Top 4 Finance Concepts I wish I learned Sooner

In finance, there are countless theories, tools, and techniques. It can be overwhelming at times, especially when you're trying to zero in on what's truly essential.

When I started my career, I felt that same sense of information overload, feeling like I had to master everything to be competent.

But over time, I learned that some core concepts stand out - the kind of insights that make a real difference in decision-making and can transform a financial team's impact on their company.

Learning to apply these concepts also helped me advance the ladder and earn the promotion I was working hard to get.

In this edition, I will explain the top four most important finance concepts and show you how to improve your company's profitability .

Here is what we'll cover:

1. Free invitation to a webinar on how AI is transforming Accounting
2. Watch my video on How to Write the Best Finance Resume
3. Top 4 Most Important Finance Concepts You Must Know
4. Offer of the week: Learn The Top #1 Method to Improve The Profitability of Your Company
5. Freebies of the week

Enjoy!

Nicolas

1. How AI Is Transforming Accounting

This free webinar is the best opportunity for you if you want to learn how AI is transforming Accounting and the future of AI in finance.

Here's what will be covered:

• The current role of AI in accounting: How AI is being used today to automate bookkeeping, improve data accuracy, and speed up month-end close processes.
• The future of AI in finance: From open banking to predictive analytics, what AI innovations can we expect in the next five years?
• Real-world applications: Together with Adam we will review concrete examples of how AI is already solving complex challenges in finance, along with practical demonstrations of AI tools in action.
• Data challenges: What are some current challenges regarding financial data and its use of AI today? Why is clean, structured data critical for successful AI implementation? How can accounting and finance teams prepare for the future of AI?

Join us on Thursday, November 14th, 12 PM ET , and get answers to all of your questions live.

?? Book your free spot now!

2. Watch my video and learn How to Write The Best Finance Resume (Full Guide + Template)

I have reviewed 1000s of CVs, and I know that it is hard to tailor your CV to land your dream job. But that's why I am here to help you out!

In this video, I explain how to write the best resume as a finance professional, showing you a real CV example.

Enjoy the video and subscribe to my channel to stay updated!

How to Write The Best Finance Resume

3. Top 4 Most Important Finance Concepts You Must Know (Learn all of them by clicking here)

Here are the 4 key finance concepts , along with how to apply them, why they are important, use cases, and my pro tip.

#4: PVM Analysis (Price – Volume – Mix)

Components of PVM Analysis

Price This aspect examines the impact of changes in price on sales revenue while keeping quantity constant. Understanding price effects helps determine if pricing strategies are driving profitability.

Volume Volume refers to the number of units sold. Selling more products, even at the same price and mix, can lead to higher sales. Volume effects highlight the impact of market demand and sales efforts.

Mix The product mix effect refers to changes in the composition of products sold. Even if the total quantity and prices remain unchanged, a shift toward selling more high-margin products can increase revenue. This component reveals how different products contribute to profitability.

Preview of the PVM Analysis Video Course (Also, I've unlocked a free video lesson for you - click here to watch it )

Click on the preview to watch the free video lesson of the course

Why Is It Important PVM analysis is a powerful tool that can help a company deeply understand the drivers behind revenue changes.

It breaks down sales variances into price, volume, and product mix effects, giving finance professionals clarity on how each factor contributes to overall performance.

By understanding these components, you can take actionable steps to enhance profitability, make strategic pricing decisions, and optimize the sales mix.

Use Cases PVM analysis is particularly useful during sales reviews.

It allows you to assess how price changes, sales volumes, and shifts in product mix have affected revenue.

For instance, if sales are down, is it because of decreased volume, a drop in price, or selling a higher proportion of less expensive products?

These insights can guide strategic decisions to improve revenue.

Pro Tip Use PVM analysis regularly – don’t wait until things go wrong.

You can proactively adjust strategies to maximize sales performance and profitability by continuously monitoring price, volume, and mix impacts.

#3: Budget Process

Steps in the Budget Process

1. Set Expectations with Management Begin by aligning financial goals with management expectations to ensure everyone is on the same page regarding revenue, expenses, and growth targets.

2. Sales Forecasting Develop a sales forecast that forms the basis of the entire budget. This involves assessing market conditions and predicting future sales.

3. Operational Plan Create an operational plan that includes production schedules, inventory management, and resource allocation.

4. Resource Allocation Identify and allocate the resources needed to support the operational plan, including staffing, raw materials, and technology.

5. Standard Costs and Overhead Calculate standard costs and overhead to understand the fixed and variable expenses involved in production.

6. Income Statement, Balance Sheet, and Cash Flow Statement Develop these financial statements to provide a complete picture of the company’s financial health, aligning projected revenues and costs.

Here is a free preview of the video I have prepared for you to better understand the budget process:

Click on the preview to watch the free video

Why Is It Important

A well-planned budget is a roadmap for business success. It sets financial expectations, guides spending, and aligns resources with strategic goals.

A solid budget process helps mitigate risks, manage cash flow, and ensure that all departments work toward the company’s financial targets.

Use Cases

The budget process begins with setting expectations with management and proceeds through forecasting sales, creating operational plans, and determining resources.

Once standard costs and overhead are calculated, companies create income statements, balance sheets, and cash flow statements.

This comprehensive approach ensures that every aspect of the business is aligned and adequately funded.

Pro Tip

Always involve department heads in the budgeting process.

Their input is crucial to creating a realistic budget, and involving them from the start ensures greater buy-in and accountability.

Learn the rest of the finance concepts and how to apply them in my website article .

Click here to learn the rest of the top finance concepts

4. Offer of the week

Learn The Top #1 Method to Improve The Profitability of Your Company

Imagine it's the end of the month. Your boss asks for the variance analysis report, and you already know how this goes. A lot of numbers, mixed signals, and vague explanations. But this time, you’re ready.

Not too long ago, I was in your shoes. Explaining variances felt like an uphill battle. My answers were either too broad or not what my boss wanted. I knew there had to be a better way, but nobody taught us that in school.

That's when I discovered the PVM Analysis - a game-changer in understanding profitability.

Suddenly, instead of giving approximate answers, I was diving into the real drivers of profit margins. I saw the impact of product mix, volume, and pricing on the bottom line, uncovering insights that changed how our team operated.

PVM Analysis became my secret weapon. Instead of struggling, I was delivering insights that made a difference - insights no one else could see. And it changed everything for me.

Now, I want to share this with you.

In my PVM Analysis Video Course , I’ve distilled everything into a practical, easy-to-follow format. You’ll learn the fundamentals of PVM, apply it to real-life situations, and become the go-to expert your team relies on.

Finance pros have already transformed how they approach variance analysis. They've gone from feeling stuck to making strategic decisions that drive profitability.

And the best part? You can get there, too, without wasting years trying to piece it together.

For the next 4 days, I'm offering you a 50% discount on the PVM Analysis Video Course .

If you're ready to save time, impress your boss, and become a key player in your company’s success that drives profitability, now's your chance .

Click here to save 50% and secure your access to the course now!

5. Freebies of the week

Financial Statements Templates

Download now

Audit Preparation Checklist

Download now

Which is the top finance concept for you?

Let me know!

Nicolas

P.S.: This course will save you countless hours of trial and error. Plus, you'll gain insights that will make you stand out as a true expert. This is the shortcut I wish I had at the beginning of my career. Master the top profitability analysis method and become irreplaceable in your team today!