Do you have a business providing services? Are you wondering how you can pick out the right price for these services to make your business a cut above the rest? …
How to Start a Career in Accountancy
Becoming an accountant is a sound proposition in a world where finance rules, keeping track of money is a central demand of most businesses. It is a career option that …
Here’s How You Can Eliminate Revenue Leakage Today
In an ideal world, it would be easy for a business to stay on top of its profitability situation and not bleed cash because of delays or inefficiencies. But in reality, …
Key Elements of Financial Analysis
You’ll need to fully understand how a company works to get the most out of your investment. One good way to know how a business is doing is to carry out a …
Finding a High Performing Financial Accounting Staffing Agency
The accounts or the financial team in your organization is responsible for making crucial decisions. The success or failure of your business often revolves around these decisions. This is why …
Accounting Definitions
This page holds our Financial Expert™ Definitions of accounting jargon and terms. Cut through accounting jargon with our explainers. Each definition page is much more than an accounting definition. Beyond …
Year to Date (YTD) – Definition
Definition of year to date (accounting): The cumulative financial result from the start of the latest accounting year until the present day. What is Year to Date (YTD)? Year to …
Variable Cost – Definition
Definition of variable cost: an expense which increases or decreases proportionately to revenue. What is a variable cost? A variable cost is also known as a direct cost, because of …
Turnover – Definition
Definition of turnover (accounting): Income. Turnover is used interchangeably with revenue and gross income in the context of financial reporting. What is turnover? Turnover is an accounting term used most …
Quality of Earnings – Definition
Definition of quality of earnings: The extent to which the profits reported by a company are likely to recur as they are driven by the core operating activities of the …
Profit – Definition
Definition of profit (investing): a financial gain, measured as the difference between the income and the costs of a particular investment or activity. What is profit? Profit is measured as: …
Overheads – Definition
Definition of overheads: A business cost which is not directly linked to production or the provision of a service. What are overheads? Overhead is a name given to the collection …
Overdraft – Definition
Definition of overdraft: A short term borrowing facilility, with a pre-agreed borrowing limit, which is repayable on demand What is an overdraft? An overdraft is a short term, unsecured bank …
Onerous Contract – Definition
Definition of onerous contract: An agreement which commits a business to obligations which will generate losses. What is a onerous contract? No business wishes to be party to an onerous …
Liability – Definition
Definition of liability (accounting): A present obligation arising from past events. What is a liability? A liability is something a business will need to settle or pay in the future. …
Journal Entry – Definition
Definition of journal (accounting): An accounting record of a single transaction, in the ‘double entry’ accounting format. What is a journal? In simple English, a journal entry is an instruction …
Joint Venture – Definition
Definition of joint venture (business): A formal partnership between two independent organisations, which sees the partners share resources to achieve a common objective. Definition of joint venture (accounting): An arrangement …
International Financial Reporting Standards (IFRS) – Definition
Definition of International Financial Reporting Standards (IFRS): A widely used set of accounting and financial reporting rules which are applied by most public companies in the creation of their financial …
Income Statement – Definition
Definition of the income statement: A financial report which presents a company’s income and expenses for a financial period, in a prescribed format. What is the income statement? The income …
Income – Definition
Definition of income (accounting): Income is also known as revenue or turnover, and represents the amount of money a business earns by providing products and services to customers. Definition of …
Holding Company – Definition
Definition of holding company: A legal entity with a primary purpose of owning an equity stake in other companies. What is a holding company? A holding company in the UK …
Gross Profit – Definition
Definition of gross profit: gross profit is a measure of profit calculated by deducting direct costs (also known as cost of goods sold) from revenue. What is gross profit? Gross …
Gross Margin – Definition
Definition of gross margin: A ratio expressing gross profit as a percentage of revenue. Gross margin is also known as gross profit margin. How to calculate gross margin Here’s an …
Goodwill – Definition
Definition of goodwill (accounting): Goodwill represents the excess price for an asset over and above the identifiable fair value of an asset. What is goodwill? Goodwill is quite a complex …
Generally Accepted Accounting Principles (GAAP) – Definition
Definition of generally accepted accounting principles (GAAP): A comprehensive set of accounting and reporting standards which govern how companies financial statements record, measure, and disclose their financial transactions. What are …
General Ledger – Definition
Definition of general ledger: The primary set of accounts used to store and summarise the transactions of a company. What is the general ledger? It’s easiest to see the general …
Financial Statements – Definition
Definition of financial statements: A periodic report which discloses the financial performance and financial position of a company, along with other necessary disclosures. What are financial statements? Financial statements are …
Equity – Definition
Definition of equity (finance): the element of a organisations total value which is attributable to its shareholders Definition of equity (accounting): the book value of assets minus liabilities. The net …
Deferred Consideration – Definition
Definition of deferred consideration: An element of a purchase price which is only settled in cash at much later date than the transaction. What does deferred consideration mean In the …
Debenture – Definition
Definition of debenture: A long term business loan which is ‘secured’ against the assets of the company. This is a UK definition. What does debenture mean In the UK, a …
Cost of Goods Sold (COGS) – Definition
Definition of cost of goods sold (COGs): Costs of a business which can be directly attributed to revenue generated during the same financial period. What does cost of goods sold …
Capital Expenditure – Definition
Definition of capital expenditure (accounting): An outlay of a company’s funds on the purchase of equipment, tooling, machinery or sometimes property. Capital expenditure is often shortened to ‘capex’ when spoken …
Capital – Definition
Definition of capital (economics): Capital in economics represents the wealth of tangible assets and other resources which can be put to use to provide goods and services. Definition of capital …
Budget – Definition
Definition of budget (business): A long term financial plan which shows how a company plans to achieve its objectives. A summary of the income and expenditure a company will spend …
Balance Sheet – Definition
Definition of the balance sheet: The balance sheet is a key report in the financial statements of a company. In a tabular format, the balance sheet sets out the assets …
Asset – Definition
Definition of asset: An asset is a contractual right to a future economic benefit. Informally, it can also refer to anything or anyone of value. What does asset mean? Said …
Investment Definitions & Glossary
The free investing courses available on Financial Expert are aimed at beginner and amateur investors. What makes our investment training programs unique is our approach to the learning process. We …