I Spent 8 Years Studying Finance in School. Here’s What I Learned

[@Pilotalesiwa01]

Thanks so much this was so helpful ❤🙏🙏!!

[@SteveWCoughran]

My pleasure

[@cooperjames882]

Can we see a video about the growth model you spoke about near the end of the video? I'm an undergraduate business student, would be interested in seeing an example of the model, and more importantly have it explained by you. Great videos !

[@SteveWCoughran]

Yes, I’ll add it to the queue. Thanks

[@IyKuK2121]

I can understand ur emotions bro but the thing is you can’t complain management accounting ignoring free cash flow because the fundamental assumption of cost accounting and management accounting is to obtain operating profits so it ignores the rest of financial and capex related revenues and expenses , because management decisions require operating profit / contribution in mgt accounting terms because Net profit margin couldn’t be used for decision making as it varies due to increased volume of operations hence mgt accounts deal with operating profit or variable profit which excludes non no expenditure for the purpose of projections, financial accounts where the other rev and exp are considered starts after the end of mgt accounting

[@SteveWCoughran]

Thank you for sharing your perspective! I agree, management accounting is designed to focus on operating profits and contributions, making it essential for operational decision-making. However, I think it’s important to also consider that if we solely focus on revenue and costs without taking into account working capital, capital expenditures, and ultimately free cash flow, we risk missing a full view of the financial health of a business. Ignoring these elements can lead to cash flow issues or even threaten the business’s viability. So, while management accounting serves a critical purpose, a broader view that incorporates free cash flow is also vital to sustain long-term success.

[@IyKuK2121]

@@SteveWCoughran ya true we need a multi level strength both in cost/mgt accounting as well as financial accounting in order to incorporate both the requirements