Most finance teams know they need to capitalize commissions under ASC 606 — but building the actual amortization schedule is where things break down. Here’s a step-by-step walkthrough with journal entries and a practical Excel approach.
ASC 842 journal entries trip up even experienced controllers. The initial recognition entry, the monthly operating lease expense, and the finance lease split between depreciation and interest all follow specific patterns. Here’s every entry you need, with real numbers.
Both standards eliminate off-balance-sheet operating leases, but ASC 842 and IFRS 16 diverge on lease classification, discount rates, short-term exemptions, and income statement presentation. If you report under both — or are switching — here’s what actually differs.
Under ASC 842, every lease is either operating or finance — and the classification changes your income statement, cash flow, and audit disclosures. Here’s how to classify correctly and account for each type.
A reliable month-end close comes down to a repeatable checklist and the right supporting schedules. Here’s the full sequence — from Day 1 through final signoff — with specific focus on the technical areas that trip up growing finance teams.
Building an ASC 842 amortization schedule in Excel is manageable for one lease. With five or more, the manual approach breaks down fast. Here’s exactly how the schedule works — and what it takes to maintain it at scale.
The ROU asset at commencement equals the lease liability plus initial direct costs plus prepaid rent minus lease incentives received. Most teams get the lease liability right but miss the adjustments. Here’s how to calculate it correctly.
Runway is simple to define and surprisingly easy to miscalculate. Here’s the formula, how to avoid the common errors, and how to build a scenario model that gives you a defensible number for investors and the board.
Burn rate is the single number that tells you how long your startup can survive. This guide walks through the gross and net burn formulas, shows you how to build a dynamic burn rate model in Excel with real cell references, and flags the mistakes that make most spreadsheet models dangerously optimistic.
When runway gets tight, generic advice like ‘cut costs’ doesn’t help. This guide covers 12 specific levers a finance team can pull to extend runway — with concrete numbers, worked examples, and a framework for modeling the impact of each one.