Finance glossary.
Finance has a language of its own. Here are the fifteen terms you’ll hear most — tap any to see what it means. Reading at least five will unlock your stamp.
Revenue / Turnover
Total money coming in from sales, before any costs.
Profit
What's left when costs are taken away from revenue.
Loss
When costs are greater than revenue.
P&L
Profit & Loss statement - a summary of income and costs over a period.
Cash flow
The movement of money in and out of a business over time.
Invoice
A request for payment sent for goods or services provided.
VAT
Value Added Tax - a tax added to most goods and services in the UK.
Budget
A plan for expected income and spending over a period.
Forecast
An updated prediction of how the numbers will actually turn out.
Accounts payable
Money the business owes to its suppliers.
Accounts receivable
Money owed to the business by its customers.
Margin
The share of a sale left as profit once costs are covered, shown as a percentage.
Overheads
The ongoing running costs of a business - rent, insurance, utilities.
Fixed vs variable costs
Fixed costs stay the same each month; variable costs rise and fall with activity.
Purchase order (PO)
A document that formally orders goods or services and agrees the price up front.
Got the lay of the land?
Expand at least five terms to enable Mark complete — you don’t need to memorise them all now. This stays here as a reference, so come back whenever an acronym shows up on site that you don’t recognise.
Five expanded — you’re good to go.