Financial Glossary

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

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

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