Business Finance Terms, Explained Simply.
Learn more about common financial terms here.
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Sensitivity analysis tests how financial outcomes change when a single assumption is varied, isolating the variables that have the most....
Scenario planning models how a business performs under different sets of assumptions, giving a financial view of multiple possible futures....
Runway is how long a business can continue operating at its current burn rate before its cash is exhausted, measured....
A rolling 13-week cash flow forecast projects cash receipts and payments week by week over the next quarter, updated continuously....
Outsourced accounting is the delegation of some or all of a business’s accounting function to an external firm, typically delivered....
OKRs are a goal-setting framework that pairs a qualitative objective, what is to be achieved, with specific, measurable key results....
Multi-entity accounting is the management of financial records across multiple related corporations, ensuring each entity’s books are accurate, intercompany transactions....
A margin profile is the full picture of profitability across different dimensions of a business, by product, service line, customer,....
Margin expansion is the improvement in profitability as a percentage of revenue over time, achieved through pricing power, operational efficiency,....
Management accounts are regular internal financial reports prepared for the business owner and leadership team, designed to support decisions rather....
Liquidity planning is the forward-looking management of a business’s ability to meet financial obligations as they fall due, ensuring that....
A KPI dashboard is a visual display of the most critical business metrics in a single view, designed so the....