“mm” (which is usually kept in the lower case) is an old-fashioned abbreviation that doesn’t see much common usage. You’ll find that it’s mainly used in the energy sector, but it otherwise doesn’t get recognized. You might not put a lot of thought into your abbreviations, and that’s okay.
What Does ‘MM’ Mean in Accounting?
- As you can see there is a heavy focus on financial modeling, finance, Excel, business valuation, budgeting/forecasting, PowerPoint presentations, accounting and business strategy.
- It’s also common to see K used for 1,000 and B for a billion.
- “M” is the most common abbreviation for “million.” If you’re going to abbreviate “million,” it would usually turn into this form.
- Frequently, in finance and accounting, an analyst will use k to denote thousands and a capitalized M to denote millions.
- If net income runs to $6,500,000, it goes on the books as $6.5MM.
- If a financial statement has a lot of large figures, the accountant may simply dispense with abbreviations.
However, there are official abbreviations out there that you might come across, and it would help to know about them. We’ll explain the correct abbreviation for “million” in this article. You can see it on ancient French and British ledgers from the 18th and 19th centuries where “M₤” represents £1000 and “MM₤” is £1million. So the convention of using M for thousands and MM for millions originated in Roman numeral-based accounting. There are actually a few different ways that 1,000,000 can be expressed when it comes to writing dollar amounts. Million can also be represented using “mn” and “m,” so an individual may see $4m, $4mn or simply $4 million.
What Does M and MM Mean in Accounting?
- You can see it on ancient French and British ledgers from the 18th and 19th centuries where “M₤” represents £1000 and “MM₤” is £1million.
- I have seen million, billion, and trillion abbreviated as M, B, and T respectively.
- “MM” is an old-fashioned abbreviation, but it still sees some usage today.
- It’s not surprising that most people don’t have $1 million because unless you make a ton of money, it is tough to save that much.
- 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.
- It makes the most sense considering that “million” starts with the letter “M.” Most abbreviations follow this standard practice.
Regretfully, until the USA goes metric there’s going to continue to be problem with this. Internet advertisers are familiar with CPM which is the cost per thousand impressions. The Report containing certain information of company C is given below, representing the same with the compact number representing mode.
Where Does the mm Abbreviation Come From?
CFI is on a mission to enable anyone to be a great financial analyst and have a great career path. 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 adjusting entries is recommended to add a “units” column so that each item contains a label for easy reference.
How do you write 2 million dollars?
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. The use of two m’s to denote millions is becoming less common. Frequently, in finance and accounting, an analyst will use k to denote thousands and a capitalized M to denote millions.
If a financial statement has a lot of large figures, the accountant may simply dispense with abbreviations. Stating at the top of the report that “all figures are in millions of dollars” should take care of it. Both approaches are allowed under standard accounting rules. What matters is that readers look at the figures and understand the amounts. Stating at the top of the report that “all figures are in millions of dollars” should take care what does mm mean money of it. It differs from the standard “k” and “M” abbreviations used in the metric system and most other sectors.
We don’t know for sure why the Romans used letters or why they chose the letters they did. One theory says the use of M was because Romans measured a mile as a thousand paces. Another theory is that it is a misprinting of the Greek letter phi. Our goal is to create English lessons that are easy to understand for everyone. “M” is the official abbreviation used whenever a million units of something are requested. 8,22,90,000 or 8.22 crores is equal to one million dollars in rupees.