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Author: Online Accounting Tutor

Financial Modelling for Accounting and Finance Students: Where to Start in 2026

If you are planning a career in corporate finance, FP&A, investment banking, or financial analysis, there is one skill that will determine your starting salary, your promotion speed, and the quality of the opportunities available to you more than almost anything else: financial modelling. The ability to build an integrated financial model in Excel — […]

What Is the Month-End Close Process? A Complete Guide for Accounting Students

If you are preparing for an entry-level accounting role, the month-end close process is the one workflow you absolutely must understand before your first day. It is one of the most important recurring responsibilities in accounting — and one of the skills most consistently tested in interviews. Yet most accounting students graduate having studied the […]

What Is IRR Partitioning?

What Is IRR Partitioning? IRR Partitioning is a financial analysis technique used to break down the Internal Rate of Return (IRR) into its component parts, typically operating cash flows and reversion cash flows (sale proceeds). This method provides investors with a clearer understanding of where the returns are coming from and the associated risks. Key Steps in IRR Partitioning Why Is […]

IRR Partitioning Calculation Example

IRR Partitioning: A Calculation Guide The Internal Rate of Return (IRR) is a widely used metric in real estate and investment analysis, offering a comprehensive view of an investment’s profitability. However, understanding the sources of IRR—whether from operational cash flows or the eventual sale of an asset—can provide deeper insights into risk and return. This is where IRR […]

Activity ratios Formulas and Interpretation

Meaning of Activity Ratios Activity ratios are also known as asset management ratios, they measure how efficiently a company is using its assets to generate sales. These ratios help determine if the amount of each type of asset is reasonable, too high, or too low in view of current and projected sales. Below we show […]

What is liquidity ratio in Accounting

Liquidity ratios are all about figuring out if a company can pay its bills in the short term. It’s like checking if you have enough cash on hand to cover your immediate expenses. Current Ratio Current Ratio Formula Current Assets / Current Liabilities Interpretation of Current Ratio (What it tells you) This is a basic […]

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