tools can analyze your business's financial data and provide actionable insights to help you achieve your financial goals. To learn more about how data analytics can transform your business's financial management, visit chatcpa.io. #cpa #chatcpa #chatgpt #ai #accounting #tax

The 3 Cash Flow Activities1. Operating Activities📄 Definition:This is where most of the cash comes from.It involves buying stocks, collect money from customerrs, payments to suppliers and employees.➕ Cash inflows:Money received from salesCommission & FeesMoney received from other incomesRoyaltiesSubventions➖ Cash outflows:Money paid for inventoriesMoney paid for expensesMoney paid for taxPayment to creditorsPayment of wages2. Investing Activities📄 Definition:Cash changes as a result of buying & selling / tangible fixed assets and any changes in investments.i.e Investing in shares from other companies.➕ Cash inflows:Money received from the sale of assetsFixed deposits maturingSale of InvestmentInterest receivedDividend received➖ Cash outflows:Acquisition of CAPEXBuying propertiesInvesting in fixed depositsPurchase of Investments3. Financing Activities📄 Definition:Cash changes as a result of obtaining financing and paying off loans/issuing of shares.➕ Cash inflows:Money received from issuing sharesMoney received from obtaining loans➖ Cash outflows:Money used for repaying loansCompany's stock repurchaseCash dividend👉 Tell me how you monitor your cash flow!-----------------------------------------🤖 ChatGPT For Finance Video course.Learn how pros are using ChatGPT to be 10x more productive and accelerate their career.https://lnkd.in/e8RGdYsK

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