Explore Our Articles

Subscribe to our newsletter!

SG&A

SG&A (Selling, General, and Administrative) expenses are the running costs a business faces in order to market and sell its goods and services as well as run its daily operations. These expenses include things like marketing, salaries, rent, and office supplies.

Quick Ratio

The quick ratio, also known as the acid-test ratio, is a financial indicator used to evaluate a company's short-term liquidity and capacity to satisfy urgent financial obligations without relying on inventory sales. Inventory is not included in this ratio because it usually takes a long time to convert inventory into cash. Prepaid expenses are also not included because they are not convertible into cash, and as such are not capable of covering current liabilities. It is a critical ratio for understanding a company's financial statement for investors, creditors, and management.

MRR and ARR

In the fast-paced world of subscription-based businesses, it's crucial to have a clear understanding of your financial performance and growth potential. Two key metrics that play a vital role in this regard are MRR (Monthly Recurring Revenue) and ARR (Annual Recurring Revenue).

CFO and Free Cash

The CFO, as a key financial executive, is extremely important in managing the company's cash flow and financial activities. This has a significant impact on the creation, distribution, and utilization of free cash, which is the surplus money left over after the company has paid its operational costs, capital obligations, and other debts.

Gross Profit

Gross profit is the amount a business keeps from sales after subtracting the actual expenses incurred in creating or providing the products or services offered.

Investor Data Room

A virtual data room (VDR), commonly referred to as an investor data room, is an online platform used to securely store and distribute private documents and information during the due diligence phase of fundraising or investment deals. Entrepreneurs and investors can exchange private financial, legal, and operational papers through this one gateway.

Sustainable Finance for Startups

Sustainable finance for startups involves incorporating environmental, social, and governance considerations into financial strategies and decision-making processes to support long-term viability and positive societal impact.

7 Financial Mistakes Startups Should Avoid

To increase their chances of success, entrepreneurs must be aware of typical financial errors and take proactive measures to correct them. Insightful advice and assistance in avoiding these hazards can also be obtained by talking with financial experts.

Artificial Intelligence in Finance

The term artificial intelligence (AI) in finance refers to the automation and enhancement of financial decision-making processes via the use of sophisticated computer algorithms and machine learning techniques.

Cap Table

A spreadsheet or document called a capitalization table, also referred to as a cap table, shows the ownership structure of a corporation.

How to Analyze a Balance Sheet?

Because it offers useful insights into a company's financial status and assists stakeholders in making decisions, balance sheet analysis is unavoidably important. It helps to assess the liquidity and solvency position of the company and to compare them with industry standards in order to evaluate the financial success.

TTM (Trailing Twelve Months)

Trailing Twelve Months (TTM) is a financial statistic that is used to determine a company's performance over the previous twelve months. From various authorities, sometimes it can be referred to as the Last Twelve Months (LTM) or Rolling Twelve Months (RTM) in financial contexts.

Static Budget

A static budget is a financial planning tool that covers a fixed period of time and sets specific financial targets. Explore the benefits and limitations of using a static budget as a reference point for measuring financial performance.

Rolling Budget

A rolling budget is a continuous financial planning approach that allows companies to stay agile and responsive to changes in the business environment. Explore the benefits and challenges of using a rolling budget as a tool for long-term success.

Incremental Budgeting

Incremental budgeting is a financial planning approach that involves making small, incremental changes to a company's budget each year. Explore the benefits and limitations of using this approach to maintain financial stability and improve efficiency.

Expansion Revenue

Learn about expansion revenue, the additional income generated through business expansion into new markets or products. Explore the various ways companies can achieve it and the associated benefits and risks.

Budget Allocation

Budget allocation is the process of determining how a company's financial resources will be allocated across different areas of the business. Explore the various factors that can influence budget allocation decisions and their impact on a company's performance.

Future of Finance Teams

The future of finance teams is influenced by technology adoption, data analysis, sustainability, and regulatory changes. Finance professionals must adapt and upskill to stay relevant and meet the evolving needs of their organizations. Strong leadership and teamwork will be crucial for navigating these changes.

CFO's Role in Success

A CFO can drive success and value for an organization through financial planning, risk management, strategic decision-making, stakeholder relations, and professional development.

Runway for SaaS Startups

To ensure the success of your SaaS startup, it's essential to build a strong runway. This includes understanding your burn rate, setting financial goals, seeking funding, prioritizing customer acquisition, managing costs, and considering partnerships and strategic alliances. A solid runway takes time and careful planning, but the right strategy can lead to sustainable growth in the competitive SaaS industry.

Metrics for SaaS Startups

As a SaaS startup, it's crucial to track and measure your growth to make informed decisions. Key metrics include monthly recurring revenue (MRR), customer acquisition cost (CAC), lifetime value (LTV), customer satisfaction and retention rates, and user engagement.

Metrics for Fintech Startups

As a fintech startup, it's important to track key growth metrics to understand the health and success of your business. These may include customer acquisition cost (CAC), lifetime value (LTV), monthly recurring revenue (MRR), retention rate, and net promoter score (NPS). By regularly tracking and analyzing these metrics, you can make informed decisions about how to optimize your business for growth and achieve long-term success.

P&L Management

A P&L statement provides a detailed overview of a company's revenues and expenses, allowing for tracking of performance, identification of areas for improvement, and informed decision-making. P&L management involves forecasting, tracking actual performance, cost control, and regular review and updates. It is essential for the success of any startup and helps drive business growth.

EBIT, EBITDA & More

EBIT, EBITDA, and profit after tax are financial metrics used to evaluate a company's performance and profitability. EBIT measures profitability excluding financing, EBITDA excludes non-cash expenses, and profit after tax reflects the impact of all expenses.

Startup Profit

Startups can increase profitability by focusing on key factors such as a clear business model, controlling expenses, and exploring new markets and revenue streams. Strategies like diversifying revenue and continuously tracking financial performance can also help. Achieving profitability allows startups to sustain themselves financially and invest in growth and innovation.

Startup Costs

Starting a new business requires tracking costs such as incorporation, product development, marketing, office expenses, employee expenses, and professional services to make informed decisions about resource allocation and budget management.

5 CFO Skills Every CFO Should Have

As a CFO, focus on financial planning, risk management, strategic decision-making, stakeholder relations, and professional development to drive success and value for the organization.

Pre-Seed vs Seed Funding

The pre-seed funding round is for early-stage product development, or more specifically, for preparing the business to maximize its future fundraising opportunities through the development of an MVP that goes beyond a prototype and the assembly and testing of a cohesive, effective core team. Inversely, companies seeking seed funding are expected to have already tested their value proposition.

Due Diligence

Due diligence is the process of confirming all relevant facts and financial information as well as any other information that may have been mentioned during an M&A deal or investment process.

Startup Fundraising

Pre-seed funding is the funding that investors will make when the startup you want to do is still in the idea stage. Seed stage funding is the first funding that an enterprise receives at the beginning stage. For the startup to raise sufficient capital to start its operations during the establishment stage, the startup takes the first funding round and requests an investment.

How Advertising Agencies Lose Their Profitability?

Some marketing and advertising agencies have a hard time understanding why increasing their work isn't turning their business into a profitable one.

Financial Planning & Analysis

The term "financial planning and analysis" (FP&A) refers to a group of forecasting, budgeting, and analytical tasks that support a company's key strategic choices and overall financial health.

Zero Based Budgeting

Budgeting is one of the hottest topics in the finance world this year. The reason why this issue, which has always been extremely important, is on the agenda now can be considered to be related to the fact that financial statements have started to be examined more carefully than before after the pandemic.

Profit and Loss Statement

Lots of firms report both income and revenue. These two concepts are used to describe various number accumulations. Revenue, which is determined by multiplying the average sales price by the quantity of units sold, is the money made from normal business operations. ‍

Fractional CFO

Have you ever heard of the term "Fractional CFO"? Despite the increase in the number of startups and the budget difficulties they face in recent years, Fractional CFOs help them in finance departments. So, what are the features of fractional CFO?