Business Finance Terms, Explained Simply.
Learn more about common financial terms here.
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A KPI is a specific, measurable metric that reflects how well a critical aspect of a business is performing, chosen....
Intercompany transactions are financial dealings between two or more entities under common ownership, including management fees, loans, shared services, and....
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,....
Cost structure is the composition of a business’s costs, fixed versus variable, direct versus indirect, and it determines how profitability....
Cash reserves are the liquid funds held by a business beyond its immediate operating needs, a financial buffer against unexpected....
Cash flow management is the active discipline of controlling the timing and volume of cash moving through the business, ensuring....