Finances Glossary

Decode the buzzwords of the finances space
THE LANGUAGE OF FINANCES
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Startup Glossary  | Finanshels

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

COGS

COGS, or cost of goods sold, is a term used in accounting to refer to the direct costs associated with producing the goods or services that a business sells.

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COGS calculation

To calculate COGS, you will need to first determine the direct costs that are associated with the production of a company's goods or services.

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Calculate cost of sales

To calculate cost of sales, you will need to first determine the direct costs that are associated with the production of a company's goods or services.

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Calculate gross profit

Gross profit is an important metric for evaluating a company's financial performance, as it indicates the amount of profit generated from the sale of its products or services before accounting for other expenses, such as administrative and selling expenses, and taxes.

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Calculate gross profit margin

Gross profit margin = (Gross profit / Total revenue) x 100.

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Cap Table

A cap table (short for capitalization table) is a spreadsheet or database that shows the ownership structure of a company.

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Capital

Capital is a term that has several related meanings in finance and economics.

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Capital Expenditures (CapEx)

Capital expenditures (CapEx) are funds used by a business to acquire, maintain, or improve its physical assets, such as property, buildings, or equipment.

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Cash accounting

Cash accounting is a method of accounting that recognizes revenue and expenses only when cash is received or paid out.

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Cash flow

Cash flow is a financial term that refers to the movement of cash into and out of a business, investment, or financial product.

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Cash flow management

Cash flow management is the process of carefully tracking and managing the amount of cash coming into and going out of a business.

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Chart of accounts

A chart of accounts is a list of the accounts that a business uses to record its financial transactions.

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