Glossary Archives

Account receivable

Account receivable is an account in a company’s general ledger that represents the amount of money that the company is owed by its customers or clients for goods or services…

Account payable

Account payable is a liability account in a company’s general ledger that represents the amount of money the company owes to its suppliers or vendors for goods or services that…

Accrual

Accrual refers to the accounting method of recognizing revenues and expenses when they are earned or incurred, regardless of when the cash is received or paid. This means that revenues…

A business plan is a formal written document that describes the goals, strategies, and operations of a business. It outlines the business’s products or services, target market, competition, marketing and…

Business entity

A business entity is a legally recognized structure or organization that is established to conduct business activities. The term “entity” refers to an organization that is separate from its owners…

Business credit score

A business credit score is a numerical representation of a business’s creditworthiness and its ability to repay its debts on time. It provides an assessment of the credit risk associated…

Budget

A budget is a strategy for making calculations over a specified period, generally a year or a month, that are typically financial. A budget may include projected sales and revenue…

Bootstrapping

Bootstrapping refers to the process of starting and growing a business using one’s resources, with minimal or no reliance on external funding from investors, venture capitalists, or other sources. Bootstrapping…

Bankruptcy

Bankruptcy is a legal process that allows individuals or businesses that are unable to pay their debts to either eliminate those debts or restructure their payment obligations in a manageable…

Customer list

A customer list is a record of individuals or companies who have purchased goods or services from a business. This list typically include the names, contact information, and purchase history…

Current liabilities

Current liabilities are financial obligations or debts that a company is required to pay within a short period, typically within the next 12 months. These obligations are expected to be…

Credit limit

A credit limit is the maximum amount of credit that a financial institution, such as a bank or credit card issuer, is willing to extend to a borrower or account…

Crowdfunding

Crowdfunding is a financing method that involves raising small amounts of money from a large number of people, typically through online platforms. The funds raised can be used to support…

Cost-plus pricing

Cost-plus pricing is a pricing strategy that involves adding a markup to the total cost of producing a product or service to determine its selling price. In other words, the…

Cost of goods sold (COGS)

Cost of goods sold (COGS) is a financial metric that represents the direct cost incurred by a company to produce and sell its products or services. It includes all the…

Compound interest

Compound interest is a type of interest calculation that involves earning interest not only on the original principal amount but also on the accumulated interest from previous periods. In other…

Collateral

Collateral refers to an asset or property that is pledged as security for a loan or other financial obligation. The collateral provides a lender with a form of protection in…

Chargeback

A chargeback is a transaction reversal initiated by a cardholder, in which a bank or financial institution refunds a disputed charge to the cardholder’s account. Chargebacks are typically used to…

Cash at hand

Cash at hand, also known as “petty cash,” refers to the physical currency that a business keeps on hand for small purchases or unexpected expenses. It is typically a small…

Cash in bank

Cash in bank refers to the amount of money that a business or individual has deposited in one or more bank accounts that can be accessed and used for various…

Cashflow

Cashflow refers to the movement of cash into and out of a business or individual’s financial accounts. It is a crucial measure of financial health and sustainability, as it reflects…

Dividend

A dividend is a payment made by a corporation or company to its shareholders as a distribution of profits. Dividends are usually paid out in cash, but they can also…

Deposits

A deposit is a sum of money that is placed into a bank account or other financial account as a way of storing or saving funds. Deposits can be made…

Deductible

A deductible is a specified amount of money that must be paid out-of-pocket by an individual or an organization before an insurance policy or benefit plan begins to pay for…

Debt load

Debt load refers to the amount of debt that an individual or organization is carrying at a particular point in time. It is a measure of the total outstanding debt…

EMV Cards

EMV cards are a type of payment card that uses a specific technology standard to enhance the security of card-based transactions. The term “EMV” stands for Europay, Mastercard, and Visa,…

Expenses

Expenses are costs incurred by individuals or businesses to generate revenue or achieve specific objectives. Expenses can take many forms, including salaries and wages, rent, utilities, equipment, supplies, advertising, and…

Emergency fund

An emergency fund is a financial safety net or reserve that individuals or businesses set aside to cover unexpected expenses, financial emergencies, or a temporary loss of income. It is…

Equity

Equity is a term used in finance and accounting that refers to the ownership interest that an individual or entity has in an asset or business. It represents the residual…

Financial statements

Financial statements are documents that provide information about a business’s financial performance and position. Financial statements typically include an income statement, a balance sheet, and a cash flow statement. Financial…

Fixed assets

Fixed assets are long-term assets that are held by a business to generate provider-providing goods and services. Fixed assets include tangible assets, such as buildings, land, equipment, and vehicles, as…

Financial projections

Financial projections are estimates of future financial performance based on historical financial data, current market conditions, and other factors that may impact the business. Financial projections are an important tool…

Gross wages

Gross wages refer to the total amount of money an employee earns before any deductions are taken out. This also includes the employee’s base pay, as well as any bonuses,…

Gross profit

Gross profit is the difference between a company’s revenue and the cost of goods sold. It represents the amount of money that a company earns from its sales, after deducting…

Invoice

An invoice is a commercial document that outlines the details of a sale between a buyer and a seller. It serves as a record of the goods or services that…

Inventory

Inventory refers to the goods or materials that a business has in stock and is available for sale or use in its operations. This can include raw materials, work-in-progress, and…

Interest

Interest refers to the amount of money that a borrower pays to a lender for the use of borrowed funds. It is typically expressed as a percentage of the total…

Income statement

An income statement, also known as a profit and loss statement, is a financial statement that summarizes a company’s revenues, expenses, and net income over a specific period of time,…

Invoice

An invoice is a commercial document issued by a seller to a buyer that itemizes the products, goods, or services provided and indicates the amount owed by the buyer. It…

Line of credit

Line of credit is a type of revolving credit that provides borrowers with access to a specific amount of funds that they can draw from as needed, up to a…

PIN Verification

PIN verification, or Personal Identification Number verification, is a security measure used to authenticate individuals and ensure that only authorized users have access to certain systems, accounts, or services. A…

Point of Sale (PoS) Terminal

A Point of Sale (PoS) terminal, popularly known as “terminal,” is a device used by businesses to facilitate transactions and complete sales with customers. It’s the hardware and software combination…

Point of Sale (POS)

Point of Sale (POS) refers to the location and moment at which a customer makes a payment for goods or services. It’s the final step in a retail transaction where…

Recurring transactions

Recurring transactions refer to a type of financial arrangement where a customer gives authorization for a regular payment to be automatically deducted from their account at specified intervals. These transactions…