Startup Glossary (Metrics, Definitions & Formulas)

Glossary

A comprehensive guide to understanding and communicating key startup concepts. Your Go-To Resource for Startup Terminology: A Glossary of Key Metrics, Definitions, and Formulas

Accounting period

An accounting period is a specific length of time that is used for the purpose of preparing financial statements.

Accounting software

Accounting software is a type of computer program that is designed to help individuals and businesses manage their financial transactions and prepare financial statements.

Accounts payable

Accounts payable is a term used in accounting to refer to the amount of money that a company owes to its suppliers and creditors for goods and services that have been purchased on credit.

Accounts receivable

Accounts receivable is an asset account that represents money that is owed to a business by its customers for goods or services that have been delivered but not yet paid for.

Accredited Investor

An accredited investor is a term used by the Securities and Exchange Commission (SEC) to describe individuals and entities that are allowed to invest in certain types of private investment opportunities.

Accrual

An accrual is a term used in accounting to refer to the recognition of revenues and expenses when they are earned or incurred, rather than when they are received or paid.

Accrual accounting

Accrual accounting is a method of accounting in which revenues and expenses are recognized when they are earned or incurred, rather than when they are received or paid.

Amortization

Amortization is the process of gradually reducing the value of an intangible asset, such as a loan or bond, over a specific period of time.

Angel Investor

An angel investor is an individual who provides financial backing for small start-up companies or entrepreneurs.

Annual Contract Value (ACV)

Annual contract value (ACV) is a term used to describe the average annual revenue generated by a customer contract.

Annual Recurring Revenue (ARR)

Annual Recurring Revenue (ARR) is a financial metric that measures the portion of a company's revenue that is expected to recur on an annual basis.

Annual report

An annual report is a document that provides detailed information about a company's financial performance and activities over the course of a fiscal year.