XIRR stands for Extended Internal Rate of Return. It is a financial metric used to calculate the annualized return on investments that have multiple, irregular cash flows (such as monthly SIPs, partial withdrawals, or ad-hoc top-ups). [1] Why XIRR is Useful Unlike simple returns or CAGR (Compound Annual Growth Rate) which assume you made a … Read more
A Credit Information Company (CIC), also known as a credit bureau, is an authorized organization that collects and maintains records of borrowers’ credit histories. They consolidate payment histories, loans, and defaults into credit reports and credit scores, which lenders use to evaluate your creditworthiness. [1, 2] How CICs Operate CICs function as a centralized data … Read more
Using a two-entry approach is actually a very smart way to handle this, as it creates a crystal-clear audit trail in your double-entry system. It perfectly logs the money leaving the bank first, and then formally documents why the loan balance is decreasing. Here is a clean reference note you can save for future transactions … Read more