Act as a strategic partner, not a vendor, by analyzing a prospect's annual reports, 10Ks, and shareholder letters. Use this research to inform them about strategic risks or business issues they haven't considered, immediately differentiating you from competitors who just ask basic discovery questions.

Companies that grow via frequent acquisitions often exclude integration costs from adjusted metrics by labeling them "one-time" charges. This is misleading. For this business model, these are predictable, recurring operational expenses and should be treated as such by analysts calculating a company's true profitability.

Official financial segments often reflect bureaucracy, not true business economics. By creating a 'Shadow P&L' through deductive analysis, investors can uncover massive hidden costs in non-core initiatives, as ValueAct did with Microsoft's hardware divisions.

Instead of general queries, instruct your AI to act as an account executive with an urgent deadline. This framing forces the AI to cut through fluff (like a company's founding date) and extract pressing business initiatives from documents like 10-Ks and earnings calls.

The debate over AI chip depreciation highlights a flaw in traditional accounting. GAAP was designed for physical assets with predictable lifecycles, not for digital infrastructure like GPUs whose value creation is dynamic. This mismatch leads to accusations of financial manipulation where firms are simply following outdated rules.

Escape the trap of chasing top-line revenue. Instead, make contribution margin (revenue minus COGS, ad spend, and discounts) your primary success metric. This provides a truer picture of business health and aligns the entire organization around profitable, sustainable growth rather than vanity metrics.

Beyond outright fraud, startups often misrepresent financial health in subtle ways. Common examples include classifying trial revenue as ARR or recognizing contracts that have "out for convenience" clauses. These gray-area distinctions can drastically inflate a company's perceived stability and mislead investors.

Instead of labeling a potential issue like negative cash flow as a definitive "red flag," which can be misleading, view it as a "flammable item." By itself, it may be harmless. The real danger only materializes when a "spark"—a catalyst like a new competitor or rising interest rates—is introduced.

Accounting's true value for many MBA graduates isn't immediate. Professor Ed DeHaan frames it as the foundational "language of business" that becomes indispensable 5-10 years post-graduation. This fluency is critical for navigating senior management and boardroom discussions, where strategy is articulated through financial statements.