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Glossary of Financial Terms

Understanding the world of finance can be complex, with many terms, phrases, and jargon that can be difficult to parse through. To help, we put together this glossary of finance terms. This glossary contains commonly used terms you’ll encounter, along with straightforward definitions. This can be an invaluable resource for finance teams, startup founders, SMBs, and more.

Customer Satisfaction Score (CSAT)
Product Activation Rate
DAU Ratio
Pipeline Coverage
Net Monthly Recurring Revenue (MRR) Growth Rate
Website Conversion Rate
Email Open Rate & Email Click-Through Rate
Return on Ad Spend (ROAS)
Win Rate
Product Qualified Leads (PQL)
The Rule of Forty (RO40)
SaaS Magic Number
Willingness to Pay (WTP)
Time to Value (TTV)
Sales-Qualified Leads (SQL)
Bookings
Lead Velocity Rate (LVR)
Net Promoted Score (NPS)
Marketing Qualified Leads (MQL)
EBITDA
EBIT
Customer Renewal Rate (CRR)
Cost-Per-Hire (CPH)
Average Revenue Per User (ARPU)
AARRR
Value-based Pricing
Accruals
CAC-LTV Ratio
SaaS Quick Ratio
CAC Payback Period
Order to Cash
Value Added Tax (VAT)
Deferred Revenue
Revenue Backlog
Accrued Revenue
Consolidated Invoicing
Credit Notes
Grandfathering
Total Contract Value (TCV)
Volume Discounting
Monthly Recurring Revenue (MRR)
Lifetime Value (LTV)
Customer Acquisition Cost (CAC)
Net Revenue Retention (NRR)
Churn
Tech Stack
Business Intelligence (BI)
Contracted Annual Recurring Revenue (CARR)
Percentage of Completion (POC)
Annual Recurring Revenue (ARR)
Fiscal Year (FY)
Enterprise Resource Planning (ERP)
Annual Contract Value (ACV)
Trial Balance
Chart of Accounts (COA)
Cost of Good Sold (COGS)
Actuals
General Ledger
Headcount Planning
Capital expenditures (CAPEX)
Accounts Payable Turnover
Cash Conversion Cycle (CCC)
Quick Ratio or Acid Test Ratio (ATR)
Efficiency
Gross Profit Margin
Working Capital
Liquidity
Current Ratio
Operating Cash Flow (OCF)
Return on Investment (ROI)
Internal Rate of Return
Future Value
Net Present Value (NPV)
Earnings Per Share (EPS)
Return of Equity (ROE)
Compound Average Growth Rate (CAGR)
Strategic Finance
Burn Rate
Valuation
Total Debt-to-Asset Ratio
Leverage
Total Debt-to-Equity Ratio
Interest Coverage Ratio
Break-Even Point (BEP)
Payback Period
Net Profit Margin
Sales Growth Rate
Profitability
Operating Expense (OPEX)
BizOps
Budget Variance Analysis
RevOps
Cash Outflows
Corporate Performance Management (CPM)
Cash Inflows
Accounts Receivable (AR)
Accounts Payable (AP)
xP&A
Budget Owners
Data Consolidation
A
AARRR
A
Accounts Payable (AP)
A
Accounts Payable Turnover
A
Accounts Receivable (AR)
A
Accruals
A
Accrued Revenue
A
Actuals
A
Annual Contract Value (ACV)
A
Annual Recurring Revenue (ARR)
A
Average Revenue Per User (ARPU)
B
BizOps
B
Bookings
B
Break-Even Point (BEP)
B
Budget Owners
B
Budget Variance Analysis
B
Budgeting
B
Burn Rate
B
Business Intelligence (BI)
C
CAC Payback Period
C
CAC-LTV Ratio
C
Capital expenditures (CAPEX)
C
Cash Conversion Cycle (CCC)
C
Cash Inflows
C
Cash Outflows
C
Chart of Accounts (COA)
C
Churn
C
Compound Average Growth Rate (CAGR)
C
Consolidated Invoicing
C
Contracted Annual Recurring Revenue (CARR)
C
Corporate Performance Management (CPM)
C
Cost of Good Sold (COGS)
C
Cost-Per-Hire (CPH)
C
Credit Notes
C
Current Ratio
C
Customer Acquisition Cost (CAC)
C
Customer Renewal Rate (CRR)
C
Customer Satisfaction Score (CSAT)
D
DAU Ratio
D
Data Consolidation
D
Deferred Revenue
E
EBIT
E
EBITDA
E
Earnings Per Share (EPS)
E
Efficiency
E
Email Open Rate & Email Click-Through Rate
E
Enterprise Resource Planning (ERP)
F
FP&A
F
Fiscal Year (FY)
F
Forecasting
F
Funding
F
Future Value
G
General Ledger
G
Grandfathering
G
Gross Profit Margin
H
Headcount Planning
I
Interest Coverage Ratio
I
Internal Rate of Return
L
Lead Velocity Rate (LVR)
L
Leverage
L
Lifetime Value (LTV)
L
Liquidity
M
Marketing Qualified Leads (MQL)
M
Modeling
M
Monthly Recurring Revenue (MRR)
N
Net Monthly Recurring Revenue (MRR) Growth Rate
N
Net Present Value (NPV)
N
Net Profit Margin
N
Net Promoted Score (NPS)
N
Net Revenue Retention (NRR)
O
Operating Cash Flow (OCF)
O
Operating Expense (OPEX)
O
Order to Cash
P
Payback Period
P
Percentage of Completion (POC)
P
Pipeline Coverage
P
Product Activation Rate
P
Product Qualified Leads (PQL)
P
Profitability
Q
Quick Ratio or Acid Test Ratio (ATR)
R
Resource Planning
R
Return of Equity (ROE)
R
Return on Ad Spend (ROAS)
R
Return on Investment (ROI)
R
RevOps
R
Revenue Backlog
R
Runway
S
SaaS Magic Number
S
SaaS Quick Ratio
S
Sales Growth Rate
S
Sales-Qualified Leads (SQL)
S
Scenario Planning
S
Strategic Finance
T
Tech Stack
R
The Rule of Forty (RO40)
T
Time to Value (TTV)
T
Total Contract Value (TCV)
T
Total Debt-to-Asset Ratio
T
Total Debt-to-Equity Ratio
T
Trial Balance
V
Valuation
V
Value Added Tax (VAT)
V
Value-based Pricing
V
Volume Discounting
C
Website Conversion Rate
W
Willingness to Pay (WTP)
W
Win Rate
W
Working Capital
X
xP&A
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