Burn multiple is a term used in venture capital (VC) to describe the amount of money that a VC firm has invested in a portfolio company relative to the company's valuation at the time of investment.
Read MoreThe speed at which a startup or business spends its cash reserves each month. Particularly relevant for UAE-based startups, where runway management can determine whether a business survives to its next funding round.
Read MoreBusiness accounting is the process of recording, classifying, and analyzing the financial transactions of a business.
Read MoreTo calculate cost of sales, you will need to first determine the direct costs that are associated with the production of a company's goods or services.
Read MoreGross profit is an important metric for evaluating a company's financial performance, as it indicates the amount of profit generated from the sale of its products or services before accounting for other expenses, such as administrative and selling expenses, and taxes.
Read MoreSpending on long-term assets such as equipment, vehicles, or property. In UAE corporate tax calculations, CapEx is typically depreciated over the asset's useful life rather than deducted in full in the year of purchase.
Read MoreA cap table (short for capitalization table) is a spreadsheet or database that shows the ownership structure of a company.
Read MoreCash accounting is a method of accounting that recognizes revenue and expenses only when cash is received or paid out.
Read MoreThe net movement of cash in and out of your business. Positive cash flow means more money is coming in than going out. In the UAE, particularly for small businesses, poor cash flow — not lack of profit — is the most common reason businesses fail.
Read MoreA week-by-week or month-by-month projection of expected cash inflows and outflows over a future period.
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