Business Finance Terms, Explained Simply.

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What is the owner’s Real Number?

The owner’s real number is the specific after-tax amount needed from a business exit to achieve financial independence, the personal....

What is Owner Dependence?

Owner dependence is the degree to which a business’s performance, relationships, and operations rely on the owner personally, the single....

What is Owner Readiness?

Owner readiness is the personal and psychological dimension of exit preparedness, whether the owner is genuinely ready to let go....

What is Outsourced Accounting?

Outsourced accounting is the delegation of some or all of a business’s accounting function to an external firm, typically delivered....

What are Objectives and Key Results (OKRs)?

OKRs are a goal-setting framework that pairs a qualitative objective, what is to be achieved, with specific, measurable key results....

What is an Operating Line of Credit?

An operating line of credit is a revolving facility that allows a business to borrow up to a set limit,....

What is Owner Compensation Planning?

Owner compensation planning is the deliberate design of how income is extracted from a corporation, balancing salary, dividends, and other....

What is Owner’s Equity?

Owner’s equity is what remains on the balance sheet after all liabilities are subtracted from all assets, the accumulated financial....

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....