Business Finance Terms, Explained Simply.
Learn more about common financial terms here.
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Fund accounting tracks resources in separate, purpose-restricted pools to demonstrate that money was used as intended, the standard approach for....
Active business income is the profit a corporation earns from actually running a business, and it is the income that....
Accounts receivable financing is a funding arrangement where a business borrows against or sells its outstanding invoices to access cash....
Financial reporting is the regular production of structured financial information for the people who need it: owners or management making....
A financial dashboard is a curated, visual summary of the most important business metrics, designed to show what is on....
EBITDA is earnings before interest, taxes, depreciation, and amortization, the most widely used proxy for a business’s operating performance in....
Direct costs are tied specifically to delivering a product or service; indirect costs support the business overall and cannot be....
Department-level reporting breaks financial performance down by team, function, or business unit, showing not just whether the business made money,....
Deferred revenue is cash received from a customer for work not yet delivered, a liability on the balance sheet until....
Contribution margin is what remains from revenue after variable costs, the portion of each dollar of sales that contributes to....
Consolidated financial statements combine the results of a parent company and its subsidiaries into a single set of reports, eliminating....
A chart of accounts is the structured classification system that organizes every transaction a business records and determines whether financial....