Finance Accounting
14 articles
Depreciation (SLN/DB): Troubleshooting salvage value errors in asset tracking.
Depreciation schedules in fixed asset registers often fail when assets near the end of their useful…
NPV Function Trap: Why the NPV function in Excel is logically “wrong” (Period 0 vs Period 1).
The =NPV() function in Excel is one of the most frequently misused formulas in corporate finance.…
Negative Amortization Errors: Handling loan models where interest exceeds payments.
Negative amortization occurs when the scheduled payment on a loan is less than the interest accrued…
Fiscal Year Conversions: Errors in calculating “Year-to-Date” across non-calendar years.
When companies operate on a non-calendar fiscal year (such as July 1 to June 30 or…
PMT Function Errors: Why your loan amortization doesn’t match the bank statement.
When an Excel loan amortization schedule fails to match a commercial bank statement, financial analysts often…
Rounding Errors: ROUND vs. TRUNC vs. INT in tax calculation models.
In corporate and individual tax modeling, using the wrong rounding function can result in statutory non-compliance,…
Date-Value Discrepancies: Fixing 30/360 vs. Actual/365 interest day-count errors.
When corporate loan schedules, bond investments, or treasury models built in Excel fail to reconcile with…
Floating Point Errors: Troubleshooting why (1.2 – 1.1) doesn’t equal 0.1 in Excel.
If you type =(1.2 - 1.1) = 0.1 into an Excel cell, the formula returns FALSE.…
Precision as Displayed: Why 0.01 differences in Balance Sheets occur (and how to fix them).
A $0.01 balance sheet variance is one of the most common issues in corporate financial modeling.…
#NUM! in XIRR: Solving the “Result not found” error for sporadic investment dates.
An Excel =XIRR formula outputs a #NUM! error when its calculation engine cannot compute an annualized…
#NUM! in IRR: Handling multiple internal rates of return in non-conventional cash flows.
The #NUM! error in an Excel =IRR formula means the calculation engine failed to find a…
Iterative Calculations: Why turning on “Enable iterative calculation” can hide dangerous model errors.
When faced with a circular reference alert, many users navigate to File > Options > Formulas…