Plain-English definitions of AI, accounting, and SaaS-finance terms.
The application of artificial intelligence and machine learning to automate transaction categorization, reconciliation, and financial record-keeping.
The use of APIs to connect financial systems, enable real-time data exchange, and automate workflows between accounting, banking, and fintech platforms.
Short-term liabilities representing amounts a business owes to suppliers and vendors for goods or services received but not yet paid.
Amounts owed to a business by customers for goods or services delivered but not yet paid for.
An accounting method that records revenues and expenses when earned or incurred, regardless of when cash changes hands.
The systematic allocation of an intangible asset's cost or a loan's principal over a defined period.
A ratio measuring how efficiently a company generates revenue from its asset base.
A chronological record of all user actions, system events, and data changes in a financial system, providing a traceable history for auditing and investigation.
A financial statement showing a company's assets, liabilities, and equity at a specific point in time.
The process of matching a company's internal cash records to its bank statement to identify and resolve discrepancies.
A tax incentive allowing businesses to immediately deduct a large percentage of the cost of eligible property in the year it is placed in service.
Calculation of the sales volume at which total revenue equals total costs, generating zero profit.
An accounting method that records income and expenses only when cash is actually received or paid.
A structured list of all financial accounts used by a business to categorize and record every transaction.
An accounting model that distributes close activities throughout the period using automation and real-time data, reducing the month-end close crunch.
Revenue minus variable costs, showing how much each unit or sale contributes toward fixed costs and profit.
A liquidity ratio measuring a company's ability to pay short-term obligations using current assets, calculated as current assets divided by current liabilities.
The average number of days a company takes to pay its vendors, measuring how efficiently a company manages its accounts payable.
The average number of days a company takes to collect payment after a sale, measuring accounts receivable collection efficiency.
The systematic allocation of a tangible asset's cost over its useful life, reducing its book value on the balance sheet each period.
An accounting system where every transaction is recorded as both a debit and a credit across at least two accounts, keeping the books balanced.
The master record of all financial transactions in a business, organized by account and used to produce financial statements.
An intangible asset representing the premium paid in an acquisition above the fair market value of the target's identifiable net assets.
A financial statement showing a company's revenues, expenses, and net profit or loss over a specific period.
Non-physical assets with economic value including patents, trademarks, copyrights, software, customer relationships, and brand names.
The policies, procedures, and practices designed to safeguard assets, ensure financial accuracy, prevent fraud, and promote operational efficiency.
A ratio measuring how many times a company sells and replenishes its inventory over a period, indicating inventory management efficiency.
Optical Character Recognition technology that extracts text from financial documents like invoices and receipts, automating data entry into accounting systems.
Day-to-day expenses required to run a business, expensed immediately on the income statement.
The accounting principle determining when and how much revenue can be recorded on the income statement under GAAP.
Software robots that automate repetitive, rule-based digital tasks in financial processes by mimicking human interaction with systems and applications.
Immediate expensing of qualifying business property rather than depreciating it over multiple years.
An internal control principle requiring different people to handle different stages of a transaction to prevent fraud and errors.
Employee spending on business travel, meals, and client entertainment, managed through expense reports and corporate policies.
A report listing all general ledger account balances to verify that total debits equal total credits at a given date.
