Finance glossary,
in plain English.

• 13-week cash flow forecast

  A direct, week-by-week projection of your cash position for the next quarter, based on expected receipts and payments.

• Accounts receivable aging

  A report that groups unpaid customer invoices by age, showing who owes money and how long each balance has been outstanding.

• Balance sheet

  A balance sheet shows your assets, liabilities, and equity at a specific date.

• Bookkeeper

  A bookkeeper is a professional who records financial transactions to keep your business books accurate and current.

• Cash flow statement

  A financial statement that shows how cash came in and went out of a business during a period.

• Cash runway

  Cash runway is the estimated time your current cash will last, based on expected inflows and outflows.

• Controller

  A controller oversees the close and internal controls to help keep your accounting accurate, on time, and protected.

• Debt schedule

  A debt schedule lists every business loan with key terms like balance, interest rate, and maturity date.

• Debt service coverage ratio

  A ratio lenders use to test whether a business's cash flow covers its debt payments for a period.

• Fractional CFO

  A fractional CFO is a finance executive who provides part-time senior finance guidance to businesses.

• Month-end close

  Month-end close is the process of finalizing a month's accounting so financial statements for that month can be prepared.

• Owner draws

  Owner draws are funds an owner takes out of a business for personal use, reducing equity rather than counting as an expense.

• Profit and loss statement (P&L)

  A P&L, or income statement, reports revenue, costs, and net income or loss for a specific period.

Information only, not financial, tax, legal, or investment advice, and not an assurance engagement. Full disclaimer.