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Commercial Finance

Commercial finance is focused on forward-looking activities that support your growth strategy.

Jobs to be Done

  • Investment research
  • Fraud detection and anti-money laundering
  • Customer-facing process automation
  • Personalized assistants/chatbots
  • Personalized portfolio analysis
  • Exposure Modelling
  • Portfolio Valuation
  • Risk Modelling

Records

The three main financial statements:

  • Income Statement: shows a company's revenues and expenses over a specific period, indicating profitability.
  • Balance Sheet: provides a snapshot of a company's financial position at a specific point in time, showing assets, liabilities, and equity.
  • Cash Flow Statement: details a company's cash inflows and outflows over a specific period, indicating liquidity.

Operating cash flow indicates whether a company can generate sufficient positive cash flow to engineer a stronger platform to expand into new opportunities.

Key financial ratios to monitor include the Gross Profit Margin (measures profitability relative to costs), Current Ratio (indicates liquidity), and Return on Investment (ROI, indicates return generated from investments).

Regular review of these financial statements and ratios enables business owners and managers to identify areas of strong performance and those needing improvement, allowing for more informed decisions about budgeting, resource allocation, and investments. Overall, effective financial reporting provides valuable insights into a business's financial health, aiding in decision-making for future growth and sustainability

Commercial vs Compliance

For key financial workflows see table of commercial vs compliance activities.

Business ProcedureCommercial FocusCompliance Focus
Budgeting and ForecastingPreparing budgets, forecasting revenues and expensesEnsuring budgeting and forecasting processes comply with accounting standards
Financial ReportingPreparing internal financial reports for management decision-makingPreparing financial statements in compliance with accounting standards for external stakeholders
Financial AnalysisAnalyzing financial performance and identifying trendsEnsuring accounting systems and records are accurate and complete
Strategic PlanningParticipating in strategic planning and decision-makingProviding input on compliance issues related to strategic plans
Capital Structure ManagementManaging the company's debt and equity mix, investment decisionsEnsuring capital structure decisions comply with relevant laws and regulations
Risk ManagementIdentifying and managing financial risksImplementing internal controls to mitigate financial and compliance risks
Transactional ActivitiesManaging cash flow, receivables, payablesEnsuring transactions are recorded accurately and timely, in compliance with accounting standards

Accounting compliance is more about ensuring the company meets its obligations under accounting standards and regulations.

Startup Guide

  • Personal Finance 101
  • Equity 101
  • How to Incorporate Your Startup
  • A Quick Introduction to QSBS
  • Raising Venture Capital: Strategy
  • Raising Venture Capital: Mechanics
  • How to Pay Yourself and Your Team
  • Overview of Startup Finance
  • Treasury Management
  • Payroll, People and Taxes
  • Selling Secondary Shares
  • Stacking QSBS and Charitable Contributions
  • Deep Dive on Trusts
  • Selling Your Company
  • Investing In Your Startup from your Retirement Account
  • Recommend Software and Service Providers

Carry Startup Guide

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