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Glossary

AI Finance Glossary

Plain-English definitions of AI, accounting, and SaaS-finance terms.

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B

Burn Rate

The rate at which a company spends its cash reserves each month, critical for tracking how long funding will last.

FP&A & ForecastingCFO Platform

C

Cash Flow Statement

A financial statement showing all cash inflows and outflows across operating, investing, and financing activities over a period.

Financial ReportingCFO Platform

P

Predictive Analytics in Finance

The use of statistical models and machine learning to forecast future financial outcomes including revenue, cash flow, churn, and credit risk.

FP&A & ForecastingCFO Platform

R

Real-Time Reporting

Financial and operational reporting that reflects current data as of the moment of viewing, rather than end-of-day or end-of-period snapshots.

Financial ReportingCFO Platform

Rolling Forecast

Continuously updated financial forecast extending a fixed period ahead, replacing point-in-time annual budgets.

FP&A & ForecastingCFO Platform

Rule of 40

A SaaS benchmark stating that a company's revenue growth rate plus profit margin should sum to 40% or more.

FP&A & ForecastingCFO Platform

Runway

The number of months a company can operate at its current burn rate before exhausting its cash reserves.

FP&A & ForecastingCFO Platform

S

Scenario Planning

Developing multiple coherent narratives about future business conditions to prepare strategic responses.

FP&A & ForecastingCFO Platform

T

Treasury Management

The organizational function responsible for managing a company's liquidity, cash flow, investments, debt, and financial risk.

Treasury ManagementCFO Platform

W

Working Capital

The difference between current assets and current liabilities, measuring a company's short-term liquidity and operational efficiency.

Treasury ManagementCFO Platform