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.

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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Goodwill

An intangible asset representing the premium paid when acquiring a business above its net asset value — reflecting brand strength, customer relationships, and market position.

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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 Profit

Revenue minus the direct cost of goods sold (COGS). Gross profit margin is one of the most important indicators of business efficiency, frequently reviewed by UAE banks and investors.

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Gross profit margin

Gross profit margin is a measure of a company's profitability that indicates how much of its total revenue is left after accounting for the cost of producing and selling its products or services.

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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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IFRS

The globally recognised accounting standards that UAE businesses are required to follow when preparing financial statements. IFRS compliance is a prerequisite for audit, banking, and corporate tax reporting in the UAE.

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Indirect costs

Indirect costs, also known as overhead costs or overhead expenses, are expenses that are not directly related to the production of a good or service.

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Input VAT

The 5% VAT you pay on business purchases — which can be reclaimed against the output VAT you collect from your own customers.

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Intangible assets

Intangible assets are non-physical assets that have a value to a company but cannot be touched or seen.

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