Financial Modeling for Beginners [Glossary]

Are you a beginner in financial modeling and don’t know the terminology? Do you need to build a financial model or a financial plan, but you don’t know where to start? Use our glossary to learn the terminology of financial modeling! If you’re new to financial modeling, this glossary will help get you started. Terms used in financial modeling can be confusing and overwhelming, so this 7,000+ words glossary will provide a brief definition and explanation of 100+ of the most common terms.

Accounts payable

Accounts payable refers to the total amount of money that a company owes to its suppliers for purchases that have been made but not yet paid for. This figure is typically listed on a company’s balance sheet as an asset, as it is money that the company expects to pay back in the near future.

Accounts receivable

An account receivable (AR) is created when a business provides goods or services to a customer and the customer agrees to pay for the goods or services at a later date. The AR account is a record of the amount that the customer owes the business. The business can then use this account to track how much money it is owed by customers and when that money is expected to be paid.

Accumulated depreciation

Accumulated depreciation is a process that records the depreciation of an asset over time. This information is used to calculate the net book value of the asset. The accumulated depreciation account is increased each time the asset is depreciated and decreases when the asset is sold or retired.

Administration expenses

Administration expenses are those incurred in the course of running a company. This includes the cost of things like office supplies, consulting, and accounting. Administration expenses can be a significant expense for companies, and careful planning is necessary to keep these costs under control.

Ads

The purpose of advertising is to persuade potential customers to buy a product or service. Advertising can be in the form of television commercials, radio ads, online ads, or print ads. Most advertising uses complex academic jargon in order to make the product or service sound more appealing. However, some advertising is more subtle and relies on humor or emotional appeal to get the customer’s attention.

App maintenance cost

The app maintenance cost is the amount of time and money it takes to keep an app up and running. This includes fixing bugs, updating features, and responding to customer feedback. It can be costly to maintain an app, especially if there are frequent updates or changes required.

ARPU

ARPU is an abbreviation for “average revenue per user.” This metric is used to measure a company’s ability to generate revenue from its customer base. It is calculated by dividing a company’s total revenue by the number of active customers. This metric can be used to track a company’s growth and assess its ability to convert customers into revenue-generating users.

Assets

An asset is anything of value that a person or company owns. Assets can be divided into two categories: current assets and fixed assets. Current assets are things like cash, inventory, and accounts receivable. These are things that can be converted into cash within one year. Fixed assets are things like land, buildings, and equipment. These are long-term investments that will not be converted into cash within one year.

Assumptions

An assumption is a statement made for the sake of an argument that is not necessarily true. It is used to build a logical argument, and to make a point. In order for an argument to be valid, the premises must be true, and the conclusion must follow from the premises.

The assumptions underlying financial models for startups typically include the expectation of rapid growth in revenues and profitability, as well as a relatively short time horizon over which to realize these objectives. Startups are also often highly dependent on key individuals, so assumptions about the continued involvement or departure of these individuals can be important. Furthermore, a number of unknowns are inherent in startup businesses, so assumptions about things like market size and market share can be critical.

In a startup financial model, there are three primary types of assumptions: revenue, costs, and timing. Revenue assumptions involve forecasting how much money the startup will bring in over a certain period of time. Cost assumptions involve predicting how much it will cost to generate that revenue. Timing assumptions involve estimating when various revenue and cost items will occur. All of these assumptions are necessary to develop a realistic picture of the startup’s financial situation and potential for success.

Balance check

Balance check is a financial term that is used to describe the process of verifying that a company’s financial statements are accurate. This is done by comparing the company’s actual financial performance with the forecasted performance that was included in the financial statements. A balance check can also be used to identify any potential financial problems that a company may be experiencing.

Balance statement

A balance statement is a financial statement that shows a company’s assets, liabilities, and shareholders’ equity at a specific point in time. The balance sheet is divided into two sections: assets and liabilities. The assets section lists the company’s property and the liabilities section lists the company’s obligations. The shareholders’ equity section shows how the company’s owners have contributed to the business and how much they have earned in profits.

Break-even point

The break-even point is the point at which a company’s total revenue equals its total costs. This means that the company is neither making a profit nor experiencing a loss. In order to calculate the break-even point, a company needs to know its fixed costs and its variable costs. Fixed costs are those costs that do not change regardless of how many products or services a company sells. Variable costs, on the other hand, vary depending on how much product or service is sold.

Break-even revenue

The break-even revenue is the point at which a company’s total revenue equals its total costs. This means that the company is neither making a profit nor losing money. To calculate the break-even revenue, a company needs to know its fixed costs and its variable costs. Fixed costs are costs that do not change, such as rent or utilities. Variable costs are costs that change, such as the cost of materials or wages.

Capex

Capex is an acronym that stands for Capital Expenditures. It is a term that refers to the money that is spent in order to acquire or improve long-term assets such as property, plants, and equipment. Capex can be used by businesses to increase their productivity or to expand their operations. It is also used as a tool to increase shareholder value by improving the company’s long-term profitability.

Cash

Cash is a form of currency that is used to purchase items or services. It is typically physical money, such as coins and paper bills, but can also refer to digital forms of currency. Cash is convenient because it is widely accepted and easy to use. It is also difficult to counterfeit, making it a more secure form of payment than some other options.

Cash flow statement

A cash flow statement is a financial statement that shows how much cash a company has generated and used during a specific period of time. The statement includes both cash flow from operating activities and cash flow from investing activities. This information can be helpful for investors and creditors in assessing a company’s liquidity and ability to repay debt.

Churn rate

The churn rate is the percentage of customers who leave a company in a given period of time. This can be calculated by dividing the number of customers who left in a given period by the total number of customers at the beginning of that period. Churn rates can be affected by many factors, including the quality of customer service, the attractiveness of the product or service, and the price.

COGS

COGS refers to the cost of goods sold. This includes the direct costs associated with producing the goods, such as the cost of the materials and labor, and the indirect costs, such as factory overhead. The calculation of COGS is an important part of financial reporting for a company.

Contacts per sales rep per day

This metric measures how many contacts a sales rep makes on a given day. It can be used to gauge how effectively a sales rep is reaching out to potential customers and to determine if more or less contact is needed to generate results. Generally, the more contacts a sales rep can make in a day, the more opportunities they will have to close a sale. However, it’s important to note that not all contacts are created equal, and some may be more valuable than others.

Contribution

A company’s contribution is the amount of revenue it brings in minus the cost of goods sold. This measures how much money a company makes on each sale after it has paid for the products it sells. It’s used to calculate a company’s gross profit and is an important measure of profitability.

Conversion

Conversion rate is a marketing term used to describe the percentage of website visitors who take the desired action, such as filling out a form or buying a product. A high conversion rate means that your site is effective at getting people to do what you want them to do. To improve your conversion rate, you can test different versions of your website design, copy, and calls to action to see which one works best.

Core financials

Core financials are the most important and fundamental aspects of a company’s financial statement. They include information on a company’s revenue, expenses, assets, and liabilities. This information is used to assess a company’s overall financial health and performance. Core financials can be used to make decisions about whether to invest in a company, what terms to offer when lending money to a company, and more.

Current assets

Current assets are those that can be converted into cash within a year. This includes items like cash, accounts receivable, and inventory. The goal of a company is to have as many current assets as possible since this means they have more liquidity and are able to meet their obligations quickly.

Current liabilities

A current liability is a debt or other obligation that is owed and payable within one year. This includes items such as accounts payable, accrued liabilities, and short-term notes payable. The purpose of current liabilities is to provide a measure of the organization’s short-term financial health.

Customer service

Customer service can be defined as the provision of service to customers before, during, and after a purchase. It includes activities such as helping customers find what they are looking for, answering questions, providing information about products or services, addressing complaints or concerns, and following up with customers after a purchase. Good customer service is important because it can help create positive customer experiences that lead to customer loyalty and increased sales. It can also help businesses build strong relationships with their customers and create a positive reputation.

Customer service tickets

Customer service tickets are documents that are used to track customer interactions with a company. They can be used to track complaints, requests for assistance, or any other type of interaction. Customer service tickets can help companies keep track of customer interactions and ensure that they are providing quality customer service.

Debit & credit card fees

Debit and credit card fees are charged by banks for the use of their cards. The fees vary depending on the bank and the type of card. Generally, debit card fees are lower than credit card fees. The most common fee is a monthly maintenance fee, which is charged whether or not the card is used. Other fees include ATM withdrawal fees, over-the-limit fees, and balance transfer fees.

Debt

Debt is a financial obligation incurred when a borrower receives money or something of value from a lender. The borrower usually agrees to repay the debt plus interest, in installments or in one lump sum. Debt can be secured or unsecured. A secured debt is backed by collateral, such as a house or a car. If the borrower fails to repay the debt, the lender can seize the collateral.

Debt payment

Debt payment refers to the act of making a payment to a creditor in order to reduce or repay a debt. This can be done through a variety of methods, including lump-sum payments, installment payments, and debt consolidation. When it comes to debt repayment, it’s important to consult with a financial advisor to find the best strategy for your unique situation.

Deferred revenue

Deferred revenue is an accounting term that refers to money that has been received by a company but has not yet been earned. For example, a company might receive a payment from a customer in advance for services that will be provided in the future. The money received is considered deferred revenue until the services are actually provided. At that point, the revenue is recognized and the deferred revenue account is credited.

Depreciation

Depreciation is the decrease in an asset’s value over time. This decrease can be caused by a variety of factors, such as wear and tear, technological advancements, or changes in market conditions. Generally, depreciation is accounted for in financial statements by allocating the cost of an asset over its estimated useful life. This allocation allows companies to reflect the reduction in the value of their assets in their income statements and balance sheets.

EBIT

Earnings before interest and taxes (EBIT) is a measure of a company’s profit that excludes the impact of interest expenses and income taxes. This metric is often used to evaluate a company’s profitability because it provides a snapshot of the company’s performance without the distortions caused by debt financing and tax rates. EBIT can be found on a company’s income statement.

EBITDA

EBITDA is a measure of a company’s profitability that takes into account its operating income, before interest and taxes, but excludes depreciation and amortization. The resulting figure gives investors a snapshot of how much cash the company is generating from its core business operations. EBITDA can be used to compare different businesses, or to see how a company is performing compared to the previous year.

Email list

An email list is a collection of email addresses that can be used to send messages to a group of people. Email lists can be used for a variety of purposes, such as marketing, networking, and communicating with customers or clients. Most email lists are managed with software that allows you to easily add and remove email addresses from the list.

Email marketing

Email marketing is a form of direct marketing that uses email to promote a product or service. Email marketing can be used to build relationships with customers by providing valuable content and promoting offers. Email marketing can also be used to increase website traffic and generate leads.

Equity

Equity refers to the value of a company’s outstanding shares. This value is determined by the company’s assets and its ability to generate future income. Equity is important because it represents the portion of a company that is owned by its shareholders.

Expenses

The expenses in a financial model are the costs associated with running the business. These costs can include things like rent, employee salaries, and materials used in production. In order to make accurate projections of a business’s future income and expenses, it is important to understand all of the costs involved.

Fees & Insurance

Fees and insurance are important considerations in any financial model. Fees can be charged for services rendered or products sold, and insurance can protect individuals or organizations from financial losses in the event of a disaster or other unexpected event. In a financial model, it is important to accurately calculate both fees and insurance costs so that the overall profitability of the venture can be accurately assessed.

Financing activities

Financing activities are the financial maneuvers undertaken by a company to generate the cash it needs to operate. This might include issuing new debt or equity, borrowing money from a bank, or selling assets. The goal is to bring in more cash than the company spends in a given period of time, ideally creating a positive cash flow. Financing activities can also include things like making payments on maturing debt or investing in new assets.

Financial model

A financial model is a tool used to help forecast future performance or to value a company. It uses past financial data to build a mathematical model of how a company has performed in the past and then uses this information to predict how the company might perform in the future. Financial models can be used to test different scenarios, such as what would happen if the company increased or decreased its sales, or if it changed its pricing strategy.

Fixed assets

Fixed assets are long-term physical assets used in a business, such as land, buildings, and vehicles. These assets are not typically traded on the open market and tend to have a longer lifespan than other types of assets. They are used by businesses to produce goods or services, and typically provide a steady stream of income for the company. The depreciation of these assets is often a significant expense for businesses, so it is important to carefully track and manage them.

Follower

A social media follower is someone who subscribes to another person’s or company’s social media account. This could be done through clicking the “follow” button on a social media platform like Twitter, LinkedIn, or Facebook, or by subscribing to a company’s email list. When a follower subscribes to another person’s or company’s account, they will receive updates from that person or company whenever they publish something new.

Free cash flow

Free cash flow (FCF) is a measure of a company’s financial performance, calculated as operating cash flow minus capital expenditures. FCF is important because it indicates how much cash a company has available to repay debt, reinvest in its business, and distribute to shareholders. A positive FCF signals healthy financial health, while a negative FCF may be a sign of financial trouble.

Gross margin

Gross margin is the percentage of total revenue that a company retains after accounting for the cost of goods sold. Gross margin can be used to measure a company’s pricing strategy and efficiency in managing its costs. A high gross margin indicates that a company is able to sell its products at a higher price than its costs, while a low gross margin indicates that a company is not able to sell its products at a high enough price to cover its costs.

Gross profit

Gross profit is the amount of revenue that remains after deducting the cost of goods sold from total revenue. The calculation of gross profit can provide insights into a company’s pricing and production strategies, as well as its overall efficiency in generating sales. Gross profit can be used to measure a company’s performance over time or compare it with the performance of other companies in the same industry.

Growth of website traffic in percent

Traffic to a website can be measured in a variety of ways, but one common metric is the percentage increase in traffic from one time period to the next. This can help site owners and marketers understand how well their site is performing and identify areas for improvement.

In-app purchases

In-app purchases are a way for developers to make money from their apps. They allow users to purchase items or features from within the app, without having to leave it. This can be anything from extra lives in a game, to new clothing for a character, to additional features or tools in a productivity app. In-app purchases can be made with real-world currency, or with virtual currency that the app provides.

Income statement

An income statement is a financial statement that shows how much money a company has made and spent over a specific period of time. This statement is also known as a profit and loss statement, and it can be used to track a company’s revenue, expenses, and profits over a given period. The income statement can be helpful for business owners, investors, and creditors in understanding how well a company is performing financially.

Income tax rate

The income tax rate is the percentage of an individual’s income that is taxed by the government. The tax rate varies depending on the amount of income that is earned and the type of income that is earned. Generally, the higher the income, the higher the tax rate. Income that is earned from investments is usually taxed at a lower rate than income that is earned from working.

Influencer

An influencer is a person who has the ability to persuade others to do something, usually through their online presence. They can be bloggers, YouTubers, or even celebrities. Oftentimes, they are experts in their field or have a large following on social media. Because of this, they can be very persuasive when it comes to promoting products or ideas.

Interest rate

The interest rate is the percentage of a sum of money that is paid to the person who lends the money, over a given period of time. It compensates the lender for the delay in spending the money and also provides an incentive for the borrower to repay quickly. The interest rate is usually expressed as an annual percentage.

Investing activities

The main goal of investing activities is to increase the value of the company by generating a return on the investment. This is typically done by allocating resources to opportunities that have the potential to create future income, such as buying new equipment or investing in research and development. Investments can also include purchasing another company or investing in real estate. By making these types of investments, a business can hope to increase its profits and become more valuable over time.

Investment list

An investment list is a compilation of all the potential investments an individual or organization is considering. The list can be as short as two items or as long as dozens, depending on the complexity of the investment options and the amount of due diligence that has been conducted. The purpose of an investment list is to provide a clear, concise overview of all the possible investments that are being considered, which can help make the decision-making process easier.

Leasing expenses

Leasing expenses are the costs associated with leasing a property. These costs may include the rent itself, as well as any associated fees, such as security deposits or lease initiation fees. Leasing expenses can be a significant portion of a business’s overhead, so it is important to carefully compare all of the options before signing a lease.

Liabilities

Liabilities are a company’s obligations to its creditors. These can include short-term and long-term debt, as well as accounts payable. Liabilities are recorded on the balance sheet, and they can increase or decrease depending on the company’s financial position. For example, if a company takes out a loan, its liabilities will increase, and if it pays off its debt, its liabilities will decrease.

Loan

A loan is an amount of money that is borrowed from a lender and must be repaid with interest. Loans are typically used to finance large purchases, such as a home or a car. They can also be used to cover unexpected expenses, such as medical bills or school tuition. There are a variety of different types of loans available, including personal loans, student loans, and mortgage loans.

Loan balance

The loan balance is the total amount of money that is still owed on a loan. This includes both the principal amount and the interest that has accrued. The loan balance can be affected by a variety of factors, including payments made, fees charged, and the current interest rate. Generally, the higher the interest rate, the more quickly the loan balance will grow.

Loan interest

The interest on a loan is the amount of money the borrower pays to the lender in addition to the principal amount of the loan. It is typically expressed as a percentage of the principal amount. Interest rates can be fixed or variable, depending on the terms of the loan agreement. A fixed interest rate remains the same over the life of the loan, while a variable interest rate can change over time, depending on market conditions.

Loan payment

A loan payment is the sum of money that a borrower agrees to pay to a lender in order to finance the purchase of a good or service. The borrower typically makes regular payments to the lender over an agreed-upon period of time, known as the loan term. The size of each payment, as well as the total amount paid over the life of the loan, depends on a number of factors, including the amount borrowed, the interest rate, and the length of the loan term.

Loan principal

The loan principal is the amount of money that is borrowed by the borrower. This is the initial amount that is given to the borrower and does not include any fees or interest rates. The loan principal will be used to pay for whatever the borrower has requested it for, such as a car or a home.

Loan term

The loan term is the length of time the borrower has to repay the loan. The term may be fixed, such as five years, or it may be variable, such as the amount of time it takes for the borrower to graduate. The term can also be a combination of fixed and variable periods.

LTV

The lifetime value (LTV) of a customer is a calculation of the total profit a company can expect to earn from that customer over the entire course of their relationship with the company. This calculation takes into account not only the initial purchase but also any subsequent purchases the customer may make, as well as the costs associated with acquiring and retaining that customer.

Marketing

Marketing is the process of creating value for a company through the creation and distribution of products or services. It involves creating a plan to reach consumers and generating interest in the product or service. Marketing also includes setting prices and determining how to distribute the product or service.

Marketing budget

A marketing budget is an estimate of the financial resources that a company will need to allocate in order to achieve its marketing objectives. The budget is typically composed of two parts: the marketing plan and the marketing budget justification. The marketing plan lays out the specific marketing goals that the company hopes to achieve, while the budget justification explains how the proposed budget will help to achieve those goals.

MAU

Monthly active users (MAU) is a metric used by social media platforms and online services to measure the number of unique users who engage with a particular service over the course of a given month. MAU is generally considered to be a more accurate measure of user engagement than total registered users or total active users, as it takes into account users who only visit the platform once during the month.

Micro-Saas

Micro-Saas is a term that was coined in the early 2010s to describe a new category of software as a service (SaaS) offerings. Micro-Saas providers offer very limited feature sets and are usually targeted at specific markets or niches. Because of their limited feature sets, micro-Saas providers are often much cheaper and easier to implement than traditional SaaS offerings.

MRR

Monthly recurring revenue (MRR) is a term used in the software as a service (SaaS) industry to indicate the average amount of revenue a company will earn each month from its recurring customer base. This metric is important for SaaS companies because it indicates the company’s ability to grow and generate predictable revenue. Most SaaS companies generate the bulk of their revenue from monthly recurring subscriptions, so understanding MRR is critical for forecasting and budgeting purposes.

Net borrowing

Net borrowing is the total amount of debt that a government has incurred minus the total amount of money that the government has borrowed from the public. This figure includes both short-term and long-term debt. The net borrowing figure is important because it indicates the government’s ability to repay its debts. A high net borrowing figure means that the government has a lot of debt, which could lead to a financial crisis if not repaid.

Net cash flow

Net cash flow is the difference between a company’s cash inflows and its cash outflows. This number can be positive or negative, depending on how much more money is coming in than going out. Positive net cash flow indicates that a company is generating more cash than it is spending, while negative net cash flow means the opposite. Cash inflows can come from a variety of sources, such as sales revenue, interest payments, or asset sales.

Net cash flow from financing

Net cash flow from financing is the total amount of cash that a company receives or pays out as a result of its financing activities. This includes money raised from issuing new debt or equity, as well as payments made on outstanding loans or investments. The net cash flow from financing can be positive or negative, depending on how much cash the company raises or pays out.

Net income

Net income is a company’s total revenue minus the cost of goods sold and all operating expenses. This figure is important because it shows how much money a company has left over after all its costs are paid. This money can be distributed to shareholders in the form of dividends, used to reinvest in the business or both.

Operating activities

Operating activities are the primary revenue and expense-generating activities of a company. They are generally classified into three categories: cash flow from operating activities, cash flow from investing activities, and cash flow from financing activities. These activities are important to track because they can provide insights into a company’s financial health and performance.

Operating cash flow

Operating cash flow is the amount of cash a company generates from its normal business operations. This includes revenue from sales, minus the cost of goods sold and any other expenses. It also includes any changes in working capital, such as an increase in accounts receivable or a decrease in inventory. Operating cash flow can be used to measure a company’s ability to generate cash from its operations, which is important for investing in new products or expanding into new markets.

Optin rate user to email in percent

The optin rate measures the percentage of users who sign up to receive email notifications from a website. Generally, a high optin rate is seen as a good indicator that a website is providing valuable content and services that users want to be notified about. Low optin rates may indicate that users are not interested in the content or services offered by a website.

Optout rate email in percent

The opt-out rate for email is the percentage of people who unsubscribe from email newsletters or other email communications. This can be determined by surveying customers or tracking unsubscribe rates. High opt-out rates may indicate that customers are not interested in the content of the email or that they receive too many emails and are overwhelmed. Low opt-out rates may suggest that the content is relevant and interesting to customers or that they do not receive enough emails.

Organic reach in percent of follower

Organic reach is the number of unique people who saw your post in their News Feeds, including friends of friends, who didn’t have to take any action such as clicking, liking, or sharing for you to be shown to them. This metric measures the reach of your organic posts – that is, posts that weren’t boosted with paid media.

Organic website traffic

Organic website traffic is traffic that comes to a website as a result of unpaid, natural search engine results. This type of traffic is considered more valuable than traffic that comes from paid advertising, as it indicates that the website is being found and trusted by people who are looking for it specifically. A high volume of organic website traffic can be a sign of a successful website and can help to boost sales and conversions.

Owner´s funds

Owner’s funds refers to the total amount of cash and investments that a company has available to pay its bills and finance its operations. The owner’s funds equation is a key financial metric used by analysts to measure a company’s liquidity and overall health. The equation calculates a company’s net current assets, which is the amount of cash and assets that can be converted into cash within one year, minus its total liabilities.

Payroll tax

A payroll tax is a tax that employers are required to withhold from their employees’ paychecks. The money that is withheld is then sent to the government to help fund various programs, such as Social Security and Medicare.

Personnel

Personnel are the people who work for a company or organization. They may be divided into different groups, such as managers, engineers, and salespeople. Personnel can be important for a company because they help it to function and grow.

Personnel costs

Personnel costs are the expenses related to employee compensation, including wages and benefits. The cost of wages and salaries can be broken down into direct and indirect costs. Direct costs are those that are specific to an individual employee, such as wages and salaries. Indirect costs are those that are not specific to an individual employee, such as pensions and insurance.

Personnel plan

A personnel plan is a strategic plan that outlines the organization’s human resources needs and strategies for meeting them. It includes a workforce analysis, which identifies the number and types of employees needed to achieve the organization’s goals, and an HR planning process that recommends specific actions to recruit, hire, develop, and retain the required employees.

PPC

PPC stands for “pay per click” and is a form of online advertising where advertisers pay a publisher (usually a search engine, social media site, or website hosting company) each time one of their ads is clicked. PPC ads are often displayed alongside search results or on websites where they may be relevant to the user’s interests.

PPC budget

A PPC budget is the amount of money a company sets aside to spend on Pay Per Click advertising. This budget is determined by factors such as the company’s goals, the amount of traffic they expect to receive, and the average cost-per-click of their industry. Once a budget is set, the company then creates ads and target them to specific keywords. When someone clicks on one of these ads, the company then pays a pre-determined amount per click.

Price

The price of an object is the amount of money that is required to purchase it. The price is determined by a variety of factors, including the cost of the materials used to make the object, the amount of labor that is required to produce it, and the amount of profit that the seller wants to make. The price can also be affected by external factors, such as changes in the cost of raw materials or fluctuations in the currency exchange rate.

Rent

Rent is a payment made by a tenant to a landlord in exchange for the use of property, typically an apartment or house. Rent typically consists of monthly payments, but may be paid weekly or bi-weekly in some cases. The amount of rent owed is typically based on the size and location of the property, as well as the terms of the lease agreement.

Retained earnings

Retained earnings are a company’s profits that have not been distributed to its shareholders. Instead, the company has kept the money in its coffers, reinvesting it in the business or using it to pay off debt. The amount of retained earnings can be found on a company’s balance sheet.

Revenue

Revenue refers to the total amount of money that a company earns through its operations in a given period. This can come from sales of products or services, interest income, or other sources. Revenue is an important measure of a company’s financial performance, as it indicates how much money the company has brought in through its activities.

SaaS

Software as a Service (SaaS) is a type of subscription software that allows users to access and use the software from a remote location, often over the internet. SaaS applications are hosted by the service provider and accessed by users using a web browser. Because the software is hosted by the service provider, users do not need to install or manage any software on their own computer.

Sales reps

A sales representative is a person who sells products or services on behalf of a company. They often use complex academic jargon to explain the products or services to potential customers. They may also write about the products or services on behalf of the company, in order to promote them.

Server hosting

Server hosting is the process of providing a server to host an organization’s website. This can include providing a physical server or virtual server, as well as managing and maintaining the server on an ongoing basis. Server hosting providers can offer a variety of services, such as web hosting, email hosting, and domain name registration. By choosing a reliable and experienced provider, businesses can ensure that their website is always accessible and running smoothly.

Server hosting fees

Server hosting fees are the costs associated with running a server, which can include the cost of the physical server, as well as the software and hardware necessary to keep it running. These costs can vary depending on the size and complexity of the server, as well as the level of service required. For businesses, server hosting fees can be a major expense, but for personal users they can often be offset by using a home computer.

Shareholder

A shareholder is an individual or company that owns stock in a corporation. As a shareholder, they have a financial stake in the company and are entitled to dividends if the company pays them. They also have the right to vote on corporate matters, such as electing directors or approving major business decisions.

Shoutout

An influencer shoutout is when an influencer promotes another account on social media. This can be done in a number of ways, such as tagging the other account in a post, mentioning them in a caption, or using a branded hashtag. When an influencer promotes another account, it can help to expose that account to a new audience and drive traffic to their profile.

Software development cost

Software development cost is the amount of time, effort and money put into developing a software program. This includes the cost of designing, creating, testing and maintaining the software. The cost of software development can be high, especially if the program is complex or needs to be custom-made for a specific purpose.

Subscription

A subscription is a periodic payment for the use of a service. It can be monthly, yearly, or any other interval. With software as a service (SAAS), the provider hosts the software on their own servers, and customers access it over the internet. This eliminates the need to install and maintain the software on individual machines. SAAS is a growing trend in enterprise software because it delivers significant cost savings and agility advantages.

Taxes

The imposition of financial obligations by a government on its citizens and businesses is known as taxation. Taxes may be levied on income, property, sales, imports, or other sources. The purpose of taxation is to provide revenue for the government to fund public goods and services, such as infrastructure, education, and defense. Taxes also serve to redistribute wealth and reduce economic inequality. There are various types of taxes, including income tax, corporate tax, value-added tax, and payroll tax.

Total assets

The total assets of a company refer to the sum total of all the money and other valuable assets that a company owns. This includes cash on hand, accounts receivable, investments, and property and equipment. The total assets are used as a measure of a company’s financial health and can provide insight into how much money a company could potentially payout in dividends or reinvest back into the business.

Total capital

The total capital of a company refers to the sum total of all the money that has been invested in the company. This includes the money that has been invested by the company’s owners, as well as any money that has been borrowed by the company. The total capital is important because it represents the resources that a company can use to grow and expand its business.

Total liabilities and equity

Total liabilities and equity can be thought of as the sum total of a company’s obligations and the shareholders’ ownership stake. This figure is important for investors and analysts because it provides a snapshot of a company’s financial health. Total liabilities are the debts that a company owes, while equity is the portion of the company that is owned by its shareholders. Equity can be further divided into paid-in capital and retained earnings.

UAC

The user acquisition cost (UAC) is the amount of money that a company spends in order to acquire a new user. This can include things such as advertising, marketing, and promotional activities. UAC is an important metric to consider, as it can help companies determine how much they need to spend in order to grow their user base.

Useful life in years

Useful life in years is the estimated period of time during which an asset is expected to be productive and generate economic benefits for its owner. The concept of useful life is important for depreciation calculations since assets are typically depreciated over their estimated useful lives. Determining a company’s depreciation expense each year requires estimating the useful life of each asset.

Utilities

Utility expenses are those incurred in the production of revenue, such as electricity, gas, and water. In order to produce a product or service, a company must use utilities to power its machines, run its buildings, and produce its products. These costs are important to track as they can have a significant impact on a company’s profitability.

Web content costs

Web content can be expensive to produce, due to the need for high-quality, engaging content that will keep users on the site. While some companies may choose to outsource this work, it can also be expensive to hire a full-time writer or editor. Additionally, companies may need to pay for design and development services in order to create a website that is both visually appealing and easy to use.

Workdays per week

Workdays per week refer to the number of days in a week that an employee is scheduled to work. Most employers schedule employees to work five days per week, but there are some who schedule employees to work four days per week. There are also a small number of employers who schedule employees to work six or seven days per week. Typically, the longer the work week, the more hours an employee will work.