Business Finance Terms, Explained Simply.
Learn more about common financial terms here.
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Working capital optimization is the active management of receivables, payables, and inventory to reduce the cash tied up in the....
Profitability improvement is the deliberate process of increasing the percentage of revenue that converts to profit, through pricing discipline, cost....
A virtual controller is a remote finance professional who oversees the accuracy, completeness, and integrity of a business’s accounting operations,....
A virtual CFO is an outsourced senior finance professional who delivers CFO-level services remotely, typically through structured, tiered service packages,....
Variance analysis is the comparison of actual financial results against budget, forecast, or prior periods, explaining the differences and identifying....
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....