Glossary

AI Finance Glossary

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

A

Accounts Receivable

Amounts owed to a business by customers for goods or services delivered but not yet paid for.

Aging Report

A financial report categorizing outstanding invoices or payables by how long they have been outstanding, used to manage collections and payment prioritization.

Invoicing & ARAP Automation

D

Days Sales Outstanding

The average number of days a company takes to collect payment after a sale, measuring accounts receivable collection efficiency.

Invoicing & ARAccounting & Bookkeeping

Dunning

The process of systematically communicating with customers to collect overdue payments, through a sequence of increasingly urgent reminders.

Invoicing & ARSaaS Billing

E

Early Payment Discount

A price reduction offered by sellers to buyers who pay invoices before the standard due date, improving the seller's cash flow.

AP AutomationInvoicing & AR

I

Invoice Factoring

A financing arrangement in which a business sells its outstanding invoices to a third party at a discount in exchange for immediate cash.

Invoicing & ARRevenue Financing

L

Lockbox

A bank service that collects and processes customer check payments sent to a dedicated PO box, accelerating cash application and reducing float.

Invoicing & ARBusiness Banking

R

Remittance Advice

A document sent by a payer to a payee specifying which invoices a payment covers, facilitating accurate cash application.