Finances Glossary

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

Glossary

Running a business in the UAE means navigating a financial vocabulary that can feel overwhelming — especially if accounting is not your background. This glossary has been built specifically for UAE business owners, startup founders, and entrepreneurs. Every definition is written in plain English, tied to UAE regulations, and linked to deeper guides where relevant. Bookmark this page. You will come back to it.

Net profit margin calculation

To calculate the net profit margin, you need to divide the net profit by the revenue and multiply the result by 100 to express it as a percentage.

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Net Promoter Score (NPS)

The Net Promoter Score (NPS) is a measure of customer loyalty and satisfaction.

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Non-current assets

Non-current assets, also known as long-term assets, are assets that are expected to provide economic benefits to a company for a period of more than one year.

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Non-current liabilities

Non-current liabilities, also known as long-term liabilities, are liabilities that are not due for payment within the current accounting period.

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Officers

Officers are individuals who are appointed by a company's board of directors to manage the company's day-to-day operations.

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Operating expense

An operating expense, also known as an operating cost, is an expense that a company incurs in the course of its normal business operations.

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Operating profit

Operating profit, also known as operating income or earnings before interest and taxes (EBIT), is the profit earned by a company from its core business operations.

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Operating profit calculation

To calculate operating profit, you need to subtract the company's operating expenses from its revenue.

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Option Pool

An option pool is a portion of a company's equity that is set aside for future employees or other potential equity recipients.

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Output VAT

The 5% VAT you charge and collect from customers on taxable sales — which must then be remitted to the FTA.

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Outsourced Accounting

Engaging an external accounting firm to handle some or all of a business's financial functions — bookkeeping, VAT filing, payroll, corporate tax, and reporting.

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Outsourced CFO

An outsourced CFO is a professional who provides financial management and strategic planning services to a business on a contract basis.

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