Resources · Business management glossary
Business management glossary
Plain-language definitions for strategy, finance, and operations terms.
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Accounts payable (AP)Money a company owes to suppliers for goods or services received but not yet paid for. Managing accounts payable effectively improves supplier relationships, captures early-payment discounts, and protects cash flow.Accounts receivable (AR)Money owed to a company by its customers for goods or services delivered but not yet paid. Efficient AR management shortens the cash conversion cycle and reduces the risk of bad debts.Agile managementAn iterative approach to planning and delivery that emphasizes adaptability and customer feedback. Agile teams work in short cycles (sprints), deliver incremental value, and adjust priorities based on real-world results rather than rigid plans.AIArtificial intelligence; software that performs tasks normally requiring human judgement, such as understanding language, recognising patterns and making decisions. In business tools, AI powers automation, forecasting and assistants that act on your data.AI agentA software agent that uses artificial intelligence to automate tasks, respond to users, and make recommendations based on context and data. AI agents can handle repetitive processes like scheduling, data entry, and customer inquiries, freeing employees for higher-value work.ATSApplicant Tracking System; software to manage job postings, candidates, interviews, and hiring pipelines. An ATS streamlines the recruitment process, improves time-to-hire, and ensures a consistent candidate experience.AttributeA data field your organisation defines itself and records on its own records, such as the floor area of a building or the rented area of a tenant’s project. It is defined once, and its value is entered on each record that carries it.
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BenchThe people who still have uncommitted time in a planning period and can be assigned to work. In a services firm, being on the bench means being available rather than billable.BenchmarkingComparing business processes or metrics against industry standards or best-in-class peers to identify gaps. Benchmarking highlights areas where performance lags and provides concrete targets for improvement initiatives.Benefits administrationSystems and processes to manage enrolment, eligibility, and costs for employee benefits. Benefits administration platforms automate open enrolment, track dependent eligibility, and help employees understand and compare their options.Billable utilisation rateThe share of an employee’s available working hours that is billed to clients, expressed as a percentage (billable hours divided by total available hours, times 100). It is a core health metric for services firms, with delivery roles often targeting 70 to 85 percent.Break-even pointThe sales level where total revenue equals total costs, resulting in zero profit or loss. Knowing the break-even point helps businesses set pricing strategies, sales targets, and understand the minimum volume needed to cover fixed and variable costs.BudgetA financial plan that estimates expected revenue and spending for a given period. Budgets provide spending guardrails across departments and serve as a baseline for variance analysis throughout the fiscal year.Budget varianceThe difference between planned and actual figures, used to analyse performance. A favourable variance means spending was below budget or revenue exceeded expectations; an unfavorable one signals the need for corrective action.Burn rateThe pace at which a company uses cash, typically measured monthly for startups. Tracking burn rate is critical for understanding how long the business can operate before requiring additional funding or reaching profitability.Business modelThe way a company creates value, delivers it to customers, and captures revenue and profit. A business model defines the target audience, the offering, the revenue streams, and the cost structure that make the enterprise viable.Business planA structured document outlining a company’s goals, strategy, market, financials, and execution roadmap. It serves as both an internal guide for leadership and a tool for securing investment, partnerships, or funding.
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Capital expenditure (CapEx)Spending on long-term assets like equipment or property that deliver value over time. CapEx is capitalised on the balance sheet and depreciated over the asset’s useful life, affecting cash flow and tax planning.Cash flowThe movement of cash into and out of a business across operating, investing, and financing activities. Positive cash flow means the company generates more cash than it spends, which is essential for meeting obligations and funding growth.Cash-outThe money leaving the business over a coming period: invoices due to be paid and expected obligations not yet invoiced. A cash-out view looks forward rather than back at what has already been paid.Chorus ProFrance’s state platform for electronic invoicing to the public sector (B2G), operated by AIFE and accepting structured formats such as Factur-X, UBL and CII. Under the B2B reform that begins in September 2026, invoices between companies travel through accredited platforms (plateformes agréées) instead, while Chorus Pro remains the channel for invoicing public-sector buyers.Churn rateThe percentage of customers (logo churn) or recurring revenue (revenue churn) lost during a given period, typically measured monthly or annually. Reducing churn is often more cost-effective than acquiring new customers and is a key focus for subscription-based businesses.Committed costCost a business has contractually agreed to — for example through a signed contract or purchase order — but has not yet been invoiced or paid. Committed cost sits between the planned budget and the actual spend and shows how much of the budget is already locked in.ComplianceAdherence to external laws, industry regulations, and internal policies that govern business conduct, data handling, and reporting obligations. Non-compliance can result in fines, legal action, and reputational damage, making it a critical function in regulated industries.Continuous improvementA way of working in which a team improves its processes in small, regular steps rather than in occasional large overhauls. Each change is measured, kept if it helps and reversed if it does not; Kaizen and the Plan-Do-Check-Act (PDCA) cycle are its best-known methods.Cost splitDividing one cost, such as a supplier invoice, between several projects or assets. Each part carries its share of the amount, and the parts add up to the whole.CounterpartyAny external business your organisation deals with: a client, a supplier, a contractor or a partner. A company you both sell to and buy from is still one counterparty, carrying both roles.CRMCustomer Relationship Management; software for tracking leads, deals, and customer interactions across the lifecycle. A CRM provides sales, marketing, and support teams with a shared view of each customer, improving collaboration and conversion rates.
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DelegationAssigning decision-making authority and task responsibility to team members while the delegator retains overall accountability for results. Effective delegation develops team capabilities, reduces bottlenecks, and frees leaders to focus on higher-level priorities.Digital transformationThe strategic adoption of digital technologies to fundamentally change how a business operates and delivers value. Digital transformation goes beyond IT upgrades to reshape customer experiences, internal processes, and business models for the digital era.Draft bookingA proposed assignment of a person to a project role that is saved and visible but not yet committed. A draft does not count as coverage until someone with the authority confirms it.
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ebInterface (Austria)Austria’s XML e-invoicing standard used especially for B2G transactions. It is supported via Peppol and the Unternehmensserviceportal (USP), and some public bodies also accept XRechnung imports.EBITDAEarnings Before Interest, Taxes, Depreciation, and Amortisation; a measure of operating profitability. EBITDA strips out financing and accounting decisions, making it useful for comparing the operational performance of companies across industries.Employee retentionStrategies and metrics tracking an organisation’s ability to keep its workforce over time. High retention reduces hiring costs, preserves institutional knowledge, and signals a healthy workplace culture.Employee self-service (ESS)Portal or app that lets employees view payslips, request leave, update personal data, and manage benefits without HR intervention. ESS reduces administrative workload for HR teams and gives employees immediate access to their information.ERPEnterprise Resource Planning; integrated software that unifies finance, HR, operations, and supply chain data in one system. By centralising business processes, an ERP eliminates data silos and enables real-time reporting across departments.Expense managementWorkflow to submit, approve, and reimburse business expenses with policy controls. Expense management tools capture receipts, enforce spending limits, and feed approved costs into accounting for faster month-end close.
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FACeSpanish state portal for submitting electronic invoices to public administrations (B2G) using the Facturae format. FACe routes invoices to the correct contracting authority and sits alongside SII for VAT reporting and TicketBAI for Basque clearance and reporting.Factur-XA hybrid e-invoice format combining a human-readable PDF with embedded structured XML data, widely used in France and Germany. Factur-X allows both automated processing by systems and visual review by humans in a single document.Financial consolidationCombining the financial statements of a parent company and its subsidiaries into one set of group accounts. Consolidation translates each entity’s figures into the group currency, eliminates intercompany balances and transactions, and accounts for minority interests, so the group is reported as a single economic unit.Forecast at completion (FAC)The projected final cost of a project, calculated from actual cost incurred to date plus the expected cost of the work still remaining. Because it is an estimate, a forecast at completion should be presented as a prediction, not a booked figure.ForecastingEstimating future performance using historical data, assumptions, and scenarios. Financial forecasting helps leaders allocate resources, plan hiring, and anticipate cash flow needs before they become urgent.
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GDPRGeneral Data Protection Regulation; EU law that sets rules for collecting, processing, and protecting personal data. GDPR grants individuals rights over their data, including access, rectification, and erasure, and requires organisations to report breaches within 72 hours.General ledgerThe central record of a company’s accounting, holding every account in the chart of accounts and every posted transaction as debits and credits. The general ledger is the source from which the trial balance, the balance sheet and the profit and loss statement are produced.GovernanceThe structures, policies, and processes that ensure accountability and ethical management. Good governance defines decision-making authority, oversight responsibilities, and transparency standards across the organisation.Gross marginRevenue minus cost of goods sold, showing how much value remains to fund operations. Gross margin, expressed as a percentage, is a key indicator of production efficiency and pricing power.
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HRBPHuman Resources Business Partner; HR role embedded in business units to align people strategy with company goals. HRBPs act as strategic advisors to leadership, translating workforce data into actionable plans for hiring, development, and retention.HRISHuman Resources Information System; system of record for employee data, employment status, and organisational structure. An HRIS centralises records that feed payroll, compliance reporting, and workforce analytics.
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KPIKey Performance Indicator; a metric used to track performance against targets. KPIs are chosen to reflect the most critical success factors of a team, process, or initiative and are reviewed regularly to drive decisions.KSeFKrajowy System e-Faktur, Poland’s national e-invoicing system, through which VAT invoices are issued and received as structured XML and receive a KSeF number once accepted. It became mandatory for large taxpayers on 1 February 2026 and for most other VAT payers on 1 April 2026, with financial penalties for non-compliance applying from 2027.
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Leave management systemSoftware to request, approve, and track paid time off and leaves of absence. A leave management system enforces accrual policies, prevents scheduling conflicts, and gives managers real-time visibility into team availability.LLMLarge language model; an AI model trained on vast amounts of text to understand and generate human-like language. LLMs power chat assistants, document drafting and natural-language search in modern business software.
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Mercurius (Belgium)Belgium’s federal Peppol access point for B2G e-invoicing. Mercurius routes Peppol BIS invoices to public entities and underpins regional mandates, analogous to Chorus Pro in France, FACe in Spain, or ZRE/OZG-RE in Germany.Monthly project sign-offThe month-end confirmation, by the person responsible for a client project, of the hours and rates that will be billed for that month. Once signed, the month is ready to invoice.Monthly recurring revenue (MRR)The revenue a business can expect every month from its recurring agreements — subscriptions, retainers and support contracts — expressed as a monthly figure. One-off fees and project work are left out.Multi-entity accountingKeeping the books for a group of legal entities — subsidiaries, branches or holding companies — that each have their own ledger, currency and tax rules, while still reporting on the group as a whole. It covers intercompany transactions, shared charts of accounts and the consolidation of results across entities.
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OffboardingThe structured process of managing an employee’s departure, including knowledge transfer, access revocation, and exit interviews. A thorough offboarding process protects company data, captures valuable feedback, and maintains a positive employer brand.OKRObjectives and Key Results; a framework to set ambitious goals and track measurable outcomes. OKRs are typically set quarterly, pairing a qualitative objective with two to five quantifiable key results that indicate progress.Onboarding workflowAutomated steps to activate new hires, accounts, equipment, and training on day one. A well-designed onboarding workflow accelerates time-to-productivity, improves retention, and creates a positive first impression of the organisation.Operating expense (OpEx)Day-to-day costs of running a business, such as salaries, rent, and software. Unlike capital expenditures, operating expenses are fully deducted in the period they are incurred and directly affect short-term profitability.Operational efficiencyHow effectively a company turns inputs into outputs with minimal waste. Improving operational efficiency often involves streamlining processes, adopting automation, and eliminating bottlenecks that slow down delivery or inflate costs.
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P.S.A. (simple joint-stock company)Prosta spółka akcyjna, a Polish company form available since 1 July 2021 and designed with start-ups in mind. Its shareholders are not liable for the company’s debts, and it can be founded with a share capital of 1 złoty.Payment scheduleThe list of payments a contract sets out, each with an amount, a due date and a direction. A supplier contract’s schedule lists what you will pay; a client contract’s lists what you expect to receive.Payroll automationSoftware-driven calculation and disbursement of wages, taxes, and deductions with minimal manual intervention. Payroll automation reduces errors, ensures timely payments, and simplifies compliance with tax and labour regulations across jurisdictions.People analyticsData analysis of workforce metrics to improve hiring, retention, productivity, and equity. People analytics turns HR data into actionable insights, helping leaders identify trends like flight risk, pay gaps, and the effectiveness of development programmes.PeppolPan-European Public Procurement On-Line; a network and set of standards for cross-border e-invoicing and e-procurement. Peppol enables businesses to exchange electronic documents with public-sector buyers across Europe through certified access points.Performance management systemTools for setting goals, running reviews, calibrating ratings, and linking performance to rewards. A performance management system creates a structured feedback cycle that aligns individual contribution with business objectives.Pick up dayA day off an employee takes back in lieu, typically when a public holiday falls on a Saturday. It is an absence drawn from its own allowance, not from annual leave.ProcurementThe process of sourcing, negotiating, and purchasing goods or services for the business. Strategic procurement goes beyond cost reduction to evaluate supplier reliability, quality, risk, and alignment with sustainability goals.Professional Services AutomationSoftware that runs the full lifecycle of client projects for services firms — from sales pipeline and resourcing to time tracking, billing, and project profitability — in one connected system. Such tools are built for project-based businesses such as agencies, consultancies, and engineering firms rather than product companies.Project accountingA way of tracking revenue, costs, and profitability for each individual project rather than only for the company as a whole. It ties time, expenses, and billing back to specific engagements so a services firm can see which projects actually make money.Project charterA short document that authorises a project, defining objectives, scope, stakeholders, and authority. The charter serves as the project’s founding agreement, giving the team a clear mandate and decision-making boundaries.Project phaseA stage of a client engagement with its own dates, team and money, such as discovery, delivery or support. Phases let one project be planned, staffed and measured stage by stage.Project profitabilityHow much profit a project generates after subtracting all its costs — labour, expenses, and subcontractors — from the revenue it brings in. Measuring it per project helps services firms price better and drop work that loses money.Project templateA reusable description of a project’s structure and timing, such as its phases and checklists, from which new projects are created. The client, the team and the financial details belong to each project, not to the template.
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RACI matrixA grid that assigns each task or decision to people in one of four roles: Responsible (does the work), Accountable (owns the outcome and signs it off), Consulted (gives input beforehand) and Informed (is told afterwards). Each task has exactly one Accountable person.Realisation rateThe percentage of recorded billable work that actually gets invoiced and paid, after write-downs and discounts (amount billed divided by the standard value of hours worked). A low realisation rate signals leakage between the work done and the revenue collected.Resource managementThe practice of planning and assigning people to projects based on their skills, availability, and cost so that work is staffed without over- or under-loading the team. Good resource management keeps utilisation high while protecting delivery quality and margins.Revenue recognitionAccounting principle governing when earned income is recorded, following standards like IFRS 15 or ASC 606. Revenue recognition rules ensure that income is reported in the period it is earned, not when cash is received, giving stakeholders an accurate view of financial performance.Risk managementIdentifying, assessing, and mitigating threats to objectives across finance, operations, and compliance. Effective risk management balances potential impact against likelihood and assigns clear ownership for each identified risk.ROI (Return on Investment)Ratio of net gain to cost, used to evaluate the profitability of an investment or initiative. ROI is one of the most widely used financial metrics because it provides a simple, comparable measure of return regardless of investment size.Rolling forecastContinuously updated financial projection that extends the plan horizon each period. Unlike static annual budgets, rolling forecasts adapt to changing conditions and keep leadership focused on the months ahead rather than outdated assumptions.RunwayThe number of months a company can operate at its current burn rate before cash runs out. Extending runway through cost control or fundraising is a constant priority for pre-revenue and early-stage companies.
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SaaSSoftware as a Service; cloud-delivered software accessed via subscription rather than installed on-premise. SaaS products are maintained and updated by the vendor, reducing IT overhead and enabling rapid deployment across distributed teams.Sales pipelineThe collection of open deals and leads a company is pursuing, representing potential future revenue that has not yet been won. Weighting pipeline value by probability turns it into a forecast of income, distinct from revenue that is already signed.Scenario planningEvaluating multiple possible futures to prepare decisions and contingency plans. By modelling best-case, worst-case, and base-case scenarios, organisations can respond faster when conditions change unexpectedly.Scheduling systemSoftware to create, publish, and adjust staff schedules while managing availability and coverage. Scheduling systems reduce manual planning effort, minimise understaffing, and give employees visibility into their upcoming shifts.SDI (Italy)Sistema di Interscambio; Italy’s government clearance platform for mandatory B2B and B2G e-invoicing. Every invoice issued in Italy must pass through the SDI for validation before it is legally delivered to the recipient.Service level agreement (SLA)A contract that defines expected service standards such as response or resolution times. SLAs set measurable targets, outline penalties for non-compliance, and create shared accountability between service providers and their customers.Set-offSettling two debts between the same parties against each other instead of paying in both directions. What you owe a business and what it owes you cancel out up to the smaller amount, and only the difference remains to be paid.SII (Spain)Spain’s Immediate Supply of Information system for near-real-time VAT ledger reporting to AEAT. It is not a clearance platform but requires submitting issued and received invoice data within days, running alongside TicketBAI in the Basque region and FACe for B2G invoices.StakeholderAny individual or group with an interest in, or influence over, a company’s decisions and outcomes. Stakeholders include employees, customers, investors, regulators, and suppliers, each with different expectations that must be balanced.
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TenantA business or person that rents space, such as an office, a shop unit or a warehouse, under a lease. For a property owner or manager, each tenant is a source of rent and of recharged costs.TicketBAIBasque Country e-invoicing and real-time reporting mandate for invoices issued in Álava, Biscay, and Gipuzkoa. Each invoice generates a signed TicketBAI QR code submitted to the regional tax authority, complementing Spain’s SII VAT reporting and FACe B2G portal.Time and attendance systemTooling to capture hours worked, shifts, and absences for payroll and compliance. Accurate time tracking prevents wage disputes, ensures labour law compliance, and provides data for workforce planning and cost analysis.Time and materials (T&M) billingA billing model where clients are charged for the actual hours worked plus expenses incurred, rather than a fixed price. It is common in services work where scope is open-ended, and it relies on accurate time tracking to bill correctly.
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Work in progress (WIP)Work that has been delivered but not yet invoiced — unbilled time and costs sitting between delivery and billing. Tracking WIP tells a services firm how much earned revenue is waiting to be turned into invoices and cash.Work scheduleThe pattern of working days, start and end times and breaks an employee is expected to follow. A schedule can describe standard office hours, a part-time arrangement or rotating shifts.Workforce planningThe process of analysing and forecasting staffing needs to ensure the right people are in the right roles at the right time. Workforce planning connects headcount decisions to business strategy, budget constraints, and talent availability.Working capitalCurrent assets minus current liabilities; a measure of short-term liquidity. Adequate working capital ensures a company can cover its day-to-day operational costs and short-term debts without needing external financing.
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Zero-based budgetingBudgeting approach where every expense must be justified from zero each cycle. Zero-based budgeting prevents budget creep by forcing teams to re-evaluate all spending rather than simply adjusting last year’s numbers.ZRE / OZG-REGerman federal (ZRE) and state (OZG-RE) portals that receive B2G e-invoices in XRechnung format. They offer Peppol access points and web upload options, akin to FACe in Spain, Chorus Pro in France, or Mercurius in Belgium.