Finances Glossary

Decode the buzzwords of the finances space
THE LANGUAGE OF FINANCES
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Startup Glossary  | Finanshels

Glossary

A comprehensive guide to understanding and communicating key startup concepts. Your Go-To Resource for Startup Terminology: A Glossary of Key Metrics, Definitions, and Formulas

Churn rate

Churn rate is a measure of the percentage of customers or users who stop doing business with a company over a given period of time.

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Cohort Analysis

Cohort analysis is a method of dividing customers or users into groups, or cohorts, based on common characteristics or experiences.

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Commercial invoice

A commercial invoice is a document that provides detailed information about a commercial transaction between a buyer and a seller.

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Contribution Margin

The contribution margin is a measure of the amount of revenue that is available to cover fixed costs after variable costs have been accounted for.

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Convertible Note

A convertible note is a type of debt financing that allows the borrower to convert the loan into equity in the future, usually at the time of a specific event such as the company reaching a certain valuation or the issuance of new shares.

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Cost Per Click (CPC)

Cost per click (CPC) is a metric used in online advertising that measures the amount an advertiser pays for each click on their ad.

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Cost of Goods Sold (COGS)

Cost of Goods Sold (COGS) is a measure of the direct costs associated with producing the goods or services that a company sells.

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Cost of sales

Cost of sales, also known as cost of goods sold (COGS), is a term used in accounting to refer to the direct costs associated with producing the goods or services that a business sells.

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Cross-Selling

Cross-selling is a sales technique that involves encouraging a customer who has purchased a product or service to also purchase a related product or service.

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Current assets

Current assets are assets that can be easily converted into cash within one year or less.

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Current liabilities

Current liabilities are obligations that a company is expected to pay within one year or within the company's operating cycle, whichever is longer.

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Customer Acquisition Cost

Customer Acquisition Cost (CAC) is a measure of the cost associated with acquiring a new customer.

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