financesubFinancial management means relying on past solid accounting information and using it for projecting the future financial well-being of a business or individual.

Financial management  key concepts are  assessment of a current business, evaluation of future financial needs both for short and long term, and investment decisions.


Finance Structure


Business Knowledge Inc. regards financial management as  a business  domain that complements accounting. The two of them cannot exist separately, as one offers a look at the  past and the other one allows for forecasting the future.

We offer  our clients business and individual financial analysis that can be part of  the Strategic Plan, or can be developed as a stand alone artifact for the benefit of our customers.

When evaluating a current business both non-financial and financial aspects should be considered. A non-financial evaluation is about industry and business size-up. The company financial statements together with correct interpretation of financial ratios are the basis for determining the present financial status and establish the needs for future financial requirements. Assessment of balance sheet, income statement, and cash flow statement allow for determining company present status. This creates the premises to evaluate the future and decide about borrowing, issuing bonds or selling equity to generate the cash necessary for the future growth of the business.

On the long term, the financial statements assessment together with the evaluation of capital markets are the basis for decision making process about long term financing and  investments.


Finance works very closely with Accounting and Marketing, as a powerful tool to validate the desired strategy that the company wants to adopt for further growth.



Finance is the means through which a company can represent the concept of value, internally to determine the worth of the company and as well for external use for showing other stakeholders about where that company positions itself on the chosen market.


Important components of finance are:


  1. Pro Forma Financial Statements

    1. Pro Forma Income Statement

    2. Pro Forma Balance Sheet

    3. Pro Forma Cash Budgets

  2. Cost of Capital

  3. Optimal Capital Structure: The Debt – Equity Equation

  4. The Financial Concept of Value

    1. Present Value

    2. Value Creation

    3. Value Measurement