What is the difference between Operating and Capital Expenses?
Operating expenses are recurring costs deducted in the year they are incurred; capital expenses are investments in long-term assets that are expensed […]
What are Non-Cash Expenses?
Non-cash expenses reduce reported profit on the income statement without any cash leaving the business, with depreciation and amortization being the most […]
What is Month-End Close?
Month-end close is the process of finalizing all financial records after each period ends: posting transactions, reconciling accounts, recording accruals, and producing […]
What is the difference between Markup and Margin?
Markup is the percentage added to cost to set a price; margin is the percentage of that price that is profit, and […]
What is Job Costing?
Job costing tracks every cost associated with a specific project or engagement so it is clear how profitable each piece of work […]
What is an Income Statement?
The income statement shows revenue, costs, and expenses over a specific period and produces a net profit or loss figure that indicates […]
What is Holdback?
A holdback is a portion of each progress payment withheld by the client until a defined period after project completion, a legal […]
What is the difference between Gross and Net Profit?
Gross profit is revenue minus the cost of delivering a product or service; net profit is what remains after all operating expenses, […]
What is Grant Accounting?
Grant accounting is the discipline of tracking, recording, and reporting on each grant separately to prove the money was spent as required […]
What is Fund Accounting?
Fund accounting tracks resources in separate, purpose-restricted pools to demonstrate that money was used as intended, the standard approach for Canadian non-profits […]
What is Financial Reporting?
Financial reporting is the regular production of structured financial information for the people who need it: owners or management making decisions, lenders […]
What is a Financial Dashboard?
A financial dashboard is a curated, visual summary of the most important business metrics, designed to show what is on track and […]