In order to help you advance your career, CFI has compiled many resources to assist you along the path. In this example, we intentionally chose a piece of analysis that contained various different units, such as dollars and shares. When an analyst must present various different types of units, it is recommended to add a “units” column so that each item contains a label for easy reference.
What Does M and MM Mean in Accounting?
- These regional variations highlight the importance of understanding local customs and practices when communicating numerical information.
- While obscure outside banking circles, MM enjoys near universal usage within finance and accounting as the standard abbreviation for “millions”.
- These technologies had character limits, so accountants and bankers adopted the shorthand to save space.
- When plural, as in “millions,” it refers to multiples of 1,000,000.
- You’ll find that it’s mainly used in the energy sector, but it otherwise doesn’t get recognized.
For example, the Roman numeral MM is frequently used to designate that the units used in presenting information (financial and non-financial) in millions. For example, an annual salary of $60,000 might appear as $60k instead of $60M. A. You’ve identified two commonly used conventions in finance, one derived from Greek and the other from Latin, but neither one is standard.
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The example below shows how figures can be portrayed in millions. As stated above, MM is generally used in business to represent millions since the letter M by itself has historically meant 1,000. That said, if your organization uses M and it doesn’t cause confusion, you are free to use M to abbreviate one million. Unlock your potential and accelerate your career with sought-after management and leadership skills. These examples underscore the need for abbreviations like MM to avoid ambiguity with large figures. You can use any of the above abbreviations for bookkeeping thousand options when referring to thousands in writing.
Advance Your Accounting and Bookkeeping Career
Now that you know several large number abbreviations, you have access to several options you can use in your reports or mm meaning other forms of writing. You may also find it helpful to review measurement abbreviations for common units. Expand your ability to communicate about quantities and amounts by getting to know various names and expressions for large numbers. In academic, journalistic, or business writing, adhering to style guides and conventions is crucial.
Another theory is that it is a misprinting of the Greek letter phi. To understand MM, we have to go back to the early days of accounting when Roman numerals were used to record ledgers. In this era, M already signified 1,000, while MM denoted 1 million. Internet advertisers are familiar with CPM which is the cost per thousand impressions. To add to the potential for misunderstanding, MM is not the Roman numeral for million.
- To further muddy the waters, K can also mean “kelvin,” which is the base unit of temperature.
- Before “k” was adopted as the colloquial way of writing a thousand (i.e. $35k to mean $35,000), it was common to use “M” instead; “M” being the Roman Numeral for 1,000.
- Mastering the art of abbreviating “million” is a valuable skill, particularly for professionals and writers in the finance, business, and academic domains.
- For example, if a company reports a revenue of $10M, it indicates that the company generated $10 million in revenue.
- MM helped condense meaning while still conveying millions clearly.
- Rather than use the barred M, however, accounting went with MM as an abbreviation for a million.
- If a financial statement has a lot of large figures, the accountant may simply dispense with abbreviations.
- It makes the most sense considering that “million” starts with the letter “M.” Most abbreviations follow this standard practice.
- The barred M was necessary because the Romans didn’t use zero, and they didn’t like using more than three identical letters in a row.
- However, it’s worth noting that “MM” is also commonly used in investment banking, especially in large-scale financial transactions and deals involving millions of dollars or euros.
- However, I would not bet that that is a standard abbreviation.
It’s virtual accountant also common to see K used for 1,000 and B for a billion. To avoid confusion, use any and all abbreviations consistently throughout all your financial records. While you can make MM stand for millions of anything, it’s important that the reader knows whether you’re talking about dollars, euros, units shipped, etc. If, say, you use it for both units and dollars in the same document, separate the different categories so your readers don’t get confused. If the company sells 26,000 units, the accountant can record that as 26M units.