Underwriting

Understanding a business entity’s financial health with Rutter

Introduction

Using Rutter’s commerce, payments, and accounting APIs, understand the full financial health of a business, from their source of truth revenue and payments data to their cost of goods sold data.

1. Step 1.

   Connect to a business entity’s accounting system using Rutter Link.

2. Step 2.

   Understand business metrics with the major financial statements: Cash Flow Statement, Income Statement, and Balance Sheet.

3. Step 3.

   Understand source of truth revenue data with Transactions and Orders.

4. Step 4.

   Understand source of truth free cash flow with Payouts.

5. Step 5.

   Understand Customer Segmentation with Accounting Customers and Commerce Customers.

6. Step 6.

   Understand Product Category with Items and Products.

Connect to the Business Entity’s Accounting System

To begin the process of understanding a business entity's financial health, you must first connect to their accounting system using Rutter Link. For more information on creating your first connection, refer to the Getting Started guide.

Understand Business Metrics with Financial Statements

The major financial statements can provide valuable insight into a business entity's financial health.

Cash Flow Statement

The GET /cash_flow_statements provides information on the cash inflows and outflows of a business entity during a specific period of time. It can help you understand a business entity's liquidity and ability to generate cash.

Income Statement

The GET /income_statements provides information on a business entity's revenues and expenses during a specific period of time. It can help you understand a business entity's profitability.

Balance Sheet

The GET /balance_sheets provides information on a business entity's assets, liabilities, and equity at a specific point in time. It can help you understand a business entity's financial position.

Understand Source of Truth Revenue Data with Transactions and Orders

GET /orders and GET /transactions can provide insight into a business entity's source of truth revenue data. Transactions represent financial events that have occurred including successful charges, chargebacks, returns, and failed charges, while Orders represent the sale of goods or services. In commerce platforms, orders are linked to transactions made as part of the order.

Understand Source of Truth Free Cash Flow with Payouts

GET /payouts can provide insight into a business entity's source of truth free cash flow by showing the movement of money from the commerce or payments platform to the business entity’s bank account.

Understand Customer Segmentation with Accounting Customers and Commerce Customers

GET /customers (commerce) and GET /customers (accounting) can provide insight into a business entity's customer segmentation. Use metadata around customer address and purchase history to better segment a business entity’s audience.

Understand Product Category with Items and Products

GET /items and GET /products can provide insight into a business entity's product categories. Use order size, product category, pricing and variant information to better understand what products a business is selling.