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

Fixed cost

A fixed cost is a type of cost that remains constant regardless of the volume of goods or services produced.

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Forecasts

Financial forecasting is the process of estimating future financial performance based on an organization's current and historical financial data.

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Fractional CFO

Fractional CFO is a type of financial management service in which a business can hire a Chief Financial Officer (CFO) on a part-time or temporary basis.

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Free Cash Flow (FCF)

Free cash flow (FCF) is a measure of a company's financial performance that represents the amount of cash it has available for distribution to shareholders after accounting for capital expenditures.

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Free cash flow

Free cash flow is a measure of a company's financial performance that indicates how much cash it is generating from its operations after accounting for the purchase of assets, such as property, plant, and equipment.

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Full-Time Employee (FTE)

A full-time employee (FTE) is someone who works a regular number of hours for an employer. In most cases, a full-time employee works at least 35 to 40 hours per week.

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Generally Accepted Accounting Principles (GAAP)

Generally accepted accounting principles (GAAP) are a set of rules, standards, and guidelines for the preparation of financial statements.

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Go-to-Market (GTM)

Go-to-market (GTM) is a strategy that describes the process of bringing a product or service to market and making it available for customers to buy.

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Gross Margin

Gross margin is a measure of a company's profitability that represents the percentage of revenue that the company retains after accounting for the cost of goods sold. It is calculated by dividing the company's gross profit by its total revenue.

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Gross Merchandise Value (GMV)

Gross merchandise value (GMV) is a measure of the total value of goods sold through a particular platform or channel.

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Gross Retention

Gross retention refers to the percentage of a company's customers or clients that remain with the company over a specific period of time.

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Gross profit

Gross profit is a measure of a company's profitability that excludes the costs of producing and selling its products or services. It is calculated by subtracting a company's cost of goods sold (COGS) from its total revenue.

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