Business Finance Terms, Explained Simply.
Learn more about common financial terms here.
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The freedom point is the specific financial threshold at which a business owner has accumulated enough wealth to be financially....
Financial readiness is the personal financial dimension of exit preparedness, specifically, whether the proceeds from a business exit will be....
FP&A is the finance function responsible for budgeting, forecasting, performance analysis, and the financial modelling that supports strategic decisions, the....
Free cash flow is operating cash flow after capital expenditures, the cash the business actually generates that is available for....
A fractional CFO is a senior finance executive engaged on a part-time or defined-scope basis, providing CFO-level leadership on an....
A forecast estimates future financial results based on what is most likely to happen; a projection models what would happen....
Fixed costs remain constant regardless of how much a business produces or sells; variable costs rise and fall directly with....
A financial model is a structured, dynamic representation of a business’s finances, built to project performance under different assumptions and....
Financial due diligence is the structured investigation of a business’s financial records, performance, and obligations undertaken by a buyer, investor,....
Financial statements are the three core reports, the income statement, balance sheet, and cash flow statement, that together give a....
A fiscal year is the 12-month accounting period a corporation uses for financial reporting and tax purposes, and it does....
A family trust is a discretionary trust that holds assets, often shares of a private corporation, on behalf of family....