Glossary

The money a business owes to its suppliers and vendors for goods or services already received.

The money owed to a business by customers for goods or services already delivered.

A comparison between what actually happened financially and what was budgeted or forecast.

An AI system that can take multiple steps toward a finance goal, not just answer a single question.

A confident but factually wrong output from an AI model, including numbers that look right but don't tie to the source data.

The value of a customer contract normalized to a one-year basis, used for sales comparability.

The value of recurring revenue a subscription business expects to receive over a twelve-month period.

Annual recurring revenue divided by headcount, used as a rough measure of organizational efficiency.

A record showing how a reported figure was produced, complete enough to withstand scrutiny after the fact.

A financial statement showing what a business owns, owes, and its net worth at a point in time.

An AI system whose outputs can't be traced back to the data or logic that produced them.

The total value of new contracts signed in a period, regardless of when the revenue is recognized.

Building a forecast by aggregating detailed, granular assumptions (by rep, product, or cost line) up to a company total.

Three related but distinct terms for a company's numbers: a commitment, a current estimate, and a strategic frame.

Net burn divided by net new ARR, measuring how much cash a company spends to generate each dollar of new recurring revenue.

The rate at which a business spends its cash reserves, typically measured per month.

The number of months it takes a company to earn back what it spent to acquire a customer.

The number of days it takes a company to convert money spent on inventory back into cash from customers.

A projection of cash moving in and out of a business over a future period.

How many months a company can operate before running out of cash, given current cash and burn.

The structured list of every account a business uses to categorize its financial transactions.

The rate at which customers or revenue are lost over a given period.

Tracking a group of customers who started in the same period separately, rather than blending them into one average.

Combining the financial results of multiple entities into a single set of group financial statements.

A planning cadence that updates forecasts continuously against fresh actuals, instead of on a fixed monthly or quarterly cycle.

Revenue minus variable costs, before fixed costs are allocated.

The direct costs of producing the goods or services a business sells.

An EU directive expanding sustainability reporting obligations, requiring disclosures that sit alongside financial statements and face assurance.

The fully loaded sales and marketing cost of acquiring one new customer over a defined period.

The total revenue or margin a business expects to earn from a customer over the full life of the relationship.

The average number of days it takes to collect cash after a sale is invoiced.

Payment received for goods or services not yet delivered, recorded as a liability until earned.

The map of how every figure in a financial model depends on other figures, used to recompute results correctly when an assumption changes.

A computation that always produces the same output from the same inputs, run by an engine rather than guessed by a model.

A visual breakdown of a top metric into the controllable inputs that drive it.

Building a financial plan around the operational drivers (headcount, price, volume) that actually determine outcomes, rather than a flat percentage growth assumption.

Germany's requirement for structured electronic invoices in domestic business-to-business transactions, phased in receiving first.

Earnings before interest, taxes, depreciation, and amortization: a proxy for operating cash-generating performance.

The category of software and process used to plan, budget, forecast, and report on company performance.

The reconciled, citable trail connecting a reported figure back to the exact filed document it came from.

Assigning shared or indirect costs across departments, products, or entities according to a defined rule.

Explainability shows how an AI reached an answer; verifiability proves the answer is correct before it's shown at all.

A structured representation of a business's finances used to calculate, project, and analyze performance.

How closely a forecast's projected figures matched what actually happened.

A systematic skew toward being too conservative or too optimistic, visible only across multiple periods.

Financial Planning & Analysis: the function responsible for budgeting, forecasting, and analyzing a company's financial performance.

Cash generated by operations after accounting for capital expenditure: the cash actually available to a business.

Generally Accepted Accounting Principles: the standardized accounting rules and conventions used mainly in the United States.

Revenue minus the cost of goods sold, expressed as a percentage of revenue.

The percentage of recurring revenue retained from existing customers over a period, excluding any expansion revenue.

A model of a company's current and future workforce, tied to hiring, compensation, and attrition assumptions.

Confirmed financial results from past periods, used as the baseline for forecasts and comparisons.

International Financial Reporting Standards, the accounting framework used by most jurisdictions outside the United States.

Variable pay (commission, bonus, or equity) tied to performance against a quota, target, or plan.

A transaction between two entities under the same parent company, which must be eliminated when preparing consolidated financial statements.

A record of a single financial transaction in a company's general ledger, with matching debits and credits.

A measurable value tracked to show how effectively a business is achieving a specific objective.

The traceable path from a reported figure back through every calculation to its source data.

A measure of a business's ability to cover its short-term obligations with its short-term assets.

A multi-year financial projection, typically three to five years, used to guide strategic decisions beyond the current budget cycle.

The ratio of a customer's lifetime value to the cost of acquiring them, used to judge growth efficiency.

Examining profitability at the gross, operating, or net level to understand what's driving changes over time.

The dollar or percentage line that decides which variances get flagged for investigation.

A protocol-based interface that gives other AI tools and systems permission-scoped access to a governed model.

The risk that a model's output is wrong, or right but misapplied, and that the error goes uncaught.

The process of finalizing a period's accounting records so reported figures are accurate and ready to use.

The recurring revenue a subscription business expects to collect in a given month, restated from active contracts.

Financial planning across a group structure of multiple legal entities, holding companies, or subsidiaries.

The percentage of recurring revenue retained from existing customers over a period, including expansion and net of churn.

Current assets minus current liabilities: a measure of a business's short-term operating liquidity.

A multidimensional data structure that pre-aggregates numbers for fast slicing, at the cost of a traceable path back to source records.

The ongoing costs of running a business (salaries, rent, marketing) excluding the cost of goods sold.

Operating income divided by revenue, profitability after operating expenses but before interest and tax.

The profit and loss statement: a summary of revenue, costs, and resulting profit or loss over a period.

An international network and document standard for exchanging e-invoices and procurement documents between trading partners across borders.

The ratio of open sales pipeline value to the revenue target it needs to support, used to gauge forecast confidence.

Malicious instructions hidden inside a document or data source an AI reads, aimed at hijacking its behavior.

The verifiable origin of a number: the source document, extraction, and check that produced it.

Setting individual or team sales targets, typically derived from a top-down revenue goal and territory structure.

Confirming that a derived or reported figure agrees with its underlying source records.

The accounting rules governing when and how revenue is recorded, independent of when cash is received.

A forecast that's continuously extended and updated on a fixed cadence, rather than fixed to a calendar year.

A SaaS benchmark stating that growth rate plus profit margin should equal or exceed 40%.

A single period's revenue extrapolated to a full year by simple multiplication.

A sales-efficiency ratio measuring new recurring revenue generated per dollar of sales and marketing spend.

A growth-efficiency metric comparing new and expansion MRR to churned and contracted MRR.

A cross-functional process aligning demand forecasts, supply plans, and financial plans on a recurring cycle.

Deliberately setting a low target or forecast to guarantee beating it later.

A version of a plan with specific assumptions changed, kept tied to the same base case rather than copied out on its own.

Testing how much a result changes as a single assumption is varied, to see which drivers matter most.

Financial reports a business is legally required to file with a regulator, tax authority, or company registry.

A financial model that links the income statement, balance sheet, and cash flow statement so they stay internally consistent.

Building a forecast by starting from a company-wide target and allocating it down to teams, products, or periods.

An adjustment made at the consolidation level rather than in a subsidiary's own books.

The full list of every ledger account and its balance at a point in time, used as the source for reconciliation.

The five-step path (filed, extracted, reconciled, cited, exported) that every figure in Rexfin travels before it's used.

The direct revenues and costs associated with a single unit of a business model, such as one customer or one order.

Explaining the difference between an actual result and a budgeted or forecast figure.

Expressing each line item on a financial statement as a percentage of a base figure, like total revenue or total assets.

A version of a financial model with one or more assumptions changed, used to test the impact of a decision or event.

The capital available for day-to-day operations, generally current assets minus current liabilities.

eXtensible Business Reporting Language, a standardized format for tagging financial statement data for machine readability.

Planning and analysis practices extended from finance into other business functions, like sales, workforce, and supply chain.

The percentage change in a metric compared to the same period one year earlier.

Saudi Arabia's phased e-invoicing program requiring structured, digitally cleared invoices for VAT-registered businesses.

A budgeting method that requires every line to be justified from zero each period rather than adjusted from the prior year.