Business finance, put simply, is the money a business needs to establish and run its business. It involves the ways in which a company obtains and uses money and in the broader context, business finance is about strategies for earning, saving and investing revenue.
Business finance includes the information contained in financial documents such as profit and loss statements, balance sheets and cash flow statements. It also covers strategies that businesses typically use to manage and raise money, such as leveraging future rather than present value.
As the legal advisor within a client’s advisory team of lawyers, corporate financers and accountants, an awareness of how money flows and grows is essential for a corporate lawyer so you understand the strategic decisions behind managing a business’s finances.