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Financial Glossary

Plain-language definitions for 50 essential financial and accounting terms every business owner should know.

ABCDEFGILNOPRTVW

A

  • Accounts Receivable
  • Accounts Payable
  • Accrual Accounting
  • Amortization
  • Account Reconciliation

B

  • Balance Sheet
  • Burn Rate
  • Break-Even Point
  • Bad Debt
  • Bank Reconciliation
  • Bookkeeping

C

  • Capital Expenditure (CapEx)
  • Cash Flow Statement
  • Chart of Accounts
  • Cost of Goods Sold (COGS)
  • Current Ratio
  • Cash Conversion Cycle
  • Credit Terms

D

  • Depreciation
  • Days Sales Outstanding (DSO)
  • Double-Entry Bookkeeping

E

  • EBITDA
  • Equity

F

  • Fixed Costs
  • Fiscal Year
  • Free Cash Flow
  • Financial Statements

G

  • General Ledger
  • Gross Profit
  • Gross Margin

I

  • Income Statement
  • Invoice

L

  • Liabilities
  • Liquidity

N

  • Net Income
  • Net Profit Margin
  • Net Worth

O

  • Operating Expenses (OpEx)
  • Overhead Costs

P

  • Payroll
  • Profit and Loss Statement

R

  • Retained Earnings
  • Revenue
  • Return on Investment (ROI)
  • Runway

T

  • Tax Deduction
  • Trial Balance

V

  • Variable Costs
  • VAT (Value Added Tax)

W

  • Working Capital
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