Nicolas Boucher Online

Corporate Finance tailored workshops:
🤖 ChatGPT For Finance
📊 FP&A
💡 Finance for Non Finance

Keynote speaker
🤖 AI in Finance
🧑‍💻 Finance for Non Finance
📊 FP&A

✉️ More info: hello@nicolasboucher.online

Consulting:
📈 LinkedIn Growth
🤖 ChatGPT and AI implementation

✉️ More info: hello@nicolasboucher.online

Trainings for finance professionals individuals:
🤖 ChatGPT for Finance
https://nicolasboucher.gumroad.com/l/ChatGPT-For-Finance
📊 FP&A
https://nicolasboucher.online/course/

Founder / Corporate Finance Trainer / Keynote Speaker

Thales

As from 2022: Senior Manager Controlling for Ground Transportation Systems
Scope of responsibilities:
-Reporting business reviews to top management
-Involved in the strategic activities 
-Working in 3 languages (English, German and French)
-Budgeting and Forecasting activities
-Transversal role on commercial, R&D and project controlling
-Part of the carveout process

From 2018 to 2021: Head of Finance and Controlling for MIS Germany
Scope of responsibilities:
-Head of Finance for the Space Segment (Cross regional scope between Germany and France)
-Working in 3 languages (English, German and French)
-Leading a team of 8 controllers and accountants
-Member of the local management (production, engineering and R&D teams representing 400 employees) 
-Involved in the strategy and bids activities 
-Strong focus on commercial, industrial and budget controlling
-Led significant cost reduction activities
-Reorganised the Finance & Controlling team (reduction of the team size, use of shared services, optimisation of processes)

Senior Manager Controlling / Head of Finance & Controlling

Managed the Finance Transformation initiatives for Thales Germany which consisted mainly of:
-Organisational changes
-Implementation of a business intelligence tool
-Harmonization of Financial Information Systems and Processes
-People development

In addition, I performed ad hoc missions such as budgeting and controlling, transfer pricing documentation and internal control documentation.

Head of Finance Transformation Thales Deutschland GmbH & Senior Manager Finance & Controlling

PwC Luxembourg

1) Audit of Insurance and Reinsurance top tier companies (70% of portfolio), exposed to other industries (Investment fund, holdings and commercial companies)
-	Supervision of audits under IFRS and Luxembourg GAAP (statutory and consolidation)
-	Proposal writing for new key clients and fee negotiation for recurring jobs
-	Building and maintaining valuable relationships with clients by understanding and offering solutions
-	Production and presentation of board papers, executive summaries and memos
2) Consulting and advisory
-	Regulatory gap analysis for an international Reinsurer
-	IT roadmap and study on distribution needs for a Life Insurer
-	International expansion study for a Life Insurance IT provider
3) Internal projects
-	PMO for the Insurance industry leader (help on business plan, strategy to action plan, coordination)
-	Conduct and organize key meetings with different lines of services (audit, tax, advisory, IT)
-	Regular update on regulatory matters and market topics
-	Participation to key human resources steps as reviewer for juniors (objectives, validation of probation period, evaluation committee and annual review)
-	Instructor for training

Manager - Financial Audit

PwC Singapore

Audit of Insurance and Reinsurance top tier companies
-	Manager in charge on 80% of my portfolio
-	Supervise, schedule, conduct and organize audits under IFRS (statutory and consolidation)
-	Project management: budgeting, tasks allocation, planning, monitoring
-       Build and maintain valuable relationship with our clients by understanding, offering solutions, and providing value
-	Coaching and team management in order to deliver high quality work in respect of the deadlines
-	Production and review of deliverables (Financial Statements and management letters)
-	Involved in advisory jobs and internal projects

Assistant Manager - Financial Audit

Audit of Insurance and Reinsurance companies (Axa, La Luxembourgeoise and New PEL Group all of them part of the Top10 Luxemburgish Insurance sector), Investment Funds (assets under management up to USD 40 billion : Amundi, Bluebay, Wellington, Platinum Trust, Genesis) and Holdings (Finmeccanica)
-	Schedule, conduct and organize audits of full complexity for conformity with policies and procedures of company under Luxembourg GAAP and IFRS (consolidated accounts)
-	Coaching and team management in order to deliver high quality work in respect of the deadlines
-	Production and review of deliverables (Financial Statements and management letters)
-	Involved in advisory jobs and internal projects
-	Education program of certified public accountant of Luxembourg (“IRE”)

Senior Financial Auditor

Group Reporting Department
-Analysis and control of financial statements sent by the subsidiaries, monthly for management figures and annually for forecasts
-Key Performance Indicators : Income Statement, EBITDA, Cash flow Statement, Balance Sheet
-Management of the Information System for reporting and consolidation (Magnitude)

Financial Controller

I help Finance professionals boost their career in FP&A, Controlling and Finance.

Contact me if you want to learn ChatGPT for your finance team and/or yourself
(Team workshop or individual training available).
✉️ hello@nicolasboucher.online

About me:

Finance Thought Leader, trained more than 3,000 people and on a mission to help more than 1 million finance professionals.

I teach finance people how to use ChatGPT, how to move to FP&A and how to accelerate their career.

You can also book me as a keynote speaker.


My previous roles:

🏭 Thales (Germany):
2022-23: Senior manager controlling role for the Transportation business (€500 million business)
2018-22: Part of the management and led the Finance and Controlling team of a production site (400 people) specialised in producing Traveling Waves Tubes for Satellites
2016-2018: Head of Finance Transformation

👨‍💻 PwC:
2014-2016: Audit Manager in PwC Luxembourg
2012-2014: Audit Manager in PwC Singapore
2009-2012: Auditor in PwC Luxembourg


My experience:

Living in 5 different countries across 3 different continents (France, USA, Luxembourg, Singapore and Germany) gave me the capacity to integrate myself quickly and understand different local and working cultures.

Worked 8 years for Thales, an engineering and industrial french multinational.
I had finance manager roles and was part of the management of a 400 people production site.

Prior to that, I worked 7 years as an auditor and consultant for PwC in Luxembourg and Singapore.


My private life:

I am married and a happy father of two young daughters. We both learn from each other and we enjoy reading french books together and play outside.
When I am not busy with my daughters, I am exercising, cooking and spending quality time with friends.
Finally, traveling and tasting new food are some of my favorite experiences. But if you ask me where is the most beautiful place and where can we find the best food in the world, I have only one response: my hometown, Brittany in France.


My Specialties:

-Finance & accounting
-Controlling, budgeting & forecasts
-FP&A
-ChatGPT
-AI
-Storytelling
-Cross-cultural management, coaching and training
-Cost reduction
-Management
-Analytics, Business Performance and Activity Dashboard
-Audit & controls
-Business Processes Modelling
-Financial Statements and Cash Flow
-Business Intelligence
-Fluent in French (native speaker), English & German

Hashtags:
#finance #controlling #accounting #management #cfo #cash #budgeting #forecasting #chatgpt

https://nicolasboucher.online

100 Excel Tips

The best Shortcuts, Formulas, Formatting & Advanced Tips

Bookmark this, you'll save 1,000 of hours!

If you think you know well Excel, I bet you will still learn something new in the Advanced table (items 76 to 100).
______
💥 Black Friday Offer: Get all my courses at a 50% discount:
• ChatGPT Course: https://lnkd.in/dqNUkGD8
• FP&A, Budgeting & Storytelling course: https://lnkd.in/eGfmQFq7
• Powerpoint Guide: https://lnkd.in/ehrKB4nk
______

👉 How to get the High Resolution PDF?
Give a like and then download it here: https://lnkd.in/ewSkr3xN

What do we cover?

A list of tips that all professionals need.

Here is a preview:

⌨️ Shortcuts

1. How to hide a column?
Ctrl + 0

2. How to hide a row?
Ctrl + 9

3. How to autosum adjacent cells?
Alt + =

4. How to start a new line in cell?
Alt + Enter

5. How to insert a new worksheet?
Shift + F11

(get the answers 6-25 in the Cheat Sheet below)


🔢 Formulas

26. How to sum a range of cells?
=SUM(range)

27. How to find an average of numbers?
=AVERAGE(range)

28. How to find the maximum value in a range?
=MAX(range)

29. How to find the minimum value in a range?
=MIN(range)

30. How to link cells from different sheets?
='SheetName'!CellReference

(get the answers 31-50 in the Cheat Sheet below)


📊 Formatting

51. How to change cell color?
Home > Fill Color

52. How to apply bold text?
Home > Bold or Ctrl+B

53. How to insert a border around cells?
Home > Borders > All Borders

54. How to format a number as currency?
Home > Number Format > Currency

55. How to align text to the center of a cell?
Home > Alignment > Center

(get the answers 56-75 in the Cheat Sheet below)


⚡️ Advanced

76. How to remove duplicate rows?
Data > Remove Duplicates

77. How to create a data validation list?
Data > Data Validation > List

78. How to find outliers in a list?
Calculate the Z score of each cell =Z.TEST(array, x, [sigma])

79. How to look up data using INDEX and MATCH?
=INDEX(return_range, MATCH(lookup_value, lookup_range, 0))

80. How to create a named range?
Formulas > Name Manager > New Name

(get the answers 81-100 in the Cheat Sheet below)


👉 What else would you add?
👉 Did you learn something?

P.S.: like and comment to help spread this cheat sheet.
And follow me to get my next Cheat Sheets.

Nicolas Boucher

How to learn AI?

I spend 2 to 3 hours everyday researching how AI can help Finance.

My sources?

LinkedIn
Twitter
Youtube
Tiktok
Newsletters

If you don't have the time to invest 2 to 3 hours everyday but still want to stay informed and stay ahead of the competition, I am here to help.

In 2 weeks I am launching a service which helps you take advantage of my work and save time while still understanding:
- How AI can be implemented in Finance Processes
- Which AI tools should you use
- How to use ChatGPT

I also want to bring the best experts for an exclusive monthly live masterclass.

If you are interested and want to join the waiting list, just click here:
https://lnkd.in/eQyz3J3p

Why was Sam Altman fired?

An infographic to understand the complex dynamic of OpenAI

Here is what happened:

Sam Altman was fired by four members of the board of directors:

Ilya Sutskever
Current Role: Co-founder and Chief Scientist at OpenAI.

Adam D'Angelo
Current Role: CEO of Quora and an Independent Director on the Board of Directors at OpenAI.

Tasha McCauley
Current Role: Technology entrepreneur and an Independent Director on the Board of Directors at OpenAI.

Helen Toner
Current Role: Director of Strategy and Foundational Research Grants at Georgetown’s Center for Security and Emerging Technology (CSET) and an Independent Director on the Board of Directors at OpenAI.

Following this decision, Greg Brockman, the ex-president and co-founder of OpenAI quit as a sign of support with Sam Altman.

What are the dynamics involved?

The main reason appears to be Sam Atlman's commercially oriented vision for OpenAI which breaks with the initial goal of OpenAI and the vision of the four other directors.

As OpenAI moved quickly on Enterprise and GPTs marketplace, the trajectory to become one of the top commercial tech company was traced.

It might be that these commercial decisions were done without an agreement from the board and therefore created this conflict between the 4 remaining members of the board and Sam Altman.

The new CEO is for now Mira Murati as a sign to come back to the main goal of OpenAI: becoming the lead research and scientific driver for AI.

I also added for you a structure of the OpenAI organisation.

Microsoft invested $10 billion in the capped profit organisation of OpenAI.

Microsoft is getting 75 percent of OpenAI’s profits until it recoups its investment, after which it would have a 49 percent stake in the company.

🙏 I have spent a lot of hours doing the research on this.
Please share, like and comment to show your appreciation!

I teach Finance Teams how to use ChatGPT - Keynote speaker on AI for Finance & FP&A

10 tactics to control costs

A guide which provides you the tools for cost reduction

When I was head of finance, we were facing a challenge:
→ How to reduce our hourly rate to stay competitive

This became my number one priority to help the business

And we succeeded to decrease our hourly rate by 3% while inflation was up!

Today I am sharing the tactics to reduce costs:

1. Budgeting and Forecasting:

• Importance: Plan and estimate costs, revenue, and expenses.
This is where you can get your team to commit on cost reduction.
• Focus: Use accurate data and update budgets regularly.


2. Variance Analysis:

• Importance: Compare actual performance with budgets to identify deviations.
If you found a variation, there is a big chance that you have a topic to explore to reduce costs.
• Focus: Investigate significant variances for improved accuracy.


3. Cost Allocation:

• Importance: Distribute indirect costs for accurate pricing and control.
• Focus: Maintain fair and updated allocation methods.


4. Activity-Based Costing:

• Importance: Assign costs to specific activities for better resource allocation.
• Focus: Identify and measure cost-driving activities accurately.


5. Zero-Based Budgeting:

• Importance: Justify every expense to optimize resource allocation.
• Focus: Balance rigor with operational continuity.


6. Cost-Benefit Analysis:

• Importance: Compare project costs with expected benefits.
• Focus: Consider tangible and intangible factors.


7. Cost-Volume-Profit Analysis:

• Importance: Understand how sales, costs, and pricing impact profitability.
• Focus: Validate fixed and variable cost assumptions.


8. Inventory Management:

• Importance: Optimize inventory levels to reduce costs.
• Focus: Use EOQ and JIT techniques for efficiency.


9. Vendor Management:

• Importance: Evaluate and maintain supplier relationships.
• Focus: Assess performance and diversify suppliers.


10. Procurement Management:

• Importance: Acquire goods at the best cost with quality.
• Focus: Establish clear procurement processes and collaboration.


👉 What is your favorite method to find cost reductions?

****

🤖 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

📊 Master PowerPoint to be more productive and impress your boss.
Get the only PowerPoint guide for Finance Professionals.
https://lnkd.in/ehrKB4nk 

50 Finance KPIs

The most extensive list of Finance KPIs.

//Comment if you want the link to the high resolution PDF//

What is inside?

➡ 10 Accounting KPIs
Accounts Receivable Turnover
Accounts Payable Turnover
Working Capital Ratio
Debt-to-Equity Ratio
Gross Profit Margin
Net Profit Margin
Return on Assets (ROA)
Return on Equity (ROE)
Inventory Turnover
Fixed Asset Turnover

➡ 10 Cash KPIs
Cash Burn Rate
Average Days Delinquent (ADD)
Operating Cash Flow (OCF)
Free Cash Flow (FCF)
Overdues Ratio
Days of Inventory Outstanding (DIO)
Days Sales Outstanding (DSO)
Days Payables Outstanding (DPO)
Cash Conversion Cycle (CCC)
Cash Reserves in Days

➡ 10 SaaS KPIs
Customer Churn Rate
New Buyer Growth Rate
Lifetime Value
Customer Acquisition Costs
Net Burn rate
Runway
Average Revenue Per User (ARPU)
SaaS Quick Ratio
Monthly Recurring Revenue (MRR)
Total Addressable Market (TAM)

➡ 10 Inventory KPIs
Average Inventory
Days on Hand
Stock to Sales Ratio
Cost of Carry
Backorder Rate
Sell-through Rate
Scrap rate
Time to receive
Inventory shrinkage
Dead Stock

➡ 10 Investors KPIs
Return on Investment (ROI)
Return on Equity (ROE)
Earnings per Share (EPS)
Price-to-Earnings Ratio (P/E)
Dividend Yield
Debt-to-Equity Ratio
Current Ratio
Quick Ratio
Gross Margin Ratio
Net Promoter Score (NPS)

***

This document serves as a catalog of KPIs from which you can pick.

My recommendation: study these KPIs and select two or three which are relevant to your business.

👉 Let me know in the comments which one is your favorite KPI?

🙏 Please help this post getting spread around.
Every like or comment you give is a way to help other people seeing this KPIs catalog.

Finance Cheat Sheet

A full Finance Book in one page

🙏 Help me spread this free Cheat Sheet: like, share and comment!

Here is what is inside:

• 90 KPIs
-Accounting KPIs
-Cash KPIs
-Balance Sheet KPIs
-SaaS KPIs
-Capex KPIs
-CEO KPIs
-Headcount KPIs
-Manufacturing KPIs
-Inventory KPIs

• Finance Organisation Chart

• FP&A Methods & Skills

• Financial terms explained to non finance people

• How to reduce costs

• Cash conversion cycle

• Budget process

• PVM Analysis

• Valuation techniques


My goal with this cheat sheet is to spread the finance knowledge.

Now i have a favor to ask you.

Help me spread this Cheat Sheet.

How ?

By liking or commenting you will help other people see this post.

Spreading this message means that more people can learn and use this Cheat Sheet.

Tell me what is your favorite part!

50 Finance KPIs

The most extensive list of Finance KPIs.

It takes us a lot of work to make these KPIs infographic remarkable.
If you want the high resolution we can give it away.
Just tell us in the comment if you want it.

So What is inside?

➡ 10 Accounting KPIs
Accounts Receivable Turnover
Accounts Payable Turnover
Working Capital Ratio
Debt-to-Equity Ratio
Gross Profit Margin
Net Profit Margin
Return on Assets (ROA)
Return on Equity (ROE)
Inventory Turnover
Fixed Asset Turnover

➡ 10 Cash KPIs
Cash Burn Rate
Average Days Delinquent (ADD)
Operating Cash Flow (OCF)
Free Cash Flow (FCF)
Overdues Ratio
Days of Inventory Outstanding (DIO)
Days Sales Outstanding (DSO)
Days Payables Outstanding (DPO)
Cash Conversion Cycle (CCC)
Cash Reserves in Days

➡ 10 SaaS KPIs
Customer Churn Rate
New Buyer Growth Rate
Lifetime Value
Customer Acquisition Costs
Net Burn rate
Runway
Average Revenue Per User (ARPU)
SaaS Quick Ratio
Monthly Recurring Revenue (MRR)
Total Addressable Market (TAM)

➡ 10 Inventory KPIs
Average Inventory
Days on Hand
Stock to Sales Ratio
Cost of Carry
Backorder Rate
Sell-through Rate
Scrap rate
Time to receive
Inventory shrinkage
Dead Stock

➡ 10 Investors KPIs
Return on Investment (ROI)
Return on Equity (ROE)
Earnings per Share (EPS)
Price-to-Earnings Ratio (P/E)
Dividend Yield
Debt-to-Equity Ratio
Current Ratio
Quick Ratio
Gross Margin Ratio
Net Promoter Score (NPS)

***

This document serves as a catalog of KPIs from which you can pick.

My recommendation: study these KPIs and select two or three which are relevant to your business.

👉 Let me know in the comments which one is your favorite KPI?

🙏 Please help this post getting spread around.
Every like or comment you give is a way to help other people seeing this KPIs catalog.

Budgeting Checklist

You are working on the budget?

Get this checklist to organize your budget process.

🔗 Download it here: https://lnkd.in/edvf5exs

Here is what is inside:

1️⃣ Preparation & Planning

🔲 Understand management's expectations concerning growth, strategy & profitability
🔲 Set clear financial goals and differentiate between short and long-term objectives
🔲 Establish a structured approach for managing the budget process (deadlines, owners)
🔲 Ensure that budgeting activities align with the organization’s overarching goals and priorities

Tip: you can use ChatGPT to draft your budget instructions or budget memo.
If you want to learn how to use ChatGPT for Finance, you can learn it here: https://lnkd.in/e8RGdYsK

2️⃣ Sales Planning

🔲 Choose an appropriate method for sales planning
🔲 Detail your budget sufficiently for effective analysis
🔲 Consider external factors like market trends, economic conditions impacting the business
🔲 Ensure accurate phasing of the sales plan
🔲 Conduct 'what-if' analysis to understand impacts on resources and profitability

3️⃣ Operational & Resource Planning

🔲 Plan for production, delivery, and workload
🔲 Account for direct headcounts & determine capacity
🔲 Determine material needs and plan for necessary investments
🔲 Collaborate with cross-functional teams to develop a comprehensive operational plan

4️⃣ Costing & Overhead Planning

🔲 Compute standard costs: direct labor, material costs, and manufacturing overhead allocation
🔲 Budget for individual departments and allocate overhead costs accordingly

5️⃣ Financial Statements & Reporting

🔲 Translate the budget into key financial statements: Income Statement, Balance Sheet, & Cash Flow
🔲 Establish a structured reporting process to communicate budget-related information to stakeholders
🔲 Create a visual budget performance dashboard to quickly assess the financial performance

6️⃣ Monitoring & Analysis

🔲 Regularly monitor and analyze budget variances to identify deviations
🔲 Perform sensitivity analysis to understand potential impacts on the budget
🔲 Leverage financial data analysis tools to identify trends, patterns, and opportunities for improvement

7️⃣ Communication & Collaboration

🔲 Foster open communication and shared financial goals in relationships, both internally and externally
🔲 Engage with stakeholders from different departments to gather valuable insights
🔲 Develop and communicate clear budgeting policies and procedures

8️⃣ Final Review & Implementation

🔲 Review the budget for any inconsistencies or errors
🔲 Communicate the finalized budget to all relevant departments and ensure its implementation


👉 Did I miss anything?

Get this checklist to organize your budget process.
Link below in comments.

Top 100 Finance Tips

Learn Accounting / Excel / KPIs / Cash

Bookmark this, you'll save 1,000 of hours!

👉 Follow, Like and Comment to get the High Resolution PDF
Then download it here: https://lnkd.in/eAVzrrxb

What do we cover?

A list of tips that all Finance Pros need.

I am curious to know which one is your favoritee

Here is a preview:

💹 Accounting
1. How is the accrual principle applied?
→ Records revenues & expenses when earned/incurred

2. How does the consistency principle work?
→ Use same methods every accounting period

3. How is the matching principle used?
→ Match expenses with revenues of same period

4. How does the cost principle function?
→ Record assets at cost paid, not current value

5. How is the monetary unit assumption applied?
→ Record only quantifiable transactions

(get the answers 6-25 in the Cheat Sheet below)


📊 Excel

26. How to calculate NPV in Excel?
→ Use =NPV(rate, value1, [value2], ...)

27. How to compute IRR in Excel?
→ Use =IRR(values, [guess])

28. How to find present value in Excel?
→ Use =PV(rate, nper, pmt, [fv], [type])

29. How to calculate a bond's yield in Excel?
→ Use =YIELD(settlement, maturity, rate, pr, redemption, frequency)

30. How to use PMT function in Excel?
→ Use =PMT(rate, nper, pv, [fv], [type]) for loan payments

(get the answers 31-50 in the Cheat Sheet below)


🔑 KPIs

51. How to measure profitability?
→ Use net profit margin: Net Profit / Revenue

52. ​How to gauge liquidity?
→ Calculate current ratio: Current Assets / Current Liabilities​

53. How to assess debt burden?
→ Compute debt-to-equity ratio: Total Debt / Total Equity​

54. How to track asset efficiency?
→ Calculate asset turnover: Sales / Total Assets​

55. How to evaluate investment returns?
→ Use return on investment (ROI)

Formulas 51-54 corrected (and updated correctly in PDF)

(get the answers 56-75 in the Cheat Sheet below)


💵 Cash

76. How to forecast cash flow?
→ Use historical data and project future receipts/payments

77. How to improve cash position?
→ Speed up receivables, slow down payables

78. How to calculate cash conversion cycle?
→ DSO + DIO - DPO

79. How to manage short-term cash surplus?
→ Invest in short-term liquid securities

80. How to measure liquidity?
→ Use quick ratio: Liquid Assets​ / Current Liabilities (corrected and is updated in PDF)

(get the answers 81-100 in the Cheat Sheet below)


👉 What else would you add?
👉 Let me know if you want more explanations.

CFO explained to Kids

Explanations for kids... and adults!

How do you present a CFO to your kids?

As a Financial superhero or a numbers wizard?

🦸‍♂️ What is a CFO?

CFO stands for Chief Financial Officer

A CFO is a high-ranking executive who is responsible for managing a company's finances.

They work closely with other executives and managers to develop and implement financial strategies that help the company grow and succeed.


💼 What does a CFO do?

A CFO is responsible for a wide range of financial activities, including:

• Financial planning and analysis
• Budgeting and forecasting
• Treasury management
• Financial reporting
• Risk management
• Investor relations

🔍 How does a CFO help a company?

A CFO helps a company by ensuring that it has the financial resources it needs to grow and succeed.

They work to identify areas where the company can improve its financial performance, and develop strategies to increase revenue, reduce costs, and improve profitability.

They also help to manage the company's risks, by identifying potential financial risks and developing plans to mitigate them.


🤔 How is a CFO different from an accountant?

While both accountants and CFOs work with financial data, their roles are different.

An accountant is responsible for preparing and maintaining financial records, while a CFO is responsible for developing financial strategies and managing the company's finances to help it grow and succeed.

Think of an accountant as a scribe, and a CFO as a strategic advisor.


🎓 Why is the role of CFO important?

The role of a CFO is important because it helps a company to make informed financial decisions that will help it grow and succeed.

By working closely with other executives and managers, a CFO can help to identify areas where the company can improve its financial performance, and develop strategies to achieve those goals.

In short, a CFO is a financial superhero who helps to ensure that a company has the resources it needs to succeed.


👉 Would you say to your kids that the CFO is a:
Financial superhero?
or
Numbers wizard?


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 😉)

- - - 

✉️ You are a CFO or a Finance Manager?

You want to learn ChatGPT for Finance?

I am here to help you.

I created a free course "ChatGPT for CFOs".
It's a 5 day email course.

Enroll today and you will get your first lesson tomorrow!

Here is your exclusive access (it's free): https://lnkd.in/eRGreWUi

The Finance Function


Ever wanted to know how the finance organisation works?

Here is a simplified organisation chart view.

Read below what are the responsibility of each team:

1. FP&A Team:

💼 Commercial Analysis:
Analyze and plan commercial activities

🏭 Industry Analysis:
Analyze industrial variances and plan standard costs

📊 Business Analysis:
Analyze general business data to support business decision-making
Can also be responsible for reporting


2. Accounting Team:

💳 Accounts Payable:
Process invoices and payments to vendors and suppliers

💰 Accounts Receivable:
Track and collect payments from customers

📄 General Ledger:
Maintain financial records and prepare financial statements


3. Treasury Team:

💰 Cash Management:
Manage cash balances and ensure adequate liquidity

💸 Debt Management:
Manage debt portfolio and ensure compliance with covenants

💱 Foreign Exchange:
Manage exposure to foreign exchange risks


4. Tax Team:

💼 Corporate Tax:
Prepare and file income tax returns

💸 Indirect Tax:
Manage sales, use tax, VAT, and other indirect taxes

🌍 Transfer Pricing:
Ensure compliance with transfer pricing regulations


👉 Did I miss any finance role?

-----------------------------------------

🤖 Get the only available ChatGPT for Finance course.
Start learning ChatGPT this week end and use it to make yourself more productive for your finance job.
You only need 2 hours to learn it!
https://lnkd.in/dqNUkGD8

BREAKING: Sam Altman is joining Microsoft!

Do you think this is a good decision?

Satya Nadella, the CEO of Microsoft just announced it today.

Sam Altman will join as CEO of the advanced AI research team, together with Greg Brockman and other ex-OpenAI colleagues who are leaving OpenAI to join Sam Altman.

See below the copy of Satya Nadella's post and his comment from 1 hour ago.

👉 Let us know in the comment what is your reaction on this news

Understand Your Profit

For Finance & Non Finance Pros

Your Net Income derives from many components:

Sales
 - less COGS (Costs of Good Sold)
= Margin
 - less Operating expenses
= Operating Income
- less Non-Operating expenses
= Net Income

Use 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 / FTE

Return on Equity: measures return on investment for shareholders
% Income: measures how much profit we could retain for each $1 sales
Profit per FTE: measures how much profit each FTE can generate

Note:
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?

Why AI is going to change your job?

Studies from Harvard and BCG demonstrated AI improved productivity.

On 18 realistic consulting tasks, using AI made consultants more productive.

They completed 12.2% more tasks on average, and completed tasks 25.1% more quickly.

More important: quality increased!

The output had 40% higher quality compared to a control group.

What does it tell us?

AI will change our jobs.

But how do you stay updated?

I surveyed 700 finance professionals about AI and here are their 5 main concerns:

1. Lack of Understanding or Knowledge
2. Want to Know How to implement AI in Finance
3. How to the Right Tools and Resources
4. Time and Resource Constraints
5. Concerns About Relevance and Applicability

After training more than 3,000 finance pros on AI, I wanted to find a way to have a continuous delivery of knowledge.

Where I could keep updating you and my other students about the AI developments.

And train you on new AI functionalities and new tools.

But most importantly show you how you can use AI in your finance processes.

This is why I created a new solution: the AI Finance Club.

It's not only a LinkedIn Page.

This is a service where if you subscribe, you will receive per email over the course of a year:

12 In-Depth Reviews by email
12 Insightful Digests by email
12 Practical Mini-Courses by email and video
12 Comprehensive Deep Dives by email

And you will be invited to one masterclass per month (12 masterclass in total) where I will invite experts to teach you how to use AI in your Finance processes.

If you want to be one of the first the join, add yourself to the waiting list here:
https://lnkd.in/eQyz3J3p

Let me know in the comments if you want to join!


5 Depreciation Methods

Learn which one to use (bookmark this for future use)

1️⃣ Straight-line Depreciation

This is the simplest and most common method of depreciation. Under this method, the cost of an asset is spread evenly over its useful life.

Formula: (Cost of Asset - Salvage Value) / Useful Life.

Example: Allocate the cost of a computer evenly over its 5-year lifespan.


2️⃣ Double-Declining Balance Depreciation

This method results in a higher depreciation expense in the early years of an asset's useful life and a lower expense in later years.

Formula: Book Value x 2 / Useful Life.

Example: Assign a higher portion of the cost of a smartphone in the early years due to rapid technological advancements.

3️⃣ Sum of the Year's Digits Depreciation

This method is based on the assumption that assets depreciate more quickly in their early years.
Ex: Sum of the year = 1 + 2 + 3 + 4 + 5 = 15 if you have 5 years lifetime.

Formula: (Cost of Asset - Salvage Value) x (Remaining Useful Life / Sum of the Years' Digits).

Example: Allocate greater depreciation expense in the first few years of a delivery vehicle's life due to higher usage and wear.


4️⃣ Units-of-Production Depreciation

This is method is based on the assumption that an asset's useful life is determined by the number of units it produces.

Formula: (Cost of Asset - Salvage Value) / Total Units of Production x Units Produced in Current Year.

Example: Allocate depreciation based on the number of units produced or hours of operation for manufacturing machinery.


5️⃣ Revaluation Depreciation

Adjusts the asset's value periodically based on its current market value.

Formula: If Book value > Market value, depreciation = Market value - Book value

Example: A company revalues its commercial property from $1-5 million to $1 million to reflect the property's current market value.


👉 Did you know all of them?
👉 Which one do you prefer?

-----------------------------

🤖 Don’t let robots take over your finance job.
Instead, leverage AI to boost your career and become irreplaceable.
How? Start learning ChatGPT for Finance today.
https://lnkd.in/e8RGdYsK

10 KPIs for CFO Dashboards

Create a dashboard for your CFO and you will make their life easier.

Here are the 10 KPIs you can select as part of your CFO Dashboard.

Select only a few as too many KPIs kill the KPIs!

1. Revenue growth
How much more you sold goods, products, or services vs last period
Formula: Revenue period / Revenue previous period

2. Gross margin percentage
Gross margin is calculated using Revenue less Costs Of Good Solds.
Formula: (Revenue - COGS) / Revenue

3. Variances
This helps see how behave your costs vs your budgeted costs. Perfect to analyse your product costing and departmental costing.
Formula: Standard costs - Actual costs

4. Overhead rate
Costs not directly linked to the production of goods or services, but are necessary for the operation of a business. For example: general management costs.
Formula: Overhead costs / Revenue

5. EBIT
Earnings Before Interest and Taxes. It measures the profitability of the company from operations without the impact of interest and taxes.
Formula: Net Income + Interest + Taxes (or also: Revenue – COGS – Operating Expenses)

6. Operating Cash Flow (OCF)
Money generated by daily operations
Formula: Net Income + Non-Cash Expenses – Increase in Working Capital

7. WCR
Working Capital Requirement measures the need for financing the operational activities of a company for all short term operations.
Formula: Inventory + Receivables - Current Liabilities

8. Full Time Equivalent (FTE)
1 FTE equivalent of a standard working hours contract. Example: a part time at 50% = 0,5 FTE
Formula: Number of hours in the employee contract / Standard working hours

9. Overdues
Invoices due by clients but not paid. It’s key to track the ageing of overdue. The older it gets, the higher the risk is to not getting paid.
Formula: Total Amount of Customer Invoices due but not paid

10. Cash Burn Rate
Net Cash spent by a company in a specific time frame (usually monthly or normalized to a year)
Formula: Cash Spent (monthly average) - Cash Received (monthly average)


Bonus Tips: 
-For each KPI, round values it in thousands or millions based on the size of your organisation

-Show the comparison in % vs budget and/or actuals from previous year or previous period.

-Add an indication of forecast for next month to be able to signal any issue to work on immediately


👉 Which other KPI would you include?

-----------------------------------------

🤖 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
(Special launch offer for my video course)


📊 Master Powerpoint to be more productive and impress your boss.
Get the only Powerpoint guide for Finance Professionals.
https://lnkd.in/ehrKB4nk

Tax Metrics

How to measure your tax team’s performance?

During my time as an auditor and with my experience in a multinational company, I understood how important is tax.

A few weeks ago, somebody asked me how a Tax department should measure their performance.

Here are the top 10 metrics that every CFO and tax team should follow:

1️⃣ Effective Tax Rate (ETR)

Average rate at which your company's pre-tax profits are taxed.

It can indicate how efficient your tax planning is.


2️⃣ Tax Gap

Measures the difference between the taxes that are owed and the taxes that are paid.

It's a great way to understand compliance within your organization.


3️⃣ Tax Return Accuracy

Percentage of tax returns filed without errors.

High accuracy can help you avoid penalties and audits.


4️⃣ Cost of Tax Management

This includes all costs associated with managing tax obligations, like personnel, software, and consulting fees.

It's all about optimizing costs while maintaining compliance and accuracy.


5️⃣ Time to Close

This metric gauges the number of days from the end of a fiscal period to when the tax provision is completed.

The shorter the time, the more efficient your tax department is.


6️⃣ Deferred Tax Assets & Liabilities

These reflect the future tax impact of transactions your company has already entered into.

It's important for understanding future tax obligations and potential benefits.


7️⃣ Tax Savings

This metric quantifies the savings achieved through tax planning strategies.

It's a clear measure of the success of your tax department's planning and strategy.


8️⃣ Tax Audit Results

Always keep track of the outcome of any tax audits, including any fines or penalties.

Frequent audits or penalties might be a sign that you need to improve compliance processes.


9️⃣ Unrecognized Tax Benefits

These are benefits from tax positions that your company has taken, or expects to take, on a tax return, but they haven't been recognized in the financial statements due to uncertainty.

As they are not shown in the Financial statements, it's crucial to keep an eye on them.


🔟 Tax Risk Exposure

This is a measure of potential financial risk related to tax, like potential changes in tax laws or potential issues with transfer pricing.

Proactive management of tax-related risks can make you save a lot of money and trouble!


👉 Which one is the best?

CRIME
⇢ The perfect internal control framework

In business, Finance is the guardian of the temple

To guard this temple, you need an internal control framework

How?

Remember these 5 letters:

Control activities
Risk assessment
Information & technology
Monitoring activities
Environment

C - Control Activities:

Implement effective controls to prevent errors and fraud.

• Review and update control activities regularly.
• Monitor control effectiveness.
• Train employees on control importance and procedures.


R - Risk Assessment:

Identify potential areas of risk for the business.

• Conduct regular risk assessments.
• Develop and implement risk mitigation plans.
• Continually monitor and adjust for new risks.


I - Information and Communication:

Transparent communication helps maintain control integrity.

• Establish open communication channels.
• Regularly communicate control changes and results.
• Encourage feedback and reporting of control issues.


M - Monitoring Activities:

Continual review of the control environment is key.

• Schedule regular control audits.
• Analyze and act on audit findings.
• Update controls based on monitoring activities.


E - Environment (Control Environment):

A strong control environment sets the tone for the organization.

• Foster an ethical and control-minded culture.
• Establish clear expectations for controls.
• Reinforce control environment through management behavior.

👉 Did I miss anything?
👉 How do you train people on internal controls?
👉 How much are you involved with internal controls?

Remember, to avoid Financial Crimes... use the C.R.I.M.E framework 😉

-----------------------------------------

🤖 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

📊 Master Powerpoint to be more productive and impress your boss.
Get the only Powerpoint guide for Finance Professionals.
https://lnkd.in/ehrKB4nk

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