Category: Bookkeeping

The Fed’s QT2 has morphed into a de facto Operation Twist as balance sheet operations withdraw a rising share of Treasury duration from markets – this has resulted from the intersection of the Treasury’s T-Bill heavy issuance and the composition of maturing SOMA holdings that have been reinvested out the curve.3. As a fiduciary to…

Companies also have different guidelines on which investments are considered capital expenditures, potentially affecting the computation of FCF. For example, some companies may take longer to pay their debts in order to preserve cash. When it comes to valuation and financial modeling, most analysts use unlevered FCF. Yes, rising capital expenditures (CapEx) can mask poor…

However, it wants to use the LIFO method for external financial reporting and tax reporting purposes. Most companies use the LIFO method for external reporting due to the tax savings and the non-LIFO method for internal reporting. As explained by the US GAAP, the LIFO Reserve’s purpose is to disclose financial information for fair representation…

Direct forecasting provides short-term precision, while indirect forecasting can shed insights useful for strategic long-term planning. Direct cash flow forecasting relies on real-time cash transaction data, which isn’t always readily available. If you need granular cash flow insights for day-to-day cash management, direct forecasting might be more advantageous. Direct forecasting helps with day-to-day and operational…