Business Finance Terms, Explained Simply.
Learn more about common financial terms here.
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Percentage of completion is a revenue recognition method that records revenue and costs as a long-term project is completed over....
Payroll is the process of calculating, remitting, and reporting employee compensation and the associated statutory deductions, CPP, EI, and income....
Owner’s equity is what remains on the balance sheet after all liabilities are subtracted from all assets, the accumulated financial....
Operating expenses are recurring costs deducted in the year they are incurred; capital expenses are investments in long-term assets that....
Non-cash expenses reduce reported profit on the income statement without any cash leaving the business, with depreciation and amortization being....
Month-end close is the process of finalizing all financial records after each period ends: posting transactions, reconciling accounts, recording accruals,....
Markup is the percentage added to cost to set a price; margin is the percentage of that price that is....
Job costing tracks every cost associated with a specific project or engagement so it is clear how profitable each piece....
The income statement shows revenue, costs, and expenses over a specific period and produces a net profit or loss figure....
A holdback is a portion of each progress payment withheld by the client until a defined period after project completion,....
Gross profit is revenue minus the cost of delivering a product or service; net profit is what remains after all....
Grant accounting is the discipline of tracking, recording, and reporting on each grant separately to prove the money was spent....