What is EBITDA?
EBITDA is earnings before interest, taxes, depreciation, and amortization, the most widely used proxy for a business’s operating performance in any valuation […]
What is the difference between Direct and Indirect Costs?
Direct costs are tied specifically to delivering a product or service; indirect costs support the business overall and cannot be traced to […]
What is Department-Level Reporting?
Department-level reporting breaks financial performance down by team, function, or business unit, showing not just whether the business made money, but where […]
What is Deferred Revenue?
Deferred revenue is cash received from a customer for work not yet delivered, a liability on the balance sheet until the obligation […]
What is Contribution Margin?
Contribution margin is what remains from revenue after variable costs, the portion of each dollar of sales that contributes to covering fixed […]
What are Consolidated Financial Statements?
Consolidated financial statements combine the results of a parent company and its subsidiaries into a single set of reports, eliminating intercompany transactions […]
What is a Chart of Accounts?
A chart of accounts is the structured classification system that organizes every transaction a business records and determines whether financial statements answer […]
What is Catch-Up Bookkeeping?
Catch-up bookkeeping is the process of reconstructing and bringing financial records fully up to date after they have fallen significantly behind. It […]
What is the difference between Cash and Accrual Accounting?
Cash accounting records transactions when money changes hands; accrual accounting records them when they are earned or incurred, and the CRA requires […]
What is a Cash Flow Statement?
The cash flow statement tracks how cash actually moved in and out of a business during a period and explains why the […]
What is Bookkeeping?
Bookkeeping is the disciplined, ongoing recording of every financial transaction in a business. It is the foundation that accurate reporting, clean tax […]
What is a Balance Sheet?
The balance sheet is the financial statement that shows what a business owns, what it owes, and what is left for the […]