What is EBITDA?

Charles Au, CPA shared an update on Section 163 of the One Big Beautiful Bill ✅ The limit on how much interest a business can deduct has been expanded, and the definition now uses EBITDA — before depreciation and amortization — allowing for larger deductions. This change applies retroactively to 2024, and even if you’ve already filed your return, there may be a chance to amend it and claim the benefit. For business owners, it’s a planning opportunity worth considering. Stay tuned for more insights from Charles and our team!

Year-end can feel overwhelming for many business owners, but it doesn’t have to. Here are three simple steps I recommend clients take well before December: Review cash flow to spot trends or concerns Confirm estimated tax payments Collect and organize documentation early Breaking things down into small, intentional steps creates clarity and saves significant time later. What’s one year-end task you always try to tackle early? #YearEndPlanning #TaxPrep #FinancialClarity #CashFlowManagement #BusinessTips #AccountingTips #PlanAhead #EntrepreneurLife

💡 Understanding Fictitious Assets in Accounting Not all assets are real — some are only on paper! Let’s decode Fictitious Assets 👇 📘 What are they? Fictitious assets are not real assets — they have no physical form or realizable value. They represent expenses or losses that are yet to be written off over time. 💰 Common Examples: • Preliminary expenses • Discount on issue of shares/debentures • Underwriting commission • Deferred revenue expenditure • Promotional or advertising campaign cost 📊 Key Insight: ✔ Shown under “Miscellaneous Expenditure” (old Schedule VI format) ✔ Gradually written off against future profits ✔ Not actual assets — just accounting adjustments 🔍 Quick Example: A company incurs ₹5,00,000 as preliminary expenses and writes off ₹1,00,000 yearly → Balance sheet shows ₹4,00,000 as unwritten-off preliminary expenses. . #AccountingBasics #FinanceLearning #FictitiousAssets #CAStudents #CorporateFinance

In accounting, we call it WHAT? Balance sheet…😄😄😄😄👇 What is a Balance Sheet? A balance sheet is a financial statement that provides a snapshot of a company's financial position at a specific point in time (e.g., December 31, 2023). It's based on the fundamental accounting equation: Assets = Liabilities + Shareholders' Equity This equation must always "balance," meaning the total value of everything the company owns (assets) must equal the sum of what it owes (liabilities) and the value that belongs to its owners (equity). Why is it Important? The balance sheet is crucial for investors, lenders, and management because it helps answer key questions: · What does the company own? (Assets) · What does the company owe? (Liabilities) · What is the net value of the company for its owners? (Equity) · Is the company financially healthy? (By analyzing ratios like debt-to-equity) and so on. The importance of balance sheet can never be overemphasized. You can add yours in the comments section. Follow Victor Iboh. Cheers🥂

Work the Numbers Wednesday – Investor Perspective: Financial vs. Managerial Accounting Financial accounting shows what happened (P&L, Balance Sheet, Cash Flow). Managerial accounting shows why it happened (NOI by property, leasing velocity, OPEX trends). 👉 Both are vital — one tells the story, the other guides the decision. Serious investors use both lenses to manage growth intelligently. #WorkTheNumbersWednesday #CREFinance #InvestorInsights #FinancialStatements #NewEdgeCRE

#Accounting : Accounting is the financial language of a business. It's more than just dealing with numbers; it's how a company tracks everything it owns (assets), owes (liabilities), and the owner's share (equity). By keeping clear records of money earned (income) and money spent (expenses), a solid accounting system helps managers make better decisions for future growth.

📊 How Financial Statements Are Connected Understanding financial statements isn’t just about reading numbers—it’s about seeing the bigger picture. The Income Statement, Balance Sheet, and Cash Flow Statement are all interlinked, and together they tell the real story of a business. This simple flow shows how: 💰 Revenues → Accounts Receivable → Cash inflows 📦 COGS → Inventory/Suppliers → Payments 🛠️ Depreciation → Fixed Assets → No direct cash impact 👥 Production Costs → Liabilities → Payments to suppliers & employees 📈 Gains/Losses & Interest → Assets/Liabilities → Cash inflows/outflows 👉 Mastering these connections = stronger analysis + smarter business decisions. #Finance #Accounting #CashFlow #BusinessInsights #FinancialStatements

Day 4/100 – How the 3 Financial Statements Are Connected Every financial statement plays a different role — but together, they create one complete picture. 📊 Income Statement → shows profit or loss 📘 Balance Sheet → shows what the company owns and owes 💧 Cash Flow → shows where the cash actually goes The profit from your Income Statement flows into your Balance Sheet. The changes in your Balance Sheet drive your Cash Flow. It’s all linked — like a financial ecosystem. 🌿 #100DaysOfFinance #Learning #FinancialStatements #Accounting #Investing #FinanceForAll #BusinessGrowth #FinancialEducation #linkedin #finance #investmentbanking

In the world of finance and business analysis, EBITDA is one of the most widely used metrics for evaluating a company’s financial performance. Standing for Earnings Before Interest, Taxes, Depreciation, and Amortization, EBITDA provides investors, analysts, and business owners with a clearer view of a company’s operating profitability — independent of financing and accounting decisions.

Do you know the difference betweeen an income statement, Balance Sheet & Cashflow Statement ? They may look similar but they are different ! Quick guide to make it clear. #Finance #Accounting #FinancialStatements #FinancialEducation #Investing #BusinessFinance #CareerGrowth #FinancialLiteracy #SmartInvesting